With the April 15 income tax filing deadline looming and the Internal Revenue Service expecting more than 140 million individual returns this year, the Better Business Bureau of Central & South Alabama is warning taxpayers to stay alert for a surge in tax-related scams.

“Tax season is prime time for scammers,” Evey Owen, vice president of the Better Business Bureau, said in a news release. “We’re seeing everything from IRS impersonation calls to phishing emails and an uptick in ‘ghost preparers.’ With all the advances in AI, it’s more important than ever for consumers to stay alert.”

COMMON SCAMS ON THE RISE

One of the most frequent scams involves IRS impersonation, the release said. Fraudsters call taxpayers claiming they owe back taxes and demand immediate payment through prepaid debit cards, wire transfers or mobile apps like Venmo. Some promise refunds in exchange for personal information, which can be used for identity theft.

Another growing concern is “ghost preparers,” individuals who prepare tax returns but refuse to sign them or provide a valid Preparer Tax Identification Number. This practice can put taxpayers at risk of fraud or identity theft.

Tax identity theft also remains a significant threat. Scammers use stolen Social Security numbers to file fraudulent returns and claim refunds. Victims often only discover the theft when filing their return or receiving unexpected notices from the IRS.

HOW TO SPOT A SCAM

The BBB reminds taxpayers that the IRS usually contacts taxpayers by mail, not by phone, email or text messages. The agency does not leave urgent or threatening prerecorded messages, demand immediate payment or threaten arrest.

Phishing emails often contain poor grammar, awkward phrasing, unusual formatting or urgent language. Official IRS communications are professionally written. When in doubt, taxpayers should stop all communication and contact the IRS directly using the information on its official website.

TIPS FOR STAYING SAFE

The BBB offers several recommendations to help taxpayers protect themselves:

• Use an IRS Identity Protection PIN: This six-digit pin confirms a taxpayer’s identity and must be provided each year when filing a tax return.
• Be cautious of unsolicited messages: Misspellings, poor grammar or awkward phrasing are red flags for scams.
• Verify websites: Only file taxes through IRS-approved websites. When uncertain, contact the IRS toll-free.
• Use a qualified tax professional: Preparers should have a valid PTIN issued by the IRS. CPAs should also hold state-issued credentials. Ask questions about experience, accreditation and BBB membership.

“Trust your instincts,” Owen said. “If something feels off, take a step back and verify before taking any actions.”

For more information or to report a scam, visit www.BBB.org/TaxTips.