Colorado ranks in top 10 U.S. states for most reports of tax preparer, imposter scams per capita

With tax season here, the IRS is asking everyone to be extra vigilant. This, as CBS News Colorado has found Colorado ranks in the top 10 states in the country for most people per capita falling victim to tax and imposter scams.

Colorado ranks fourth in the country for most reports per capita of imposter scams, and sixth in the country for most tax preparer scam reports per capita, according to 2022 data from the Federal Trade Commission.

Across the country, victims of these reported tax preparer scams have lost $1.3 million, the FTC says.

The IRS Criminal Investigation Denver Field Office office tells CBS News Colorado in the last three years, investigators have tracked down and secured criminal sentences for more than 300 fraudulent tax preparers nationwide. 

To protect yourself, the IRS-CI says to look out for preparers who won't sign your return, known as "ghost preparers," and make sure you ask your tax preparer for their IRS Preparer Tax Identification Number - or PTIN. All preparers are required to have one.

Andy Tsui, Special Agent in Charge for the IRS-CI Denver Field Office, also says to go over all of the details of your return with your preparer before allowing your preparer to submit, and never agree to sign a blank tax return. 

"Some unscrupulous tax preparers might be promising huge refunds, and the truth is, there's no secret loophole out there only one or two people know about," Tsui said. "The average taxpayer is not going to get any larger refund this year than last year, unless something has changed. With bad tax preparers, anyone that's promising a huge refund, that's the first red flag."  

He says it's important not to fall victim because you could be held liable for any tax fraud your preparer files in your name.

But it's not just shady preparers who are conning unsuspecting people. Tsui says fraudsters working an imposter scam, posing as the IRS, have even called his phone - the phone of an IRS criminal investigator - to try to land their next victim.

"They really don't care who it is, the more calls, emails, text messages they get out, the more likely someone is going to click on it or send a payment," Tsui said. 

According to FTC data, there were 182,190 reports nationwide in 2022 of imposter scams with $588 million in reported financial losses for victims. But Tsui says these scams often go underreported, and he believes the problem to be much greater. 

The IRS-CI also has these tips to avoid falling victim to IRS imposter scams:  

Don't respond to or click on any links in text messages, emails or social media posts claiming to be from the IRS, and don't believe it if someone calls threatening IRS legal action.

Tsui says the IRS will only contact you by an official hardcopy letter in the mail. 

Finally, if you suspect fraud, report it right away to law enforcement.