With Tax Day approaching, the Tennessee Division of Consumer Affairs is urging residents to be cautious of tax return scams. Scammers are employing various tactics to deceive individuals into giving away their money by pretending to be from legitimate agencies like the IRS. These fraudulent communications can come in the form of unsolicited calls, texts, emails, or mailers.
Common strategies used by scammers include claiming that an unclaimed refund is available and requesting personal and financial information such as a driver's license and bank routing number. Another tactic involves stating that a mistake was made on a tax return and demanding immediate payment via gift card or wire transfer to avoid penalties or arrest. Additionally, scammers may offer services to settle tax debts with the IRS for significantly less than owed.
The Division of Consumer Affairs advises against clicking on links in unexpected texts or emails and sharing personal information with unknown contacts. It emphasizes that the IRS will not initiate contact through calls, emails, or texts but will send a letter first. If there are questions about an IRS letter received, individuals should directly call the IRS at 800-829-1040.
Payment methods requested by scammers often include gift cards, cryptocurrency, wire transfers, or prepaid debit cards. Consumers are encouraged to check the status of any pending refunds on the official IRS website under "Where’s My Refund."
The division also highlights that third-party services are unnecessary for settling tax debt for less than what is owed. Resources like the Offer in Compromise Pre-Qualifier can help resolve tax debts without incurring significant fees.
Signs of scam communications may include unusual punctuation, mixed fonts, and incorrect tax deadlines or agency contact details. Unsolicited texts or emails claiming to be from the IRS should be reported by forwarding them as attachments to phishing@irs.gov.
Scams can also be reported to the Treasury Inspector General for Tax Administration or through ReportFraud.FTC.gov managed by the Federal Trade Commission.