TAX SCAM ALERT: Reed Warns RIers About Surge of Tax Scams

WASHINGTON, DC –April 15 is the deadline for tax filing, and with it comes the high season for tax scams.
U.S. Senator Jack Reed is warning Rhode Islanders to be wary of any unsolicited text, phone call, or social media post that claims to be from the Internal Revenue Service (IRS). Reed says Rhode Islanders should be aware of common tax season scams, which are unfortunately becoming both more frequent and sophisticated as scammers use emerging AI, technology, and social media tactics.
Hundreds of thousands of Americans become victims of tax-related identity theft each year. And nearly one in four Americans have reported being impacted by a tax scam in some way,according to a McAfee survey.
Reed also notes that the Trump Administration’s recent changes to the tax code are making Americans especially vulnerable this year because there is confusion around eligibility for certain new deductions or credits -- and scammers are seizing on that to try to target people and take advantage. Additionally,the Trump Administration’s partisan decision to end the highly successful Direct File program– which saved taxpayers time, money, and reduced the likelihood of tax scams – means more people are likely to get scammed this year by unscrupulous third-party, for-profit vendors. Direct File was built by the IRS to allow people with relatively simple returns to file them online without using, and paying for, third-party software.
Senator Reed highlighted several red flags to spot tax scams: The IRS will not contact you via social media, demand immediate payment, or offer to payout your refund over the phone. It will never threaten to call law enforcement; demand your driver’s license number or business license; request immediate payment through gift cards, wire transfers or crypto; or direct taxpayers to a non-IRS website.
Senator Reed stated: “Scammers are thieves. They are often part of larger criminal enterprises who target and exploit vulnerable Americans, especially older Americans or people who don’t consider themselves tech savvy. These scammers are sophisticated at impersonating the IRS or other entities and stealing people’s money. Don’t let it be yours. Protect yourself and loved ones by understanding a few key scam prevention fundamentals. The IRS will not contact you via social media, demand immediate payment, or offer to payout your refund over the phone, or threaten to call law enforcement. By definition, the IRS has your mailing address, can put things in writing, and does not use pressure tactics to force taxpayers into making spur of the moment decisions. If you feel you are being rushed and something seems suspicious, it is. Never click on links or share personal information with an unknown source. If someone claiming to be from the IRS cold-calls your cell phone seeking payment or personal information, it is okay to tell them: ‘You have my address, send me a letter’ and hang up on them. Period. That’s not rude – it’s being vigilant and protecting your identity and money. And if you get a piece of mail that seems suspicious, don’t just call the number on the letter, go right to IRS.gov and use the information there to contact someone at the IRS and verify the authenticity.”
Senator Reed cited a new, bipartisanTax Scam Alert by Congress’ Joint Economic Committee (JEC)that sounds the alarm on some of the most pervasive tax scams this season, including IRS Impostor Scams. Often initiated by phone calls or via emails or texts using spoofed caller ID or addresses purporting to be from the IRS, these fraudsters claim to be IRS employees who say you owe taxes or they need information to verify your refund. Victims are typically directed to click a link, scan a QR code, or visit a fake website – that looks real, but is not IRS.gov -- where they’re asked to provide personal information, such as a Social Security number or bank accounts.
The red flag to remember is the IRS does not initiate contact for requests like this through unsolicited emails, texts, or social media and their employees do not pressure people or try to create a false sense of urgency and confusion. If the request is legitimate, the IRS can send it to you via your mailing address.
How to protect yourself from tax scams
Senator Reed says that if you received a suspicious e-mail, text, or contact from someone impersonating the IRS or U.S. Treasury, you can report it to the IRS:https://www.irs.gov/help/report-fraud/report-fake-irs-treasury-or-tax-related-emails-and-messages
The federal government also uses the Federal Trade Commission’s (FTC)https://reportfraud.ftc.gov/as a clearinghouse where people can report fraud, scams, and bad business practices.
Taxpayers can verify any communications that are purported to be from the IRS with the IRS directly, by:
Lastly, Senator Reed says, if you do get scammed, don’t be ashamed: report it to the proper authorities, including local law enforcement.
“These scammers are really sophisticated. There is no shame in getting tricked by criminals. If you report the crime or suspicious activity to the police, IRS, and FTC then you can help increase the odds that the bad guys will get caught and prevent others from becoming victims,” concluded Reed, who noteshis office is available to help and can also submit requests to the IRS on behalf of Rhode Islanderswho are having difficulty reaching the proper IRS contact or if the IRS is not being responsive to their needs. However, while Senator Reed can help with connecting Rhode Islanders to the agency, he has no bearing on the outcome of the IRS’s decisions regarding individual cases.
At the state level, the Rhode Island Division of Taxation also never contacts taxpayers via text message regarding bills, balances, or refunds. To report state tax scams, visit:https://tax.ri.gov/guidance/fraud-guidance