Tax-Related Scams

Protecting yourself during ‘tax season’ by avoiding scams and potential issues that may take days or weeks to discover and deal with.

“Back Taxes” Scam

Scammers are calling consumers and claiming they owe back taxes. They say they are representatives from fake companies or organizations like the “Tax Resolution Oversight Department” or “Tax Mediation and Resolution Agency”. They state the consumer has not paid their taxes, and offer to help. They ask for personal information or up-front payments, which could result in the consumer losing money or compromising their identity.

Consumers report being pressured to give up their money or personal information through tactics like “limited time offers” or claims from the scammers that “this will be our only attempt to reach you.” If a consumer receives a call from a “tax resolution officer” who wants to perform a “red flag check” or help them apply for an “IRS liability reduction program,” these are all warning signs of a scam.

Even if a consumer does owe back taxes, the IRS will first contact them by mail – not a cold call. Consumers can directly contact the IRS at IRS.gov or the Wisconsin Department of Revenue at revenue.wi.gov for trustworthy information about their tax situation.

Tax Preparation Tips to Avoid Scams

It’s tax season, and consumers across Wisconsin are getting ready to file. What other considerations should they make to avoid scams and protect their money and identity?

· File as soon as possible to avoid the possibility of an identity thief beating you to it.

· Sign up for federal and state Identity Protection PINs, which add an easy extra step to the tax filing process that protects against tax-related identity theft, at the IRS and DOR websites.

· Be careful of phishing scams sent by text, email, or direct message. They try to collect consumers’ private information by scaring them, offering incentives, and impersonating real government agencies.

o One common example: Texts or emails claiming to come from the IRS or Wisconsin Department of Revenue which say they have “processed” or “approved” a consumer’s tax refund, but must now “verify their identity” before the money can be sent. If consumers click the link provided, they are asked to provide their Social Security and bank account numbers. This is a scam!

· Do not listen to social media posts claiming that ‘easy tricks’ or ‘secret tax credits’ can increase the amount of your tax return – these are often promoting scams or fraud.

· Avoid “ghost tax preparers,” someone who prepares tax returns without proper certification.

o An individual who professionally prepares federal tax returns must have a valid 2026 Preparer Tax Identification Number (PTIN).

o Their trick to getting around certification: Ghost tax preparers do not sign the returns they file. Instead, they convince the consumer to sign, which makes it appear as though they filed it themselves – making the taxpayer liable for any mistakes.

o Ghost tax preparers might move quickly from area to area, promise to provide big refunds, or offer other benefits to solicit business. Avoid preparers that pressure consumers to “act now” or make too-good-to-be-true offers.