The IRS keeps sending out multiple warnings about the various ways people can scam you out of your money. The newest method is through the advance child tax credit payments, which the IRS only recently began sending to eligible households.
The government is paying out Child Tax Credits of up to $3,600 to eligible families. The IRS is sending out these payments in two installments; the first in advance monthly payments starting July 15th, and the second after you file your 2021 tax returns.
Since last week, millions of American homes began receiving their Child Tax Credit payments. And criminals have already figured out a dozen ways to take advantage of unsuspecting taxpayers. The scammers target all eligible families, so pay attention to various scams via text messages, phone calls, emails, and social media if you’re expecting this tax credit.
How to Spot Tax Scams
While tax scammers appear to be very active and creative this year, there are a few tips you should keep in mind to avoid getting scammed.
The IRS will never contact you over email, text message, or social media to request personal information.
Have you ever received a very threatening voicemail from “The IRS”? Don’t worry. The real IRS would never call or leave you a voicemail regarding lawsuits and arrests. Neither will they ask you to verify personal information to receive credit over the phone or instant messages.
The only acceptable way to send payments to the IRS is via snail mail or through the official online direct payment service. The IRS will never require you to send payments over through a wire transfer, gift card, or cryptocurrency.
The IRS also released a list of the most popular scams in 2021, emphasizing COVID-19 related tax credits, payments, and benefits.
To find out more about filing your taxes, visit Landmark Tax. We’ll help you stay up-to-date on all things tax or arm you with financial planning tips and tricks. Contact a licensed tax preparer today.