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Tax Scams

 

Tax Scams – How to Protect Yourself

Tax scammers operate year-round, not just during tax season, and target virtually everyone. Their goal is to steal identities, financial information, or file fraudulent tax returns using stolen data. Stay alert to how criminals pose as the IRS to deceive taxpayers.

Important Reminder:

The IRS NEVER initiates contact via phone, text, email, or social media to request personal or financial information. The IRS always sends a letter first.

 

Common Tax Scams

1. IRS-Impersonation Telephone Scam

Aggressive phone scammers pretend to be IRS agents, using fake names and badge numbers to sound convincing. They often:

  • Use caller ID spoofing to appear as if the IRS is calling.
  • Demand immediate payment via gift cards, prepaid debit cards, or wire transfers.
  • Threaten victims with arrest, deportation, or license suspension.

What the IRS Will Never Do:

  • Demand immediate payment before first mailing a bill.
  • Require payment via a specific method, like a prepaid debit card.
  • Ask for credit card or bank details over the phone.
  • Threaten arrest or legal action.

What to Do:

  • Hang up immediately and do not provide any personal information.
  • If you owe taxes, contact the IRS at 800-829-1040 for assistance.
  • If you do not owe taxes, report the scam to TIGTA (Treasury Inspector General) at 800-366-4484 or visit www.tigta.gov.
  • File a complaint with the Federal Trade Commission (FTC) at www.ftc.gov.

 

2. Phishing & Fake IRS Emails

Scammers send fraudulent emails using fake IRS letterhead, directing victims to web links that collect personal and financial information (e.g., SSNs, bank accounts, passwords).

How to Spot Phishing Attempts:

  • The IRS does not notify taxpayers via email about refunds or payments due.
  • The IRS never requests PIN numbers, passwords, or bank details via email.

What to Do:

  • Do not reply to suspicious emails.
  • Do not click any links or attachments—these may contain malware.
  • Forward the email to the IRS at phishing@IRS.gov, then delete it.

 

3. Other Common Tax Scams

  • Fake Charities: Fraudulent organizations trick donors into contributing. Verify charities on IRS.gov before donating.
  • Offer in Compromise (OIC) Mills: Some companies falsely claim they can settle tax debts for "pennies on the dollar" while charging excessive fees.
  • Social Media Scams: Scammers gather publicly shared personal data to use against victims.
  • COVID-19 Related Scams: Scammers exploit global events to impersonate officials or request financial details.

 

How to Protect Yourself from Tax Scams

  • Do not share personal information over the phone, mail, or internet unless you initiated the contact.
  • Never carry documents displaying your SSN or ITIN.
  • Limit financial data you provide to businesses—only share if required.
  • Monitor your credit report annually.
  • Use firewalls and anti-virus software to protect your personal devices.
  • Review privacy settings on social media and limit publicly available information.
  • Report tax scams to the IRS if you suspect fraudulent activity.

For more official IRS tax security tips, visit www.irs.gov.