Tax season is tax scam time. Tax scams abound year round, but people over 65 are targeted even more frequently during the tax season. Tax season is tax scam time. Why ? A certain amount of money is in play at this time as taxpayers are figuring out what they owe Uncle Sam and scammers take advantage of the fact that money is being exchanged between U.S. citizenry and its government. On April 15 we effectively settle the bill. People who owe more than they paid during the last year will receive a tax refund. Others who paid less in tax than they actually owe will be sending money to the government.
Many tax season scammers call you up and pretend to be from the Internal Revenue Service. Some insist that you owe taxes and even threaten you with arrest. Others attempt to obtain your personal information, such as your bank account numbers or Social Security number, even promising the information will be used to deposit a hefty tax refund in your account.
Older people have relatively higher net worth’s, on average than younger folks. In fact, households headed by people between 65 and 74 have a much higher net worth than younger households, according to the U.S. Federal Reserve’s triannual Survey of Consumer Finances. Households headed by people 75 and older have the highest net worth in the country, more than double that of households whose heads are 45 to 54 years old.
Older people are especially vulnerable to scams. Senior citizens living on a fixed income might be frightened by people demanding money from them. Seniors are also more likely to be home during the day and answer the phone when it rings. But scams can be averted if you’re knowledgeable about how the IRS actually operates, and how tax scammers operate and then understand the difference.