How To Avoid Tax Scams This Season In Rockford

Maybe it's me, but didn't we just do this whole "pay your taxes thing" last year? Wait...I'm being told that it's something we have to do every year. Fine.

Tax season officially opens on Monday, January 26th, and with new tax code changes this year, the Rockford Regional Office of the Better Business Bureau (BBB) is urging Rockford residents to be extra vigilant. Con artists are ready to exploit the pressure and anxiety that come with filing taxes, and their schemes can cost you money, your bank account, and even your identity.

Dennis Horton, Senior Director of the Rockford BBB:

We expect tax scammers to be especially aggressive this year. They will come out of the woodwork to cash in on you.

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Here's How Some Of The Current Tax Time Scams Work

Scammers often start with fear because fear has been proven to work.

Impersonating IRS agents via phone calls, emails, texts, and letters, they pressure unsuspecting taxpayers to act fast. Some claim you owe back taxes, while others promise a fast refund if you provide sensitive information. In many cases, the scammers even use fake badge numbers or spoofed Caller IDs to appear official.

Tax identity theft continues to be a growing problem. Scammers can file tax returns using your Social Security number, sometimes obtained through phishing emails, data breaches, or even shady tax preparers who set up temporary storefronts in neighborhoods. Victims often don’t realize they’ve been targeted until they file their own return, or even later. In 2023 alone, taxpayers lost $5.5 billion to tax scams and fraud, according to the IRS.

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Let's Look At Some Ways For You To Avoid Becoming The Victim Of A Tax Scam

Tax scams can be intimidating, but staying informed and cautious is the best defense. The BBB points out that by following these steps and keeping a watchful eye, Rockford taxpayers can protect their money, identity, and peace of mind this tax season:

Hire carefully: Always check a tax preparer’s credentials and reviews at BBB.org. Avoid anyone promising unusually large refunds or “fast” returns.
File early: Submit your return as soon as possible to reduce the window for scammers to act.
Verify contacts: If someone claiming to be from the IRS reaches out, contact the agency directly rather than using any numbers or links they provide. The IRS will never demand immediate payment, request specific forms of payment, or ask for credit/debit card information over the phone.
Protect your information: Only give your Social Security number to trusted parties and review your tax return before submitting it to ensure accuracy.

Other key precautions include avoiding refund anticipation loans, insisting that refunds go directly into your personal accounts, and making sure your tax preparer remains available in case of IRS questions or audits.