It's tax season, and cybercriminals are working overtime to make an already stressful period even more challenging. With sophisticated scams targeting taxpayers at every turn, staying informed about the latest threats is more important than ever. Here's what you need to know to protect yourself during filing season.
Understanding Tax Scam Warning Signs
Tax and IRS scams contain many telltale warning signs that every taxpayer should recognize. Scammers impersonate the IRS or tax preparers via phone, email, or text, using official logos or spoofing caller ID and sender domains. They may demand immediate payment or fines, or trick you into filing fraudulent returns. With AI tools now supercharging these schemes, vigilance is critical.
Key Red Flags
- Unsolicited contact: The IRS always makes initial contact via official letter through the mail, never through text messages
- Immediate payment demands: The IRS provides taxpayers time to appeal or query outstanding sums
- Unusual payment methods: Scammers request payment by gift card or cryptocurrency, which the IRS doesn't accept
- Personal information requests: The IRS never calls, texts, or emails asking for credit card numbers and banking logins
- AI-aided deception: Your eyes and ears can no longer be trusted as primary authentication mechanisms
The Most Common IRS Scams
Phishing, Smishing, and Vishing
These attacks come via emails, texts, and phone calls purporting to be from tax authorities. The end goal is to trick you into handing over cash, sensitive personal or financial information, or installing malware on your device. Scammers may claim you're owed an unexpected tax refund or that your account has been suspended with serious consequences unless you address 'unpaid taxes.' They'll ask you to provide information, send money, or click on malicious links.
Tax Refund Fraud
The IRS tax refund system offers several opportunities for scammers. All they need is your personal information to file a return and deposit the refund in an account under their control. The first indication might be when your legitimate filing is rejected because a return has already been submitted under your name. Alternatively, scammers impersonating the IRS might send unsolicited emails or texts claiming you're owed a big rebate, asking you to 'verify your account' details on a phishing website.
W-2 Form Scams
Social media influencers advertise a 'secret trick' to game the tax system and get a large refund. They instruct victims to create fake W-2 forms, report inflated earnings and large tax bills, then pay them a fee. This constitutes fraud and could result in major financial penalties from the IRS or even criminal investigation. Worse still, you've shared your personal and tax details with criminals who can use them for follow-on fraud.
Self-Employment Tax Credit Scam
Circulating on social media are claims about a non-existent "Self-Employment Tax Credit." According to the IRS, scammers claim self-employed people and gig workers can get big COVID-19 payments by filling in the right forms. Once again, they do this to obtain your cash and personal information.
Dishonest Tax Preparers
Be on the lookout for unscrupulous "tax professionals" who may substitute their bank account information for yours to divert tax refunds. They might prepare a tax return but charge a fee based on the size of the refund. Be suspicious of any that refuse to sign or include their IRS Preparer Tax Identification Number (PTIN).
What to Do If You Suspect a Scam
If you suspect an IRS scam, halt all communications immediately. Hang up the phone and delete any phishing email or text. If you're uncertain whether contact is legitimate, ask for a name and callback number and verify the details online. Scam emails can be forwarded to [email protected] before deletion, and you can submit an official fraud report to the IRS here.
Staying Safe from IRS Scams
To avoid becoming a victim, stay alert for warning signs. Unsolicited contact, promises of large refunds, and threats of fines or arrest should be immediate red flags. Be cautious about any "tax tricks" or tips you see on social media, especially if they involve paying fees to a third party or handing over personal or financial information.
Protection Strategies
- Enable MFA: Switch on multifactor authentication for any account used to access tax and financial information
- Get an IP PIN: An IRS Identity Protection PIN ensures no third party can file a return using your Social Security number or individual taxpayer identification number
- File early: Submit your returns as soon as you receive your W-2 form, so scammers can't beat you to a possible refund
- Use security software: Install reputable anti-malware to protect against various digital threats
TL;DR
- The IRS never initiates contact via email, text, or phone requesting personal or financial information
- Be wary of unusual payment methods like gift cards or cryptocurrency
- Common scams include phishing attacks, tax refund fraud, fake W-2 schemes, and dishonest tax preparers
- Protect yourself with MFA, an IP PIN, early filing, and staying alert for red flags
- Report suspected scams to the IRS and halt all communication with suspected fraudsters
Source: ESET: Taxing times: Top IRS scams to look out for in 2026