Common Tax Scams You Should Know About (And How to Avoid Them)

Let’s be real—tax season is already stressful enough without scammers trying to make it worse. But every year, thousands of people fall victim to tax-related scams that can drain their bank accounts, steal their identities, or delay their refunds. And the worst part? Many of these scams look legit—from fake IRS emails to convincing phone calls threatening arrest if you don’t “pay up.”

With so much personal and financial info floating around during tax season, it’s no surprise that scammers see this as prime time to strike. That’s why it’s so important to know what to look out for.

In this blog, we’re breaking down the most common tax scams, how they work, and—most importantly—how you can protect yourself. Whether you file on your own or use a tax pro, this guide will help you stay ahead of the tricks and avoid getting scammed.

Why Tax Scams Are So Common

Tax scams aren’t just a seasonal trend—they’re big business for scammers. In 2024 alone, the IRS received nearly 300,000 reports of identity theft, which the agency estimates led to $5.5 billion in tax fraud. Every year, new and more convincing schemes pop up, targeting people just trying to file their returns or claim a refund.

Here’s the reality:

• Deadlines create pressure. Scammers know tax season is full of tight deadlines, and they use that urgency to push people into acting fast—without thinking twice.
• Filing can be confusing. Let’s face it: taxes aren’t exactly beginner-friendly. Complex forms and jargon make it easier for scammers to take advantage of people who aren't sure what the process should look like.
• Digital filing opens new doors. Most people now file online, which means more opportunities for phishing, fake websites, and hacked accounts.
• Scammers follow the money. Billions in tax refunds go out every year. That’s a huge target—and scammers will use any tactic they can to redirect some of that cash into their own pockets.

Knowing the why behind tax scams makes it easier to spot the red flags. Next, we’ll break down exactly what those scams look like—so you know what to avoid.

The Most Common Tax Scams to Watch For

Scammers have no shortage of tricks when it comes to stealing your personal info or refund. Some look official, others rely on fear—but they all have the same goal: to get your money or your identity. Here are the most common tax scams you need to watch out for:

Phishing Emails and Texts ("Your IRS Refund Is Ready")

These messages usually claim there’s a problem with your tax return or that a refund is waiting for you. They’ll include a link to “verify your info” or “check your refund status,” but that link often leads to a fake website designed to steal your Social Security number, bank details, or login credentials. The IRS offers detailed guidance on how to spot and report phishing scams, so it’s worth reviewing if you’re unsure what’s real and what’s not.

Red flag: The IRS doesn’t initiate contact via email, text, or social media DMs. If you get a message like this—don’t click anything.

Fake IRS Phone Calls ("You Owe Back Taxes")

This one’s aggressive. You might get a call from someone pretending to be from the IRS, claiming you owe back taxes and threatening arrest or legal action if you don’t pay immediately—usually through a wire transfer, prepaid debit card, or even gift cards. It’s more common than you’d think: since 2018, more than 75,000 people have lost a total of $28 million to scammers impersonating the IRS through phone calls, emails, texts, and more.

Red flag: The IRS never demands immediate payment over the phone and never asks for gift cards. Hang up.

Identity Theft Using Your SSN

One of the most damaging scams: someone files a fraudulent tax return using your Social Security number and claims your refund before you even file. This kind of tax fraud not only delays your refund but can also expose your personal and financial information to criminal use.

Red flag: If the IRS says you’ve already filed when you haven’t, or you get a tax transcript or refund you didn’t request, your identity may have been stolen.

Shady or Fake Tax Preparers

Not all scams come through email or phone. Some people posing as tax pros will file false returns on your behalf, inflate your deductions to increase their fee, or even reroute your refund to their own financial accounts. These scams often violate tax law and can leave you responsible for taxes owed, penalties, or even audits.

Red flag: Avoid anyone who won’t sign your return, promises a huge refund without reviewing your info, or asks you to deposit your refund into their account first.

IRS Impersonation on Social Media

Scammers have gotten more creative—some create fake IRS accounts on Instagram, TikTok, or Facebook, messaging taxpayers about fake issues or federal income tax withholding problems. These are designed to gain access to your personal data through phishing links or social engineering tactics.

Red flag: The real IRS doesn’t conduct business in your DMs. If you get a message like this, report it.

Refund and Stimulus Payment Scams

These surged during the pandemic and continue to circulate. Scammers send emails or texts about federal taxes, stimulus checks, or child tax credits, tricking people into handing over personal or financial information.

Red flag: The IRS won’t contact you this way. Always check your refund or payment status directly at IRS.gov.

