Tax scam calls are on the rise again, inundating citizens with often threatening calls in the name of the Internal Revenue Service. Scammers use multiple methods to trick victims out of their money.  The most common con involves telling the victim they are under investigation for tax fraud and that they will be arrested if they don’t pay a bogus back tax bill immediately.

Another more ominous scam this year involves the con artist stealing tax return data from preparers and then file returns in the victim’s name.  Surprisingly, they still direct the funds to the victim’s own bank account, but then they contact the victim and say the refund was deposited in error.

The IRS has warned about this fast-growing con, saying that any taxpayer who receives a refund they didn’t apply for should contact the agency immediately at its toll-free number (800-TAX-1040).  You should have your bank return the payment to the IRS and immediately take steps to secure your bank account.  You may also want to check the security of any account that might be listed on your tax return, including your brokerage accounts.

If you get a phone call from someone claiming to be from the IRS, take note:  The IRS will NEVER initiate a phone call to a taxpayer, unless they are returning your call. And, the IRS does not initiate contact with taxpayers by email to request personal or financial information.  This includes any type of electronic communication, such as text messages and social media channels.

If you suspect you are a victim of this scam, the IRS has published step-by-step advice here.