March 10, 2025
What is a “tax scam”?
Summary:
Tax scams are attempts to steal your money or personal information often by impersonating the IRS or promising fake tax benefits. When in doubt, pause, verify the source and report any suspicious activity.
Cybercriminals use email, phone calls, text messages and even fake tax preparers to trick people into providing their sensitive information.
Remember, legitimate tax agencies will never threaten you with immediate arrest or legal action over the phone or via email.
Remember, legitimate tax agencies will never threaten you with immediate arrest or legal action over the phone or via email.
Common types of tax scams
- Traditional phishing scams: Fraudulent emails or texts claiming to be from the IRS or tax service. Scammers attempt to trick you into clicking a suspicious link, downloading a malicious attachment or even scanning a fake QR code to steal personal sensitive information or infect your device with malicious software.
- IRS impersonation calls: Scammers pose as IRS agents demanding immediate payment or threatening arrest, legal action or seizure of assets. The IRS with never call to demand payment over the phone or threaten you with law enforcement arrest.
- Identity theft and fake tax returns: Scammers use stolen Social Security numbers to file fraudulent tax returns and steal refunds. Victims only discover the fraud when they try to file and get rejected.
- Fake tax preparers: Fraudulent preparers file false returns or steal clients’ refunds. Some charge fees based on a percentage of the refund or ask clients to sign blank tax returns.
- Refund and stimulus check scams: Scammers claim you’re entitled to additional refunds or stimulus checks. They ask for personal information to “process” the payment but instead steal your identity.
How to protect yourself
- File early: Reduce the risk of identity thieves filing a return in your name.
- Use secure tax software: Ensure your tax software if up to date and reputable.
- Verify tax preparers: Check credentials using the IRS’s Directory of Federal Tax Return Preparers.
- Shred sensitive documents: Prevent identity theft by securely disposing old tax documents.
- Enable multi-factor authentication: Add an extra layer of security to your tax accounts.
- Monitor your tax account: Check for unauthorized filings at https://www.irs.gov/account.
What should you do if you suspect a tax scam?
Scammers are constantly evolving their tactics, so staying informed is your best defense. When in doubt, pause, verify the source and report any suspicious activity to the IRS. By staying alert, you can protect yourself and your family from tax scams.
