Tax Time: Beware Of These Top 3 Scams

By Lori Fullbright, The News On 6

UNDATED -- People are thinking about their taxes this time of year and while most of us are worried about deductions and refunds, scammers are working overtime to figure out ways to steal your identity and your money. 

Here are the top three scams you need to know about in 2010.

Each scam can come in the form of an e-mail, letter or phone call, but e-mail is most common. 

• The most popular scam indicates you're due a refund and you need to click on a link or fill out information to get it. 

Wrong.

If you click on the link, it will download a virus on your computer. If you fill out the form, you'll be giving them all kinds of personal information they can use to steal your identity.

"In that instantaneous moment of recognizing that e-mail, common sense goes out the window and you immediately react, which is what scam artists are counting on and you turn over your private information," said Rick Brinkley, Better Business Bureau.

• Next, is the W-8BEN form. It's a real form the IRS uses. You'll be told you need to fill it out and if you don't, they threaten you with fines and trouble. 

Wrong.

This form is something you send to your bank, not the government.

"What they have done to this form and can do with any form, is alter it to ask for your private banking information, social security and account numbers," said Brinkley.

• Finally, a scam based on the new Making Work Pay tax credit. They tell you you're due a refund under this new credit, but of course need your bank information and social security number. 

Wrong.

The refund has actually been coming on your paycheck.

"The reality is the program does exist, but the money is not given to you by the government. Less taxes are withheld out of your paycheck so you have the added benefit of spending more money," said Brinkley.

The IRS will never e-mail about a refund or to ask you for bank account information or your social security number. But, these e-mails look very real, so before you answer anything from a business or the government, do a Google search or check with the Better Business Bureau to make sure it's legit.