Tax season is a busy time not only for taxpayers but also for fraudsters looking to exploit unsuspecting individuals and businesses. Each year, scammers develop new tactics—ranging from phishing emails to fake IRS agents—to steal personal information, commit identity theft, and claim fraudulent refunds.
To protect yourself, it’s essential to recognize these common scams and understand how to safeguard your financial data.
Common Tax Scams to Watch Out For
1. Phishing Emails and Fake IRS Communications
One of the most common scams involves fraudsters impersonating the IRS through emails or text messages. These messages often claim urgent action is required, directing victims to fake IRS websites where they unknowingly enter sensitive information. Some even include official-looking IRS logos to appear legitimate.
🔹 How to Avoid It:
✔️ The IRS never initiates contact via email, text, or social media for tax payments or personal details.
✔️ Never click on links or download attachments from unsolicited emails.
✔️ Forward suspicious emails to [email protected].
2. Phone Scams and Fake IRS Agents
Scammers may call taxpayers, pretending to be IRS agents demanding immediate payment or threatening arrest. They often insist on payments through unconventional methods like gift cards, wire transfers, or cryptocurrency.
🔹 How to Avoid It:
✔️ The IRS does not call to demand payment or threaten jail time.
✔️ If you receive a suspicious call, hang up and report it to the Treasury Inspector General for Tax Administration (TIGTA).
✔️ Review this IRS page for next steps.
3. Tax Return Identity Theft
In this scheme, fraudsters use stolen personal information to file a tax return in your name and claim a refund before you do. Victims usually discover the fraud when their legitimate return is rejected.
🔹 How to Avoid It:
✔️ File your taxes early before scammers have the chance to submit fraudulent returns.
✔️ Use strong, unique passwords for all financial and tax-related accounts.
✔️ Sign up for an IRS Identity Protection PIN (IP PIN) to add an extra layer of security.
4. Fake Tax Preparers
Scammers may pose as professional tax preparers, promising large refunds while stealing sensitive information. Some even submit fraudulent returns in your name and pocket the refund.
🔹 How to Avoid It:
✔️ Verify credentials through the IRS Directory of Federal Tax Return Preparers.
✔️ Never sign a blank tax return.
✔️ Ensure your preparer provides a Preparer Tax Identification Number (PTIN) and signs your return.
5. Social Security and Refund Scams
Some scammers falsely claim that your Social Security number has been suspended due to unpaid taxes or that they can expedite your refund for a fee—while redirecting it to their own accounts.
🔹 How to Avoid It:
✔️ The IRS does not suspend Social Security numbers due to unpaid taxes.
✔️ Be wary of anyone claiming they can "speed up" your refund.
✔️ Check your IRS account regularly to monitor refund status.
Protect Yourself from Tax Scams
Find a Trusted Tax Professional
One of the best ways to ensure safe and accurate tax filing is to work with a reputable accountant or tax preparer. Use our Find an Accountant tool to locate trusted professionals in your area.
Monitor Your Tax Records
Set up an IRS account to track tax filings associated with your Social Security number. If you notice anything unusual, report it immediately.
Report Suspected Scams
If you believe you've encountered a tax scam, report it to:
📌 IRS Phishing Email Reporting – [email protected]
📌 Report Scams and Fraud directly to IRS - https://www.irs.gov/help/tax-scams/report-a-tax-scam-or-fraud
📌 Report Tax Fraud to Inspector General - https://www.tigta.gov/reportcrime-misconduct
Final Thoughts
Tax scams are growing more sophisticated, but by staying informed, filing early, and working with a trusted tax professional, you can protect yourself and your finances. If you have concerns about your tax situation, consult a professional today to ensure a safe and stress-free tax season.