In 1789, the incomparable Ben Franklin wrote, “…in this world nothing is certain, except death and taxes.” Undoubtedly, this is just as true today as it was 236 years ago; however, a more current phrase might be, “nothing in this world is certain, except death, taxes, and tax scams!”

Tax season is often met with anticipation and apprehension. Some might see the prospect of a tax refund as a much-needed financial boost. For others, the season is filled with the anxiety of meeting their tax obligations. In any event, scammers see the tax season as a prime opportunity for manipulation.

Every year, Americans fall victim to tax scams resulting in significant financial losses. Members of our community must exercise caution as they prepare to file their taxes to avoid becoming a victim. So, what can you do to protect yourself?

• Keep your personal information confidential- Do not give your personal information to anyone who does not have a legitimate reason to have it.
• File your taxes as early as possible- This will help prevent scammers from using your personal information to file a fraudulent return.
• Use Secure Internet Connections- Do not file your taxes over a public Wi-Fi. Only use secure private networks for financial transactions and consider using a VPN to encrypt online data.
• Use Verified Tax Preparers- Search for a qualified and credentialed tax professional at https://irs.treasury.gov/rpo/rpo.jsf
• Use strong passwords- Whether you file directly with the IRS or through a third-party (Turbo Tax, H&R Block, etc.), use strong, unique passwords and keep your passwords confidential.
• Beware of Artificial Intelligence (AI)- Law enforcement expects scammers to significantly ramp up the use of AI. Use of AI technology can significantly reduce Red Flags, making it much more difficult to detect a scam.
• Know how the IRS will contact you-
  • The IRS will typically contact you the first time through regular U.S. mail delivered by the U.S. Postal Service. To verify the IRS sent the letter or notice, you can search for it on gov.
  • The IRS may also contact you via:
    • Email – only with your permission
    • Text message – only with your permission
    • Phone – The IRS may call to discuss your case
    • Fax – The IRS may send a fax to verify or request employment information
    • In-person visit – These are rare, and the IRS generally sends a letter beforehand
  • The IRS will not:
    • Contact you or take payment on social media
    • Accept gift cards or prepaid debit cards as payment
    • Threaten to call law enforcement or immigration officials
    • Take your citizenship status, driver’s license, or business license
    • Leave pre-recorded voicemails (robocalls)
    • Mail tax debt resolution advertisements

Scammers look for every opportunity to take advantage of us; therefore, we must be aware of the dangers and take appropriate precautions. We encourage you to visit https://www.irs.gov/help/tax-scams for more information on how to identify and respond to Tax Scams. Report an unsolicited email claiming to be from the IRS at phishing@irs.gov.

If you have any questions about ways to protect yourself or have received a suspicious communication, please reach out to a Member Services Representative before you share information with any unidentified third party.

Thank you for being an important part of the MC Family!

Elba Arenas
President & CEO
MC Federal Credit Union