Taxpayers need to be vigilant about a new “smishing” scam that could potentially cost them up to $1,400 or result in compromised personal information.
Importance of Awareness
Scams can lead to significant financial losses for U.S. taxpayers, potentially causing severe monetary strain. The frequency of scams typically rises during the annual tax-filing period, which began for 2024 returns on January 27.
Key Information
Fraudsters posing as representatives from the Internal Revenue Service (IRS) have been sending text messages to taxpayers, soliciting personal information in exchange for Economic Impact Payments (EIP), also referred to as the Recovery Rebate Credit (RRC).
“Smishing” refers to a deceptive technique that leverages text messaging to trick individuals into divulging confidential information, potentially leading to financial loss or identity theft.
Smishing scams are alarmingly prevalent, with numerous cases reported this tax season, claiming to assist taxpayers in obtaining EIP/RRC payments that could reach up to $1,400. Earlier this year, the IRS highlighted that these messages were directed at eligible taxpayers who had not claimed the federal stimulus checks they were entitled to from their 2021 tax returns.
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Scammers have been targeting unwary taxpayers with messages. One text, reported by North Carolina news station WSOC-TV, shows the fraudsters impersonating the IRS.
The message states: “You are eligible to receive a $1,400 Economic Impact Payment. Please provide your accurate personal information. We will deposit the amount into your bank account or mail a paper check within 1 to 2 business days.”
The Better Business Bureau has indicated that these messages include “a fake link mimicking an official IRS site,” and clicking on it may result in malware installation on your device or direct you to “a fraudulent form requesting personal or financial information.”
Nonetheless, the payment process for EIP/RRC does not work in this manner. The IRS has made it clear that payments are automatically issued to eligible taxpayers, meaning no further action is needed if you have submitted your 2021 tax return. Any outstanding EIP will be directly deposited into bank accounts or sent as physical checks, with recipients also receiving a separate letter from the IRS regarding the payment.
Preventing Smishing
Last month, the IRS provided guidance on dealing with smishing scams, confirming that “cyber criminals pose as the IRS and Treasury Department in smishing schemes aimed at collecting personal and financial data from taxpayers.”
The agency has also reminded taxpayers that “the IRS will not reach out via text message or social media requesting personal or financial details.”
“The IRS will not initiate contact via phone or email. If the IRS needs to communicate with you, it will typically start by sending a letter via the U.S. Postal Service.”
Community Reactions
The Better Business Bureau issued a warning in January: “Scammers are impersonating the IRS to deceive taxpayers into revealing personal information, claiming they qualify for a $1,400 stimulus check. These fraudulent messages often appear legitimate but are part of a phishing scheme aimed at stealing sensitive data.”
Next Steps
If you have not yet filed your 2021 tax return, you have until the national deadline of April 15 to submit your claim for the credit and any other potential refunds. The IRS will not accept 2021 tax returns submitted after this date.
