Tax season can feel already overwhelming, especially if you’re a small business owner, self-employed worker, or someone new to the U.S. system. And possible scams only making it scarier. But here’s the good news: tax fraud scams are sneaky but preventable. If you stay alert, you can avoid falling victim to tricks that target people in Charlotte, Monroe, Union County, and nearby communities like Gastonia, Concord, and Huntersville.
This guide will help you recognize red flags so you can keep your money safe, without the stress.
Signs of Tax Fraud in North Carolina
Tax fraud isn’t just about big-time criminals, it often starts with simple tricks that sound too good (or too scary) to be true. Here’s how scammers try to trick people in our area, and what you should do instead.
“IRS” Calls or Emails Asking for Personal Info
What it looks like:
- You get a call or email from someone claiming to be the IRS, saying your taxes are overdue.
- They demand payment by gift card, wire transfer, or cryptocurrency (never real money!).
- They ask for your Social Security number, bank account details, or tax return info, even if you haven’t filed yet.
Why it’s a scam:
The IRS NEVER calls you out of the blue.
If they have a problem with your taxes, they’ll send a letter by mail (not email or phone).
They’ll never ask for payment via gift cards, wire transfers, or cryptocurrency.
If you owe taxes, they’ll give you time to pay no threats of arrest!
What to do instead: Call the IRS directly at 1-800-829-1040 (or check their official website: irs.gov) to confirm. Never share sensitive info unless you’ve verified who’s calling.
Fake “Tax Refund” Scams Targeting Small Businesses & Gig Workers
What it looks like:
- You get an email or text saying your “tax refund is approved”, but you need to pay a processing fee first.
- Or, someone claims they can “get you more money back” by filing a special return (like for gig work, freelancing, or rental income).
- They might even ask for your business license number or EIN (Employer Identification Number).
Why it’s a scam:
The IRS does not charge fees to process refunds.
If you’re self-employed (like many in tech, food truck, or service industries), you must file correctly, but no one can guarantee extra money unless they’ve seen your actual records.
What to do instead: Use a trusted tax pro who knows the local rules. If someone asks for payment upfront, it’s likely a scam, legit services won’t charge you before helping.
Grammar & Spelling Errors That Scream “Scam”
What it looks like:
- An email from the IRS has typos (“IRS” spelled wrong, missing punctuation).
- A phone call sounds rushed or unprofessional, like someone reading from a script.
- A website for a tax service looks sketchy (no clear address, no reviews).
Why it’s a scam:
The real IRS uses professional, error-free communication.
Legit businesses will have clean websites with customer testimonials.
What to do instead: Search the sender’s email or phone number online, if it’s fake, you’ll find complaints.
“You’re Being Audited” Scams
What it looks like:
- A call says your tax return was randomly selected for an audit but you didn’t file yet!
- They demand immediate payment or risk legal trouble.
- They ask for your bank details before you even know why.
Why it’s a scam:
The IRS only audits people who filed returns (not those who haven’t).
If you’re being audited, they’ll send you a formal notice by mail not a random call.
What to do instead: Ignore the call. If you get an audit notice, it’s official, but don’t panic!
“But What If I Already Fell for One of These Scams?”
If you think you’ve been targeted by a scam, don’t panic. Here’s what to do next:
- Stop all contact with the scammer.
- Report it to:
- The IRS Phishing & Online Fraud Reporting (for fake IRS calls).
- The FTC Complaint Assistant (for email or website scams).
- Freeze your credit if they got personal info.
- Check your bank statements for unauthorized transactions.
Your Financial Solutions
Tax scams are everywhere, but you don’t have to be a victim. By staying alert and knowing what’s real vs. fake, you can protect yourself and your hard-earned money.
Remember: The IRS won’t call you out of the blue. No legit tax service charges upfront fees for refunds. If it sounds too good to be true… it probably is.