Tax season is here, and it’s crucial to remain vigilant against the various scams that target unsuspecting taxpayers. Scammers are becoming increasingly sophisticated, so it’s important to know the warning signs to protect your personal information and hard-earned money. Here are some of the most common tax season scams to watch out for, along with tips on avoiding falling victim to these schemes.

 

1. Phishing Scams

Phishing scams involve fraudulent emails or text messages that appear to be from legitimate sources, such as the South African Revenue Service (SARS). These messages often contain links to fake websites that steal your personal and financial information.

How to Avoid:

  • Always verify the sender’s email address or phone number.
  • Never click on links or download attachments from unknown sources.
  • Visit the official SARS website directly by typing the URL into your browser.

 

2. Phone Scams

Scammers might pretend to be from SARS, threatening legal action or arrest unless you immediately pay a supposed tax debt. These calls can be very persuasive, often using aggressive tactics to create urgency.

How to Avoid:

  • Remember that SARS will never demand immediate payment over the phone.
  • If you receive such a call, hang up and contact SARS directly using a number from their official website.

 

3. Identity Theft

Identity thieves might use your stolen personal information to file fraudulent tax returns in your name, claiming refunds that rightfully belong to you. This can cause significant delays and complications when you attempt to file your legitimate tax return.

How to Avoid:

  • Keep your personal information secure, especially your ID number and tax documents.
  • Use strong, unique passwords for your online accounts and change them regularly.
  • Monitor your credit report for any suspicious activity.

 

4. Tax Preparer Fraud

While most tax preparers are honest professionals, some may take advantage of their clients. Dishonest preparers might charge exorbitant fees, steal refunds, or falsify information on your return to increase their profit.

How to Avoid:

  • Choose a reputable tax preparer with verifiable credentials and positive reviews.
  • Ensure you understand the fees upfront and that they are reasonable.
  • Review your tax return thoroughly before signing and submitting it.

 

5. Fake Charities

Scammers often exploit people’s generosity by creating fake charities to solicit donations, especially during tax season when taxpayers are looking for deductions.

How to Avoid:

  • Verify the legitimacy of the charity through SARS or a reliable charity watchdog.
  • Never make donations in cash or via wire transfer.

 

6. Refund Scams

Scammers often use social media or email to deceive victims with false promises of a larger tax refund in exchange for a fee or personal information.

How to Avoid:

  • Be wary of anyone promising guaranteed refunds or unusually large refunds.
  • Always seek tax advice from a qualified professional.

 

Protect Yourself This Tax Season

At Xena Accounting, we prioritise your financial security and peace of mind. By staying informed about common scams and taking proactive measures to protect your information, you can ensure a safe and smooth tax season. If you have any concerns or need assistance with your tax preparation, please don’t hesitate to contact our team of experts.

Stay safe, stay informed, and let us help you navigate this tax season with confidence.