Tax season is stressful enough without worrying about criminals trying to steal your money or personal information. Unfortunately, tax scams and IRS impersonation fraud increase every year during filing season. As millions of Americans gather their W-2s, 1099s, and other tax documents, scammers know people are dealing with deadlines, refunds, and uncertainty—and they take advantage of that pressure.
The good news is that most tax scams follow predictable patterns. Once you know what to watch for, they become much easier to recognize and avoid.
The IRS Will Never Text or Email You
One of the most important things to remember is that the IRS does not initiate contact through text messages, email, or social media. If the IRS needs to contact you, they will almost always start by sending a letter through the U.S. mail.
Scammers often send alarming messages claiming that your tax refund is on hold, that your account has been flagged for “unusual activity,” or that you must verify personal information immediately. These messages typically include a link asking you to click and resolve the issue quickly.
Do not click the link. Delete the message. These are common IRS phishing scams designed to steal your Social Security number, banking information, or login credentials.
Watch for Suspicious Payment Requests
Another common sign of tax fraud is pressure to make an immediate payment. Scammers may claim you owe back taxes and threaten arrest, lawsuits, or penalties unless you pay immediately.
They often demand payment using unusual methods such as:
- Gift cards
- Cryptocurrency
- Wire transfers
The IRS does not request payment this way. If someone claiming to be from the IRS demands immediate payment using these methods, it is almost certainly a scam.
Be Careful When Choosing a Tax Preparer
Not all tax scams happen online. Some involve fraudulent or unethical tax preparers.
Watch out for “ghost preparers”—individuals who prepare your return but refuse to sign it or include their IRS Preparer Tax Identification Number (PTIN). By law, legitimate tax professionals must sign the tax returns they prepare.
You should also be cautious of preparers who charge fees based on the size of your refund or promise to settle your tax debt for “pennies on the dollar.” While legitimate IRS debt settlement programs exist, many aggressive firms charge large fees for services that ultimately don’t apply to most taxpayers.
Be Skeptical of Tax Advice on Social Media
Social media platforms such as TikTok have become unexpected sources of tax misinformation. Some influencers promote questionable strategies that promise large refunds through little-known “loopholes.”
In many cases, these suggestions involve filing inaccurate information or claiming credits that don’t exist. The IRS actively monitors fraudulent filings, and the taxpayer—not the influencer—faces the penalties.
Filing Early Can Help Prevent Identity Theft
One of the best ways to protect yourself from tax identity theft is to file your return as early as possible. Identity thieves sometimes file fraudulent tax returns using stolen Social Security numbers to claim refunds before the real taxpayer files.
You can also create an account at IRS.gov to monitor your tax records. For additional protection, consider requesting an Identity Protection PIN (IP PIN) from the IRS, a six-digit code that prevents anyone else from filing a return using your Social Security number.
When in Doubt, Go Directly to the Source
If you receive a message claiming to be from the IRS and something doesn’t seem right, do not call the number in the message or click any links. Instead, visit IRS.gov directly or contact the IRS through official channels.
During tax season, scammers rely on urgency and confusion. Taking a few extra seconds to verify a message could save you thousands of dollars—and months of frustration dealing with tax fraud or identity theft.
Your Financial Navigator,
Johannes