Tax scams peak every year during filing season and cost Americans hundreds of millions of dollars annually. They range from aggressive phone calls impersonating the IRS to sophisticated identity theft schemes where a fraudster files a tax return in your name and collects your refund before you ever do. Knowing what these scams look like — and what the real IRS actually does and doesn’t do — is the most effective defense.
IRS Impersonation Calls
The most common tax scam is a phone call from someone claiming to be an IRS agent. The caller says you owe back taxes and must pay immediately or face arrest, deportation, license revocation, or other threats. The urgency and fear are deliberate — the goal is to get you to pay before you have time to verify.
How to recognize it:
- The caller demands immediate payment — today, right now.
- The caller insists on a specific payment method: gift cards (most common), wire transfer, or cryptocurrency. Legitimate government agencies do not accept gift cards as payment.
- The caller threatens arrest, police, immigration enforcement, or license suspension.
- The caller is hostile and won’t let you call back or verify.
- Caller ID shows “IRS” or a Washington D.C. area code — caller ID can be spoofed easily.
The real IRS will never: call demanding immediate payment without first sending a bill by mail, threaten arrest for non-payment, demand a specific payment method, or ask for payment via gift card. If you receive this type of call, hang up. You can verify your actual IRS account status at IRS.gov/account or call 1-800-829-1040.
Phishing Emails and Texts
Phishing emails and texts impersonate the IRS or tax software companies (TurboTax, H&R Block, the IRS Free File program) to steal your personal information or credentials. Common scenarios:
- “Your tax refund has been approved — click here to claim it”
- “Your e-filed return was rejected — verify your information”
- “Unusual activity detected on your IRS account — confirm your identity”
- Fake W-2 or 1099 attachments containing malware
The IRS does not initiate contact by email, text, or social media. Any email claiming to be from the IRS asking you to click a link, open an attachment, or provide personal information is a phishing attempt. Forward suspicious IRS-related emails to phishing@irs.gov. Do not click any links or open attachments.
Tax Identity Theft
Tax identity theft occurs when someone uses your Social Security number to file a fraudulent tax return and claim your refund before you file. You typically discover it when you try to e-file your legitimate return and the IRS rejects it because a return has already been filed under your SSN.
Warning signs:
- Your e-filed return is rejected because the IRS already received a return for your SSN.
- You receive a refund you didn’t expect or a notice about a return you didn’t file.
- You receive an IRS notice for a year you didn’t file.
- IRS records show wages from an employer you didn’t work for.
What to do if you suspect tax identity theft:
- File a paper return immediately if your e-file was rejected due to a duplicate SSN.
- Complete IRS Form 14039 (Identity Theft Affidavit) and submit it to the IRS.
- File a complaint at IdentityTheft.gov (FTC’s identity theft resource).
- Place a fraud alert or credit freeze at the three major credit bureaus.
- Request an IRS Identity Protection PIN (IP PIN) — a six-digit number the IRS gives you that must be included on any future return filed with your SSN. Any return without the IP PIN will be rejected. Apply at IRS.gov/ippin.
The IP PIN program is open to any U.S. taxpayer who wants one — not just identity theft victims. It’s one of the best proactive defenses against tax identity theft.
Ghost Tax Preparers
A “ghost preparer” is someone who prepares your tax return for pay but refuses to sign it — a legal requirement for paid preparers. Ghost preparers often promise inflated refunds by fabricating deductions or credits you don’t qualify for. The return looks good to you — until the IRS audits it and you’re held responsible for every fraudulent entry.
How to spot a ghost preparer:
- Refuses to sign the return or leaves the preparer ID section blank.
- Asks you to sign a blank return.
- Charges fees based on a percentage of your refund.
- Promises a refund before looking at your documents.
- Insists on depositing your refund into their bank account rather than yours.
All paid tax preparers are required to have a Preparer Tax Identification Number (PTIN) and must sign every return they prepare. You can verify whether a preparer is credentialed (CPA, enrolled agent, or tax attorney) at IRS.gov/tax-professionals. Using an uncredentialed ghost preparer exposes you to penalties and back taxes for fraudulent deductions you claimed — even if you didn’t know they were false.
Fake Charities and Inflated Deductions
During tax season, scammers sometimes solicit donations to fake charities, knowing donors will try to claim deductions. Others offer to “help” you inflate deductions for charitable donations you didn’t actually make, in exchange for a fee.
Verify a charity’s tax-exempt status at IRS.gov/charities before donating if you plan to claim a deduction. Only donations to IRS-recognized 501(c)(3) organizations are deductible. Contributions to individuals, political organizations, and crowdfunding campaigns are generally not deductible.
Social Media Tax Advice Scams
A newer trend: social media posts and videos promoting false “tax hacks” — such as claiming the fuel tax credit for personal vehicles, reporting fake business losses, or deducting personal expenses as business expenses. These schemes circulate as viral “tips,” but they’re based on misrepresentations of tax law.
Filing false claims can result in penalties, interest, and even criminal prosecution. The IRS monitors for these patterns. If you see a “tax tip” on social media that seems too good to be true, verify it with IRS.gov or a qualified tax professional before acting on it.
Report Tax Scams
- IRS impersonation calls: Report to the Treasury Inspector General at 1-800-366-4484 or TIGTA.gov
- Phishing emails: Forward to phishing@irs.gov
- Tax identity theft: File Form 14039 and report to IdentityTheft.gov
- Fraudulent tax preparers: Report to the IRS at IRS.gov/complaint
- Fake charities: Report to the IRS at IRS.gov/charities
Further Reading
- What to Do If You Get an IRS Notice
- Protect Against Bank Fraud
- How to File Your Taxes: A Step-by-Step Guide
- Taxes Overview
This article is for general educational purposes only and does not constitute tax or financial advice. Tax laws change and individual situations vary – consult a qualified tax professional or the IRS for guidance on your specific situation.
