Every year around this time the fraudsters come out looking for easy prey.  They send e-mails that look genuine (some are very convincing) telling you that you have an unclaimed tax refund.  The e-mail appears to be from the Internal Revenue Service (IRS) or the California Franchise Tax Board (FTB).  Some fraudsters will send text messages or try to contact you through Facebook or other social media websites.  The real intent of the messages is to get you to release your personal information that they can use.  The tax agencies call it “phishing.”

The IRS warns taxpayers:  “The IRS does not initiate contact with taxpayers by e-mail to request personal or financial information.  This includes any type of electronic communication, such as text messages and social media channels.”  If you receive an unsolicited communication from the IRS you should report it the IRS.  Don’t click on any links or respond in any way to the message.  You can forward the message to the IRS at a special e-mail address set up just for this type of activity.  The e-mail address is phishing@irs.gov .  You can read more about what to do when you receive a suspicious message at the IRS website on a page dedicated to this type of activity at www.irs.gov/uac/Report-Phishing.

The FTB has reported an upsurge in e-mail scams.  However, they note that not all scams are limited to e-mail.  There are phony letters going around that tell taxpayers their return may be audited.  The letters typically have phone numbers and addresses outside the state.  Many also have typographical and grammatical errors.  Another scam perpetrated in California is on corporations.  The corporation will receive a letter from a “Compliance Annual Minutes Board” that cites California Corporations Code sections.  The recipients are asked to pay a fee.  The letters look very official, but again, it is just another way the fraudsters are out to get money.

It’s easy to fall for one of these scams.  Any communication from the IRS or FTB can make your heart start to race.  That’s when you may not notice some of the more obvious errors in the communication and be tempted to contact the sender.  Don’t do it!  If you receive a communication from one of the tax agencies, or some other entity that appears official, make a call to one of the tax experts at Seid & Company, CPAs.  We’ll let you know if it’s real or just another scam.