In light of today’s federal income tax deadline, Orange County Tax Collector Scott Randolph is reminding residents to be on the lookout for tax scams, especially last-minute ‘phishing’ email scams and identity theft scams. According to the IRS, identity theft by scammers who file fraudulent tax returns using a victim’s Social Security number is the nation’s most costly tax scam. The federal tax agency estimates such scams have cost taxpayers $26 billion between 2012 and 2016. Additionally, the IRS saw a 400% surge in phishing and malware incidents in the 2016 tax season.

“The statistics are scary. Tax fraud is real and it’s becoming more and more common,” Orange County Tax Collector Scott Randolph said. “The best way to protect yourself from these criminals is to know the warning signs of a scam and take immediate action if you’ve been victimized.”

Taxpayers should be alert to possible identity theft if they are contacted by the IRS or their professional tax provider about:

• More than one tax return being filed under their Social Security number;
• If they owe additional tax;
• If they have a collection action taken against them for a year in which they did not file a return; or
• IRS records indicate that they received income from an employer for whom they did not work.

The IRS is also urging taxpayers to be on guard against email scams requesting last-minute deposit changes for refunds or account updates. These phishing emails generally urge taxpayers to give up sensitive, personal information such as their Social Security number, online passwords and bank information.

Phishing emails are designed to trick taxpayers into thinking they are official communications from the IRS and may seek specific information related to one’s refund, filing status and personal identification number (PIN). Recipients of suspicious emails are reminded to never open an attachment or link from an unknown source, and to forward phishing emails to phishing@irs.gov for investigation.

Randolph said scammers can be very aggressive when contacting a potential victim and often communicate in a threatening tone. Many scammers will demand immediate payment, oftentimes through a pre-paid debit card or wire transfer, and threaten law enforcement action if a victim does not make a payment over the phone.

“The most important thing to remember is that the IRS will never ask for a credit card number over the phone. If someone does, that’s a sign that they’re trying to scam you,” Randolph said.

If you feel you’ve been the victim of an identity theft tax scam:

• Contact your local police department or the Sheriff’s Office to file a report;
• Report the incident to the three major credit bureaus, Equifax at 1-888-766-0008, TransUnion at 1-800-680-7289 and Experian at 1-888-397-3742;
• Contact your bank or financial institution and report the incident to your creditors; and

File a complaint with the Federal Trade Commission at www.identitytheft.gov.