As Americans crunch numbers to get the most out of their tax returns, scammers lurk just around the corner. Bad actors often take advantage of tax season anxiety to cause confusion and trick people out of their hard-earned money or their personal information.

So, as you gather your documents and dust off your tax forms, First Merchants Bank encourages you to be on your guard against suspicious phone calls, emails, or postal mail.

The Internal Revenue Service (IRS) warns against several common tax scams including:

Impersonating the IRS

Bad actors may impersonate an IRS agent and contact you over the phone or via e-mail demanding payment of fines, fees, or back taxes.

Be aware that a true IRS agent is unlikely to contact you by phone and should never pressure you into an immediate payment. Be especially cautious if the caller requests the amount as a money order or pre-paid credit card.

Locked Tax Return

What if you receive an e-mail indicating that your tax return is locked or restricted? In all likelihood, this is a scammer who is after your private information. This kind of e-mail is called a “phishing” e-mail and will often encourage you to follow a link to fill out a form or enter your login information.

To protect against information theft, never click links on e-mails you aren’t expecting – especially if you did not personally trigger an account lock or request a password reset.

And remember, the IRS or a tax preparation service should never withhold your return for any reason. If you fear there is a problem with your return, don’t hesitate to contact the IRS directly.

Update Tax Filing Information

You may also receive an e-mail or letter asking you to update your tax filing information via a specific link. This is also a phishing tactic. Only click links in e-mails from valid sources, and only in e-mails you are expecting.

Be sure to closely check the sender’s address, as some phishing e-mails look very much like the real deal. Typically, however, the sender’s address will be a little off from the correct e-mail.

And, as always, beware of e-mails that pressure you to act quickly, or contain information designed to make you panic or worried.

Refund Eligible

Sometimes, however, scammers tempt consumers with a reward, instead of inducing anxiety. Be especially careful of phone calls and e-mails that say you’re eligible for a refund – especially if they ask you to submit any personal information.

Your tax preparation service and the IRS should have all the information they need to issue your tax refund, and should not be contacting you for additional information. Remember that it is extremely unlikely the IRS or a tax preparation service will contact you via phone or e-mail.

In 2022, the IRS reported a rise in this type of scam, with bad actors pretending to be from a tax advocacy organization. Remember: do not give anyone your personal information over the phone or over e-mail; and, if it sounds too good to be true, it probably is.

More Information

Remember, scammers operate year-round – not just during tax season – so don’t relax your guard once you’ve received your refund.

To learn more about potential tax scams and how you can avoid them, visit the IRS’s website. You can also view the service’s guide on how to tell if you’re really being contacted by the IRS.

If you think you have been a victim of a tax-related scam, you can report this activity on the IRS’s website. You can report IRS-impersonators, tax-related phishing attempts, and fraud to the Treasury Inspector General for Tax Administration Office by calling 800-366-4484.