You’ve Been Warned: 5 Tax Scams and What to Do Next
Over the past several weeks, we’ve broken down some of the most common scams individuals are facing—many with big tax consequences. These schemes aren’t just about lost dollars. They’re about shaken trust, stolen time, and emotional stress most folks never saw coming.
Here’s what we covered:
- Compromised Account Scam – A fake fraud specialist tricks you into moving money to “safe” accounts they control.
- Pig Butchering Investment Scam – A slow build of fake returns that ends with your investment accounts drained.
- Phishing Scam – One link opens the door to your financial life, and the scammer walks right in.
- Romance Scam – An emotional connection turns into a financial loss, with no tax deduction to soften the blow.
- Kidnapping Scam – A terrifying call convinces you to send money to save a loved one who was never in danger.
Each of these plays on trust, urgency, or fear. And in some cases, even when the money’s gone, the IRS still considers distributions from retirement accounts as taxable—yes, even if the money was stolen.
So What Can You Actually Do?
If something feels off—whether it’s an email, a phone call, or a message from someone you know—slow it down. Here’s a playbook we stand by:
- Hang up or close the message. Scammers create urgency. Breaking the moment breaks their power.
- Go straight to the source. Call your bank, advisor, or institution directly—using a number or contact you trust.
- Don’t move money quickly. Any financial decision that requires speed should raise a red flag.
- Talk to someone. We mean this. Contact us, call a trusted friend, call your adult child. If you feel unsure, don’t go it alone.
The unfortunate truth is these scams aren’t going away. But being informed, skeptical when needed, and open to asking for help? These steps are your best defense.
If you have questions about whether a loss is deductible, how to report it, or just need a sounding board—we’re here for that. No judgment, no drama. Just real support when you need it
