Authorities are alerting Americans to be vigilant against a new scam aimed at deceiving taxpayers into thinking they are signing up for a stimulus check.
What is this new tax scam about?
The Better Business Bureau, a consumer advocacy organization in the U.S., has issued a warning that scammers are distributing SMS messages that appear to be from the Internal Revenue Service (IRS), as part of a phishing scheme designed to trick individuals into giving away their personal information.
This scam is linked to the IRS’s recent declaration of issuing automatic payments to taxpayers eligible for a stimulus check of up to $1,400 in 2021 who did not claim this amount on their federal tax return for that year.
What’s the stimulus check involved in the scam?
Part of the American Rescue Plan—a $1.9 trillion COVID-19 relief bill signed by former President Joe Biden in early 2021—the stimulus checks were automatically distributed to eligible taxpayers who filed a federal return in the preceding year.
Officially referred to as Economic Impact Payments, those checks could also be claimed by individuals who did not submit a return in 2020 by applying for the Recovery Rebate Credit in their next federal tax filing.
In December, the IRS announced that it had identified around one million taxpayers eligible for the stimulus check who failed to fill out the Recovery Rebate Credit form in their 2021 tax returns. The agency noted it would start distributing these payments to affected Americans, either through direct deposit or paper checks.
According to the IRS, taxpayers who have not filed a 2021 tax return might also qualify for the stimulus payment. “They have until April 15, 2025, to submit their returns to claim the credit,” the agency stated.
How does the stimulus check scam operate?
As detailed by the Better Business Bureau, scammers are sending SMS messages that imitate the IRS and claim that the recipient is eligible for a $1,400 stimulus check.
The recipient of the text is prompted to click on a link that directs them to a counterfeit IRS website, where they are asked to provide personal information to receive the stimulus payment.
Do not be deceived by this. The IRS has clarified that payments will be issued without recipients needing to take any action. Additionally, the agency emphasized that they will inform beneficiaries about their payment through a letter, not via SMS.
IRS resources to avoid tax scams
To assist taxpayers in avoiding tax scams, the IRS website features a page with guidelines on how to identify fraudulent messages. The agency has also outlined the methods it will and will not use to contact you.
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