Tax season often brings a mix of excitement and anxiety for millions around the globe. The prospect of a refund can provide much-needed financial relief, while the filing process itself often creates confusion. Unfortunately, this combination makes the perfect hunting ground for scammers. Every year, criminals develop increasingly sophisticated methods to steal money and personal information from unsuspecting taxpayers.
Many people lose thousands of dollars to these scams, while others spend years repairing damaged credit and resolving identity theft issues. As digital tools advance, so do the tactics used by fraudsters looking to exploit the tax filing process. If you know what to look for, you can avoid falling for these traps. Here are some of the most common tax-related scams to be aware of this year, along with tips on how to protect yourself.
Related: The 7 Biggest Mistakes You Can Make While Filing Taxes
One of the oldest but still effective scams involves fake emails claiming to be from the IRS. These messages often include realistic details such as filing deadlines or refund information to appear legitimate. However, examining these emails closely reveals telltale signs of fraud.
Look carefully at the sender's email address—many scammers use foreign domains (like .nz instead of .gov) that don't match official IRS communications. The language used also often contains subtle errors. The IRS refers to money owed to taxpayers as "refunds," not "returns," and generally communicates through postal mail rather than email for important matters like tax refunds.
Many criminals now also use artificial intelligence tools to create convincingly personalized phishing emails containing your name, address, and other personal details. These messages typically create urgency by claiming immediate action is needed or threatening legal consequences. Remember that genuine IRS communications never begin through email or text messages—always verify any supposed tax issues by directly contacting the IRS through official channels.
Phone scammers impersonating IRS agents aim to create panic by claiming you owe money to the government. They usually demand immediate payment or ask for your banking information to "verify your identity" or "process your payment."
No matter how intimidating these calls may seem, resist the urge to comply with their demands. The real IRS allows you to verify tax obligations through their official website or phone number. Legitimate IRS representatives don't make threatening legal claims or behave rudely toward taxpayers.
Similar to email phishing, "smishing" scams happen via text messages claiming you owe taxes and need to click a link to make payment. These texts often contain malicious links that, when clicked, can install harmful software on your device even if you don't enter any payment information.
Identifying these fake texts is simple—the IRS doesn't initiate contact with taxpayers through SMS messages, and they certainly don't send texts with reply options. Any message claiming to be from the IRS that asks you to respond by text should be immediately deleted.
Some scammers pose as professional tax preparers to gain access to sensitive financial information. They promise low-cost, fast refunds, but instead file fraudulent returns in your name or steal your refund. These fraudsters may also ask for upfront payments and disappear before providing any service.
To avoid this scam, always verify a tax preparer’s credentials. Look for a valid Preparer Tax Identification Number (PTIN) and check reviews from trusted sources. Be wary of preparers who guarantee unusually large refunds or ask you to sign blank tax forms.
Related: Debunking 8 Common Misconceptions About Taxes
Although stimulus payments were widely distributed during the COVID-19 pandemic, scammers continue to exploit them. Fraudsters may send emails or messages claiming you are owed a new stimulus check, directing you to a fake website that looks identical to the IRS portal.
These websites trick individuals into entering personal and banking information. However, legitimate stimulus payments are automatically processed for eligible recipients, and any official correspondence will be sent through the mail. If someone contacts you claiming you need to submit additional details online, it's a scam.
Your Social Security (SSN) number and tax identification number are valuable pieces of personal information. Scammers attempt to steal these details by pretending to be IRS representatives, tax preparers, or financial institutions.
If you receive a request for your SSN via email, phone, or mail, verify its legitimacy before providing any details. While legitimate tax preparers may require this information for tax filing, unsolicited requests should always be treated with caution. If scammers obtain your SSN, they can commit identity theft, open fraudulent accounts, or even file false tax returns in your name.
In a particularly deceptive scam, messages appear to bring good news - for example, emails stating that the IRS has revised your tax return and found you are entitled to an additional refund. The message looks official and creates excitement about unexpected money coming your way.
The scam takes a dangerous turn when you're asked to click a link and "verify" your personal or financial details to receive this supposed windfall. This classic phishing technique aims to collect your sensitive information for identity theft purposes. In reality, no additional refund exists, and any information you provide goes directly to criminals who can use it to drain accounts or open fraudulent credit lines.
To protect yourself, remember that the IRS initiates most important communications through postal mail, not email. If you're curious about the status of your legitimate tax refund, avoid clicking links in unsolicited messages. Instead, go directly to the official IRS website and use their "Where's My Refund?" tool, which provides secure and accurate information about any money the government actually owes you.
Related: These Financial Scams Are Specifically Targeting Older Adults
Criminals have developed schemes centered around tax transcripts—summaries of your past tax information maintained by the IRS. Scammers send emails designed to look like official IRS communications, claiming your tax transcript is attached or available through a link.
When you open the attachment or click the link, malicious software installs on your device. This malware can log keystrokes to capture passwords, search your files for financial information, or even lock your computer and demand a ransom payment. The damage extends beyond tax information, potentially compromising online banking access, credit card numbers, and other sensitive data stored on your device.
The IRS never sends unsolicited tax transcripts via email. If you need your tax transcript, request it directly through IRS.gov or by calling their official number. Taking these extra steps might require more time, but they provide genuine protection against this increasingly common form of tax-related cybercrime.
