It's that time of the year again: tax season. While most of us are preparing to file our taxes, scammers are also gearing up to take advantage of unsuspecting seniors and family caregivers. Tax scams are not only frustrating, but they can also lead to financial ruin if not addressed properly.
Therefore, it's essential to be aware of the most common scams targeting this vulnerable group and take steps to protect oneself. In this blog post from Senior Helpers Moanalua-Honolulu, we will discuss some of the most frequently encountered tax scams that target seniors. We’ll also share tips on how to recognize and avoid them, ultimately safeguarding not only your finances but also your peace of mind.
Most Common Tax Scams Targeting Seniors and Family Caregivers
Here are three of the most common tax scams targeting seniors.
IRS Impersonation Phone Calls
One common tax scam involves criminals impersonating IRS agents over the phone. Scammers may call seniors or their caregivers, claiming they owe back taxes and demanding immediate payment. They may even threaten legal action if the payment is not made. To determine if the call is fraudulent, remember that the IRS will never call you without first sending a written notice. Also, the IRS will never demand immediate payment or threaten legal action over the phone.
Email Phishing Scams
Phishing scams often take the form of emails that appear to be from the IRS or another tax authority. These emails may contain links to fraudulent websites or attachments designed to steal personal information. Signs that an email is fraudulent include poor grammar, spelling errors, or requests for personal information that the IRS would not typically require. Remember that the IRS will never initiate contact with you through email, text, or social media.
Fake Tax Preparers
Some scammers pose as tax preparers to steal personal information from unsuspecting seniors and caregivers. These fake preparers may promise large refunds or use confusing tax jargon to gain your trust. To avoid falling victim to this scam, research the tax preparer's credentials and reputation before hiring them. The IRS provides a directory of authorized tax preparers on its website.
Preventing Tax Scams
Education and awareness are crucial in preventing tax scams that target seniors. Make sure to inform seniors and their caregivers about these common scams and their warning signs. Encourage them to verify the legitimacy of any communication before responding or providing personal information. It's also essential to use a trusted tax preparer or software to ensure that personal information is handled securely.
What to Do if a Senior Falls Victim to a Tax Scam
If your senior loved one falls victim to a tax scam, here's what you can do about it.
- Report the scam to the appropriate authorities, such as the IRS or local law enforcement.
- Take steps to protect personal information and finances, like monitoring credit reports and changing passwords to online accounts.
- Seek professional assistance, such as legal or financial advice, to help recover from any losses incurred as a result of the scam.
Senior Helpers Provides Personalized Support for Seniors
Tax scams that target seniors and family caregivers are a pervasive issue, but being aware of the warning signs and knowing how to address them can significantly mitigate the risks. If you are a caregiver or senior located in Honolulu or Fort Shafter, Hawaii, and need assistance in navigating the challenges of senior care, contact Senior Helpers Moanalua-Honolulu. Our experienced team is here to provide support, resources, and peace of mind in facing everyday challenges and unique situations.