Tax season represents a stressful time for many individuals, but seniors are especially vulnerable to tax scams with potentially devastating consequences. With nearly $6 billion stolen from unsuspecting Americans in 2022, it’s important that seniors know how to avoid these scams.
In this blog post, we'll explore typical tax schemes targeting seniors, share helpful resources to help educate your loved ones and discuss ways to maintain their independence while ensuring safety from potential scams.
Identifying Tax Scams Targeting Seniors
Awareness of the common tax scams will help you protect and defend your senior relatives. Take a look at a few of the most prevalent schemes below:
- IRS impersonation phone calls: Scammers pose as IRS agents, often using fake caller ID information, and claim that the senior owes back taxes. They may also threaten legal action, arrest, or deportation if they don't receive immediate payment.
- Email phishing scams: Fraudsters send emails pretending to be from the IRS or a tax professional, asking for personal or financial information. These emails often contain links to fake websites that steal the victim's data.
- Fraudulent tax preparers: Some scammers pose as tax preparers and promise large refunds, only to steal personal information or file false tax returns.
To Help Your Senior Relatives Identify Such Scams, Make Them Aware of Some Red Flags:
Make sure to discuss with your parents or other senior loved ones what they need to watch out for when it comes to tax scams.
- Unsolicited contact from the IRS, primarily via phone or email
- Requests for personal information, such as Social Security numbers or bank account details
- Threats of immediate legal action or demands for payment via gift cards or wire transfer
Educating Seniors About Tax Scams
Knowledge is power, so sharing information and the warning signs of tax scams with your senior loved one represents the first step in keeping them safe from these fraudulent schemes. Additionally, make sure to provide your senior loved one with the resources they may need for protection against tax scammers:
- The IRS website (irs.gov) offers a wealth of information on tax scams and consumer alerts.
- AARP Fraud Watch Network (aarp.org/money/scams-fraud) focuses on scams targeting seniors, including tax scams.
- The Federal Trade Commission (FTC) website (consumer.ftc.gov) provides valuable tips on how to avoid scams and protect personal information.
Encourage your senior relatives to ask questions and seek advice if they're unsure about a tax-related situation. Remind them that it's better to be cautious than to fall victim to a scam.
Broaching the Topic of Third-Party Tax Assistance
Employing a reputable tax professional will lessen the chances of your senior family member falling prey to a tax scammer. When discussing this option, emphasize the benefits of professional tax help, such as ensuring accurate and timely tax filings and reducing their likelihood of encountering scammers.
When choosing a tax preparer, it's essential to verify their credentials and certifications, read reviews, and ask for recommendations from friends or family members. Involving your senior relatives in the selection process allows them to maintain control over their finances.
Once you've chosen a reliable tax professional, encourage seniors to stay involved in the tax preparation process and ensure they retain access to and understand their tax documents. This way, they remain in control and better protected from potential scams.
Additional Precautions to Protect Seniors From Tax Scams
In addition to educating your senior relatives and involving a tax professional, you'll want to review the steps below to protect them from tax fraud:
- Encourage them to file their taxes early, as this decreases the chances of a scammer filing a fraudulent return in their name.
- Implement strong passwords and security measures for their online accounts, including email and financial institutions.
- Regularly monitor their credit reports and financial accounts for any suspicious activity.
We Can Help
We understand the importance of protecting your senior loved ones from tax scams while maintaining their autonomy. By educating them about potential risks, providing resources, and involving reputable third-party tax assistance, we'll help safeguard their financial security without taking away their independence. If you live in Charleston, Mt. Pleasant, Moncks Corner, James Island, or Daniel Island, contact Senior Helpers Charleston for all your senior care needs. Our compassionate and experienced team provides invaluable support and assistance, ensuring the safety and well-being of your senior loved ones.