Attorney General Knudsen encourages Montanans to beware of tax scams

HELENA – Attorney General Austin Knudsen is encouraging Montanans to be on high-alert for scammers trying to take advantage of them during tax season. The Department of Justice's Office of Consumer Protection (OCP) has received 44 calls related to tax scams since January 2021.

"Montanans pay enough in taxes without being scammed while trying to file their paperwork. It's more important than ever to be on the lookout for fraudsters trying to take advantage of you as we're right in the middle of tax season," Attorney General Knudsen said. "Learn to spot the signs of a tax scam to protect yourself – and never give out personal information over the phone unless you're absolutely sure who you are talking to."

In most instances, the scammer will call or email claiming to be from the Internal Revenue Service (IRS) and provide a badge number and may even know the victim's social security number. The calls will typically come from a spoofed number or a number with a Washington D.C. area code. It's very common for scammers to tell the victim they are eligible for a tax debt relief program or ask for money via a prepaid debit card or gift card to resolve owed back taxes. Many times, the scammer will also ask for personal information to verify a tax account or take care of legal action being taken against the consumer.

Keep these tips in mind to avoid becoming the victim of a tax scheme:

File your taxes yourself and it as early as possible. You can file tax returns electronically or on paper.

If you're using a tax preparer, pay them prior to filing. Many preparers charge higher fees when deducting the cost of preparations from your refund.

Avoid refund advances. No one can guarantee to obtain your refund from the IRS faster than you can. Tax refund advances are actually loans from your preparer, and like almost any loan, will cost you additional fees to receive.

Consider direct deposit rather than a mailed check for your refund.

If you believe you've been a victim of tax-related identity theft:

 Contact the IRS immediately

 Place a fraud alert on your credit reports with TransUnion, Experian, and Equifax

 File a police report

 Fill out an Identity Theft Passport application

Calls from the IRS regarding owed back taxes will be from CBE Group INC., Coast Profession, Inc., or ConServe and prior to receiving a phone call consumers will receive two letters – Notice CP40 and Publication 4518 – to notify them that their overdue taxes have been referred to a private collection agency. The letters will contain a Taxpayer Authentication Number used to confirm their identity and confirm the legitimacy of the caller. Never give the caller information, without receiving a letter from the IRS first. The collection agency will never threaten the consumer or ask for payment through prepaid cards or money transfers. To report a collection agency that acted inappropriately visit: https://www.treasury.gov/tigta/reportcrime_misconduct.shtml.

Montanans may become victims of fraudulent tax filings if they have experienced identity theft. If an electronic tax return is rejected due to another filing, fill out and file a Form 14039. Find more information here.

Last year, the Office of Consumer Protection fielded 945 scam complaints and successfully saved Montanans from losing more than $1.3 million, including $869,600 that was recovered for Montanans who were victimized by scammers and $465,579 in prevented loss for consumers who called inquiring about whether they were being scamme