Tax season isn’t just about crunching numbers and hoping for a refund—it’s also prime time for scammers looking to steal your personal information and cash in on fraudulent refunds. Every year, thousands of taxpayers fall victim to tax-related scams, losing not only their refunds but sometimes their identities.
With cybercriminals getting more sophisticated, you must be smarter, faster, and more cautious than ever. Let’s break down everything you need to know about IRS scams, how to recognize them, and most importantly—how to protect yourself.
The Rise of IRS Scams: Why You Should Care
Scammers know that tax season is a time of heightened financial activity. People are focused on filing their returns, checking their refund status, and ensuring their financial records are in order. This creates the perfect storm for criminals to slip in undetected, using tactics that seem legitimate at first glance.
In 2023 alone, the IRS flagged over $5.7 billion in tax fraud attempts, with identity theft leading the charge. Cybercriminals are leveraging everything from phishing emails to phone scams, text message fraud, and fake tax preparers to deceive unsuspecting taxpayers.
Common Tax Scams to Watch Out For
Before we dive into how to protect yourself, let’s first look at the most common scams that pop up every tax season.
1. Phishing Emails and Texts
Scammers send emails or text messages pretending to be the IRS, often containing urgent messages like:
🚨 “Your tax refund has been delayed. Click here to resolve the issue.”
🚨 “Unusual activity detected on your IRS account. Verify your information now.”
🚨 “You owe additional taxes. Pay now to avoid penalties!”
These messages usually include malicious links designed to steal your personal and financial information. REMEMBER: The IRS never initiates contact via email or text!
2. Fake IRS Phone Calls
Another popular trick is the IRS impersonation scam, where fraudsters call claiming to be IRS agents, demanding immediate payment. They use aggressive tactics, such as:
📞 Threatening legal action if you don’t pay immediately
📞 Demanding payment via gift cards, wire transfers, or cryptocurrency
📞 Claiming your Social Security number has been “suspended”
Again, the IRS will never call you to demand immediate payment—especially not through sketchy methods like gift cards.
3. Tax Preparer Scams (“Ghost Preparers”)
Not all tax preparers are honest. “Ghost preparers” file returns for clients but refuse to sign them, leaving taxpayers legally responsible for errors or fraudulent claims. Some warning signs of a scammy preparer include:
🛑 Promising huge refunds that seem too good to be true
🛑 Charging fees based on a percentage of your refund
🛑 Asking for direct deposit of your refund into their own account
🛑 Refusing to sign or include their Preparer Tax Identification Number (PTIN)
4. Refund Theft and Identity Fraud
This is where scammers file a tax return in your name, claiming a refund before you do. You only find out when you try to file and get a rejection notice saying your return has already been submitted. By then, the scammer has already stolen your refund.
5. Fake IRS Websites
Fraudsters create fake IRS websites that look incredibly real, tricking users into entering their Social Security numbers, login credentials, and bank details. Always double-check the URL—the only real IRS website is IRS.gov.
How to Protect Yourself from IRS Scams
Now that you know what to watch out for, let’s go over exactly what you should do to keep your information and money safe.
1. File Your Taxes Early
The sooner you file, the less time scammers have to submit a fake return in your name. If you wait until the last minute, you’re giving criminals more opportunity to steal your refund.
2. Verify Your Tax Preparer
Not all tax professionals are trustworthy. Make sure your tax preparer:
✔ Has a valid PTIN (required by the IRS)
✔ Signs your return—ghost preparers don’t!
✔ Uses IRS-approved e-filing methods
✔ Doesn’t charge a percentage of your refund
✔ Provides a copy of the return for your records
3. Know How the IRS Communicates
The IRS will never:
❌ Call you demanding immediate payment
❌ Send unsolicited emails or texts
❌ Threaten arrest or legal action over the phone
❌ Request payment via gift cards, wire transfers, or cryptocurrency
If you receive any of the above, it’s a scam.
4. Secure Your Online Accounts
Scammers are experts at hacking weak passwords and accessing sensitive financial info. Here’s how to lock down your accounts:
🔒 Use a strong, unique password for IRS, tax, and banking accounts
🔒 Enable Multi-Factor Authentication (MFA) for added security
🔒 Avoid storing sensitive data on cloud services or email
5. Watch Out for Phishing Scams
Never click links in emails or texts claiming to be from the IRS. Instead, go directly to IRS.gov to check your tax status.
If you receive a suspicious IRS-related email, forward it to phishing@irs.gov.
6. Monitor Your Financial Accounts
Regularly check your bank statements, credit reports, and IRS account for suspicious activity. Setting up account alerts can help you catch fraud early.
7. Freeze Your Credit
If you’re not planning to apply for new credit, a credit freeze prevents scammers from opening accounts in your name. It’s free and available through all major credit bureaus:
🔹 Equifax (www.equifax.com)
🔹 Experian (www.experian.com)
🔹 TransUnion (www.transunion.com)
8. Report Suspicious Activity
If you think you’re being targeted, take action immediately:
📌 IRS Scam Calls: Report to the Treasury Inspector General for Tax Administration (TIGTA) at www.treasury.gov/tigta
📌 Phishing Emails: Forward to phishing@irs.gov
📌 Identity Theft: Visit identitytheft.gov for recovery steps
Final Thoughts: Stay One Step Ahead
Scammers evolve every year, but so can you. By staying informed, filing early, and locking down your personal information, you can outsmart tax fraudsters and protect your refund.
Have you or someone you know encountered an IRS scam? Share your story in the comments below so others can stay aware. 👇
🚨 Stay safe, stay smart, and don’t let scammers steal what’s yours! 🚨
