IRS: Beware of These Top Tax Season Scams

Tax rebate scams. Another scam involves scammers trying to steal personal information with promises of a federal rebate. They’re assisted by the fact that there is a legitimate rebate, where the IRS is automatically providing $1,400 to taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 returns. But most of these payments have already been sent. “[Criminals are] sending fake IRS texts, claiming you need to ‘verify’ your information to receive your payment,” says Truman Kain, offensive security researcher at Huntress, a cybersecurity firm. “If you click the link, you’re taken to a convincing but fake IRS website designed to steal your Social Security number, bank details, and other personal info. They’re running a numbers game, blasting out texts, hoping someone bites.”

Submitting fake returns in a victim’s name. Because of the huge number of data breaches, there’s a “heightened risk of fraudulent tax returns,” says Keven Knull, CEO of TaxStatus, an IRS account monitoring platform for financial professionals. "Criminals can exploit stolen TINs [Tax Identification Numbers] to file fake returns, often claiming large refunds long before the legitimate taxpayer even becomes aware.” If the criminal files a phony return before the taxpayer, then the IRS may not detect the fraud until the legitimate return is filed, Knull explains.

Fighting back

Here are some ways to protect yourself:

File early. “One of the most effective ways to prevent tax fraud is to file your return as early as possible, reducing the window of opportunity for identity thieves to submit a fraudulent return in your name,” says Cummings. Also, conversely, try to avoid tax extensions. “Delaying tax filing increases the risk of fraudulent returns being submitted in your name, leading to lengthy disputes with the IRS to reclaim lost funds,” notes Knull. And if you’re getting a refund, choose direct deposit rather than a check, advises Chase Bank.

Request an IRS Identity Theft PIN. This six-digit personal identification number prevents someone from filing a tax return with your Social Security number or individual taxpayer identification number. “The IRS will issue you a pin every year, and this pin will be required to file your taxes,” says tax adviser Karla Dennis, CEO of Karla Dennis & Associates. To get one, create an online account at IRS.gov, where you can request an IP PIN or retrieve an existing IP PIN by using the “Get an IP PIN” tool. The account also allows you to monitor filings, access tax records, and receive alerts about suspicious activity. And if someone offers to help you create an online account, it’s likely another scam. “In reality, no help is needed,” the IRS states. Third parties often try to steal your personal information, submit fraudulent tax returns in your name, and score a large refund.

Know how the IRS communicates. Unless you have been in contact with the IRS about back taxes, the IRS will never call, text, or email you asking for personal information or requesting payments. If you receive a call like this, hang up. And don’t click on links in emails or texts. The links could load malware or ransomware onto your computer or device. “If you get an unexpected text about an IRS payment, it’s a scam. No exceptions,” says Kain. If the IRS suspects fraud in your name you will receive a letter from the Taxpayer Protection Program (find out what that would look like here).

Know how scammers communicate. Tax scammers often use urgency, fear, and enticements (big refunds!) to manipulate victims. Nati Tai, head of Guardio Labs, cites messages such as:

• “Your tax return has an error. Act now to avoid penalties!”
• “You’re eligible for a $1,500 tax refund. Click here to claim it.”
• “The IRS has flagged your account. Verify your information immediately to avoid legal action.”

Another giveaway: IRS imposters often demand immediate payment and will tell you to pay with gift cards, wire transfers, or cryptocurrency, Dennis says.

Hire a reputable tax preparer. Use a credentialed tax professional, such as a certified public accountant, enrolled agent (a tax preparer licensed by the IRS), or a tax attorney. Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid 2025 PTIN.

Beware of big promises. “[Criminals] often promote schemes involving improper claims for tax credits, such as the Employee Retention Credit or Fuel Tax Credit, to lure taxpayers into filing fraudulent returns,” Cummings says. Before claiming any credit, talk to a tax professional or consult the IRS.

Ignore tax tips on social media. On platforms like TikTok, people share what the IRS calls “wildly inaccurate tax advice.” This can lead you not only to file an incorrect and possibly illegal tax return but also make you susceptible to an “awareness connection,” says Alison Flores, manager of The Tax Institute at H&R Block. She explains that when you receive a phishing message that contains advice you’ve seen before on social media, it can feel legit due to its familiarlity.

Use secure portals. Always use a secure online portal to upload documents. “If you email or text your tax documents, they could end up in places you don’t want them to end up,” says Flores. This is another problem with ghost preparers, she adds: Your information is less likely to be protected. “Your tax return shows where you work, where you live, your date of birth, your social — you don’t want this data in an insecure location,” she says. Likewise, don’t file your taxes using insecure public Wi-Fi in spaces like coffee shops. “Scammers can set up hotspots that look like legitimate public network options and capture login credentials and more,” says John Wilson, senior fellow for threat research at Fortra, a cybersecurity company. “You can eliminate this risk by using a VPN whenever you are on public Wi-Fi.”

Report scams. To report a tax scheme or an illegitimate tax preparer, use online IRS form 14242 — Report Suspected Abusive Tax Promotions or Preparers. If you suspect identity theft, use form 14039 — Identity Theft Affidavit. You can also forward phishing emails to [email protected].