INDIANA – Tax scams can cause significant harm to Indiana taxpayers, leading to identity theft, financial loss, and other negative consequences. Beware of fraudsters who try to deceive you with these common tax scams.
Phishing Scams
Criminals send phishing emails or text messages that appear to be from the IRS or the Indiana Department of Revenue (DOR). Usually, you are asked to click on links, which leads to fake, imposter websites that look like real ones. Fake websites can steal any sensitive information you provide – Social Security numbers or banking information— and use it to steal your identity.
Prevention Tip
Do not click on links in emails or text messages from unknown sources, especially if they claim to be DOR. Remember, DOR’s official website is dor.in.gov.
Phone Scams
Criminals call taxpayers and pretend to be from the IRS or another legitimate tax authority—to obtain sensitive information. They may threaten you with legal action or arrest if you do not immediately pay them money.
Prevention Tip
The IRS and DOR never call taxpayers to demand immediate payment or threaten legal action. If you receive a call like this, hang up and contact the IRS or DOR to ensure the call you received is legitimate. If taxes are owed, you will receive a bill in the mail from DOR for the total amount due.
Identity Theft Scams
Criminals may use your stolen information to file a tax return and claim a refund. The victim may not even realize their identity has been stolen until they file their tax return and it is rejected due to duplicate filings.
Prevention Tip
Keep your sensitive information secure. Use strong passwords and never share them with anyone. When possible, take advantage of two-factor authentication. Check your credit report regularly to make sure there are no unauthorized accounts or activities.
Preparer Fraud
Preparer fraud occurs when a tax preparer misrepresents information on a tax return to increase the taxpayer’s refund or reduce their tax liability. This can result in the taxpayer being audited and having to pay penalties and interest on incorrect amounts.
Prevention Tip
Choose a reputable tax preparer and verify their credentials. Review your tax return carefully before signing and filing it.
Taking these steps can help protect you and keep your sensitive information secure.
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