Red Flags That Should Instantly Make You Suspicious

Tax scams can look official, but they almost always follow the same playbook. If you spot any of these warning signs, stop and double-check before sharing anything. Here are the biggest red flags:

• They demand unusual payment methods: If someone asks you to pay taxes using gift cards, wire transfers, or cryptocurrency—it's a scam. The federal government doesn’t collect taxes this way.
• They request sensitive personal or financial information out of nowhere: The IRS will never email, text, or DM you to request personal information, such as your bank account, Social Security number, or login credentials.
• They pressure you to act immediately: Scammers use fear to rush you into bad decisions. They may claim you’ll be arrested, lose benefits, or owe additional penalties if you don’t act now. But legitimate tax enforcement processes don’t work like that.
• They promise unrealistic refunds or results: Anyone guaranteeing a huge refund or encouraging you to avoid paying taxes by misreporting income or using fake deductions is likely running an abusive tax scheme. If it sounds too good to be true, it probably is—and you could be held responsible.
• They refuse to answer questions or provide verification: Real IRS employees will always verify their identity. Scammers, on the other hand, get defensive or vague if you push back.

How to Protect Yourself During Tax Season

Staying safe during tax season doesn’t have to be complicated. Scammers rely on confusion, urgency, and trust to trick people into handing over sensitive info or becoming part of a larger tax evasion scheme. Here are five smart ways to protect yourself:

1. File early and use trusted platforms.

The earlier you file, the harder it is for someone to submit a fraudulent tax return using your name. Use verified platforms or credentialed tax professionals—and watch out for tax preparer fraud, especially from people advertising on sketchy social media posts or sending unsolicited emails.

2. Enable multi-factor authentication.

Make it harder for scammers to access your financial accounts by turning on multi-factor authentication wherever you can. It’s one of the simplest ways to prevent unauthorized access. And don’t stop there—protecting your mobile device with cloud encryption can add another layer of defense, especially if you store tax documents, emails, or login credentials on your phone. Here’s why cloud encryption is worth it.

3. Never share personal info over email or text.

The IRS doesn’t contact people through email, text, or DMs to request personal or financial information. Scammers often use these tactics to steal data or trick you into clicking phishing links. If you're using your phone to file taxes or store sensitive data, make sure it's locked down. This guide breaks down simple ways to protect your mobile privacy and reduce the risk of getting scammed.

4. Monitor your IRS account.

Set up your official account at IRS.gov to track filings and catch anything suspicious—like someone reporting unreported income or filing a return under your name. For extra protection, the IRS offers an Identity Protection PIN (IP PIN)—a unique 6-digit code that adds a layer of security to your return. This guide explains how it works and why it’s worth setting up.

5. Vet your tax preparer.

Not all tax pros are legitimate. The overwhelming majority are trustworthy, but some operate outside the law—encouraging clients to avoid taxes, overstate deductions, or hide income. This can easily cross into criminal tax evasion, leaving you responsible for back taxes and penalties. Always verify your preparer’s credentials and never sign a return you didn’t review.

What to Do If You Think You’ve Been Scammed

If you think you’ve been hit by a tax scam, act fast. Here are five steps to take right away:

• Report it to the Internal Revenue Service: Go to IRS Identity Theft Central to report identity theft, freeze your tax account, and get help recovering your tax information.
• Forward phishing emails or texts to the IRS: Send scam messages claiming to be from the Internal Revenue Service to [email protected]. Reporting helps stop future attacks and protect the overall tax system.
• Report impersonation scams to the Treasury Inspector General: If someone contacted you pretending to be the IRS—especially threatening you to pay or claiming you owe money—report it to the Treasury Inspector General for Tax Administration (TIGTA) at tigta.gov.
• File Form 14039 and alert the FTC: If a fraudulent tax return was filed in your name, complete Form 14039 and file a complaint at IdentityTheft.gov. You may also want to file a police report if criminal activity is involved.
• Monitor your IRS account and stay alert: Watch for signs of tax preparer fraud, unreported income, or attempts to evade taxes using your identity—like sudden notices, refund delays, or offshore-related activity. Staying on top of your account is key to preventing further fraud.

Final Thoughts: Stay Smart, Stay Safe

Tax scams aren’t going away—they’re getting smarter. From phishing emails to fake preparers and IRS impersonators, scammers know how to exploit the cracks in the tax system. But knowing what to look for is your best defense.

Use trusted platforms, enable multi-factor authentication, and secure your personal data—especially on mobile. And if something feels off, it probably is.

The bottom line? You don’t need to be a tax expert to spot a scam—you just need to stay alert.