As seniors and family caregivers navigate the complex world of taxes, it's crucial to be aware of potential tax scams that specifically target these vulnerable groups. Scammers often prey on seniors, who may not be as tech-savvy or familiar with tax laws and regulations.
Most Common Tax Scams
Here's a look at some of the most common tax scams used by bad actors:
1. IRS Impersonation Phone Calls
Scammers often pose as IRS agents, making unsolicited phone calls to seniors and demanding immediate payment for supposed tax debts. These calls can also be aggressive and threatening, with scammers warning of severe legal consequences if payment is not made right away.
2. Email Phishing Scams
Phishing emails might appear to be from the IRS or other tax-related organizations, but they're actually from scammers trying to steal personal information. Additionally, these emails often contain links to fake websites or malicious attachments. These gain access to your senior loved one's computer and sensitive data.
3. Fraudulent Tax Return Filing
In this type of scam, thieves use stolen personal information to file fake tax returns in a senior's name. The senior may not be aware of the fraudulent activity until they attempt to file their legitimate tax return. This is when they discover that a return has already been filed under their Social Security number.
4. Tax Preparer Fraud
Some unscrupulous tax preparers may take advantage of seniors by inflating deductions, claiming false credits or even stealing their clients' refunds. Be cautious when selecting a tax preparer and look for reputable professionals with solid credentials.
Signs of a Fraudulent Communication
Here are some signs that seniors need to consider:
- Unsolicited phone calls or emails claiming to be from the IRS
- Requests for immediate payment or personal information, such as Social Security numbers
- Threats of legal action, arrest, or other dire consequences for non-payment
- Poor grammar or spelling in emails, indicating that the communication is not from a professional source
How to Ensure Seniors Don't Respond to Scam Messages
There are a few ways to help your senior avoid these scams:
- Educate seniors about common tax scams and signs of fraud, so they can recognize and avoid scams.
- Encourage seniors to consult with a trusted family member or caregiver before responding to any tax-related communication, as a second opinion can help identify potential scams.
- Advise seniors never to provide personal information or make payments over the phone or through email, as the IRS will not request such information through these channels.
Broaching the Topic With Seniors
Approach the conversation with empathy and understanding, acknowledging the potential embarrassment or fear that seniors may feel when discussing potential scams. You can share personal stories or news articles about tax scams to help raise awareness. This illustrates that they are not alone in being targeted by scammers. In addition, you want to reassure your senior relative that it is okay to ask for help and that they have support in addressing any potential scams or mistakes they may have made.
What to Do if a Senior Has Fallen Victim to a Tax Scam
Here are a few steps to take if your senior loved one has become the victim of a tax scam:
- Report the scam to the IRS and local law enforcement immediately. They can help track down the scammers and potentially recover any stolen funds.
- Assist your senior loved one in placing a fraud alert on their credit reports to help prevent any further damage from identity theft.
- You should help them monitor their financial accounts for any suspicious activity and work with them to resolve any issues that arise.
- Work with a reputable tax professional to resolve any tax-related issues caused by the scam. You want to make sure that the tax obligations are properly addressed.
Senior Helpers Frederick Assists Seniors in a Variety of Ways
Being aware of the tax scams that target seniors and family caregivers is essential in protecting your loved ones and their finances in Frederick, Hagerstown, Thurmont, or Middletown, MD. Senior Helpers Frederick can help seniors with their emails, take them to the bank, and offer support in many ways. Contact us today!