In 2017, one consumer like organization received approximately 3,500 reports to their scam tracker from consumers regarding con artists claiming to be with the IRS. The scams tend to rely on tactics such as intimidation (such as threats of arrest), isolation (to keep victims from talking to their family members about the supposed tax issue), and/or pressure to act quickly. Tax collection scams often employ all three to bully their targets into compliance.

Here are some ways consumers and business owners can combat tax fraud: 

• Only deal with trustworthy tax preparation services. I prefer doing business with an established company.
• Protect personally identifiable information (PII) such as birth date, Social Security numbers, bank accounts, etc.
• Check out websites carefully and make sure you are accessing the real IRS website (irs.gov) when filing your taxes electronically or inquiring for additional information. (see book for more info)
• If you get tax information delivered electronically from your employer or other entity, treat that information carefully. Download it onto a password-protected computer. Understand how tax scams work and be on guard for “red flags” such as calls before you’ve received any kind of letter from the Internal Revenue Service, as they will send you a letter first.
• Watch for demands for immediate payment, threats or intimidation, or payment requests via wire transfer, prepaid debit card, or gift card.