With Tax Day around the corner, state Attorney General Ashley Moody is alerting Floridians to fraudulent schemes.
In 2022, Internal Revenue Service (IRS) data showed consumers losing $5.7 billion to tax scams and fraud. Key areas the AG is warning consumers to deal with are pre-filing scams, tax debt relief scams, and direct deposit refund scams.
“Scammers may look to exploit the stress many may feel when preparing their taxes to steal personal and financial information, so I am releasing this series to help Floridians avoid falling prey to fraudsters,” said Moody.
Government data reveals that between 2021 and 2022, the number of fraudulent tax refunds identified by the IRS increased from about $16 million to more than $800 million, commonly occurring through pre-filing schemes the AG is warning about.
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Here’s how the schemes work: When individuals pre-file their taxes, scammers target them by first acquiring a victim’s name and SSN. Then, the schemers file their returns in the target’s name to collect refunds. When taxpayers wait to file returns, scammers have more time to exploit potential victims.
Another scam is Tax Debt Relief Scams. Scammers may claim to be representatives of a company offering to settle tax obligations for pennies on the dollar. The schemers request upfront payments and then disappear.
Direct Deposit Refund Scams: Scammers may call, text, or email potential victims posing as IRS agents, claiming a mistake was made with the person’s tax return. The fraudsters then demand the victim must refund the money immediately, usually in the form of a wire transfer or gift card.
The Florida Attorney General’s Consumer Protection Division says consumers should alert their office if they feel they have been taken advantage of.
Report tax scams or other fraud to the Federal Trade Commission at ReportFraud.FTC.gov. or MyFloridaLegal.com.
