TN AG’s Division of Consumer Affairs Provides Tips to Avoid Tax Return Scams

With Tax Day around the corner, the Division of Consumer Affairs reminds Tennesseans to be wary of scams related to tax returns. Scammers will try various tactics to get their hands on your money, including issuing fake communications claiming to be from legitimate agencies such as the IRS. These messages can arrive in the form of an unsolicited call, text, email, or mailer. Common scenarios that a con artist may attempt include:

• Indicating that an unclaimed refund is available—you just need to click a link and provide personal and financial information like your drivers’ license and bank routing number to get it.
• Stating that a mistake was made on your return, and you need to refund the money immediately via gift card or wire transfer to avoid penalty or arrest.
• Claiming that their services are needed to settle tax debts with the IRS and/or that your debts can be settled for pennies on the dollar.

Remember, if someone contacts you about a tax rebate or refund:

• Never click on links in unexpected texts or emails. Don’t share personal information with anyone who contacts you out of the blue. Always use a website or phone number you know is real.
• Know that the IRS won’t call, email, or text to contact you for the first time. They’ll always start by sending you a letter. If you have questions about an IRS letter you received, call the IRS directly at 800-829-1040. Please be aware that scammers may pose as an IRS agent by using an altered caller ID.
• Note the payment method. Stop contact with anyone who demands immediate payment via gift cards, cryptocurrency, wire transfer, or prepaid debit cards.
• Find the status of any pending refund on the IRS official website. Visit Where’s My Refund.
• Understand that a third party is not needed to settle tax debt for less than the full amount owed. Consumers can review IRS resources such as the Offer in Compromise Pre-Qualifier to help resolve a tax debt on their own without facing hefty fees.
• Be wary of “scammer grammar” in the notification. This may include odd punctuation, a mixture of fonts, and inaccuracies in the listed tax deadlines and agency contact information.
• Report unsolicited texts or emails claiming to be the IRS. Forward a screenshot or the email as an attachment to phishing@irs.gov.

Consumers can also report scams to the Treasury Inspector General for Tax Administration or the Federal Trade Commission at ReportFraud.FTC.gov.