Tax season is prime time for scammers looking to take advantage of unsuspecting individuals and businesses. These fraudulent schemes can lead to identity theft, financial loss, and IRS-related complications. By recognizing the most common tax scams and implementing protective measures, you can safeguard yourself from becoming a victim.
Common Tax Scams to Watch For
- IRS Impersonation Calls & Emails
Scammers often pose as IRS agents, claiming that you owe back taxes and must pay immediately via wire transfer, prepaid debit card, or gift cards. These fraudsters may also threaten legal action or arrest if you don’t comply. Remember: The IRS never initiates contact through phone calls, emails, or text messages demanding payment. - Fake Tax Refund Notifications
Cybercriminals send phishing emails falsely informing you of a tax refund. These messages often contain links to fraudulent websites that steal your Social Security number, banking details, and other sensitive information. Always check directly with the IRS’s official website (IRS.gov) for tax refund status updates. - Tax Preparer Fraud
While most tax preparers are reputable, some bad actors file fraudulent returns, inflate refunds, or steal client identities. Before choosing a preparer, verify their credentials via the IRS Directory of Federal Tax Return Preparers and avoid those who promise unusually high refunds. - Phishing Scams
Scammers send emails or text messages appearing to be from the IRS, urging you to click on a link to update your tax information. These links lead to fake IRS portals designed to harvest personal and financial information. Never click on unsolicited links—always go directly to IRS.gov to handle tax matters.
How to Stay Protected
- File Early: Fraudsters attempt to file fake tax returns using stolen identities before you do.
- Use Strong Authentication: Enable multi-factor authentication (MFA) on tax preparation software.
- Verify IRS Communications: The IRS always contacts taxpayers via mail before initiating any actions.
- Monitor Bank Statements: Keep an eye out for unauthorized transactions, especially during tax season.
Need Help? If you receive suspicious tax-related communication, report it to the IRS at [email protected] or contact us for guidance.
