Common Tax Scams to Avoid This Tax Season

1. IRS Impersonation Calls

IRS Impersonation calls are fraudulent calls where scammers pretend to be IRS agents demanding immediate payment. These fraudsters can sound convincing when they call; often using fake names and made-up IRS identification numbers to try to gain trust. They may know a lot about their targets, and they usually spoof the caller ID to make it look like the IRS is actually calling.

Victims are told they owe money to the IRS, and that it must be paid immediately through a prepaid debit card, gift card, or wire transfer. If the victim refuses to cooperate, they're often threatened with arrest, deportation, or suspension of a business or driver's license. Urgency tactics are commonly used to prey upon the victim's fear and anxiety. In many cases, the caller becomes hostile, insulting, and manipulating to try to cloud the victim’s better judgment.

Remember, the IRS will never:

• Call to demand immediate payment using a specific payment method like a gift card or prepaid debit card. Generally, the IRS will first mail you a bill if you owe any taxes.
• Threaten to immediately bring in local law enforcement to have you arrested for not paying.
• Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
• Ask for credit or debit card numbers over the phone.
• Call you about an unexpected refund.

What to do if you receive an IRS impersonation call

Phishing emails and smishing (text message) scams also surge during tax season. In these scams, fraudsters send fake emails and text messages pretending to be from the IRS, other financial institutions, or even tax software companies. You're often asked to click links that lead to fake websites or to open attachments. These bogus websites are designed by fraudsters to imitate official-looking websites, like IRS.gov. However, these websites are anything but official. They are used to steal your tax refund, Social Security number, login credentials, or other personal information. This personal or financial information can be used to help scammers file false tax returns on your behalf. The sites may also carry malware, which can infect people's computers and allow criminals to access your files or track your activity to gain information.

2. Phishing and Smishing Attacks

Phishing emails and smishing (text message) scams also surge during tax season. In these scams, fraudsters send fake emails and text messages pretending to be from the IRS, other financial institutions, or even tax software companies. You're often asked to click links that lead to fake websites or to open attachments. These bogus websites are designed by fraudsters to imitate official-looking websites, like IRS.gov. However, these websites are anything but official. They are used to steal your tax refund, Social Security number, login credentials, or other personal information. This personal or financial information can be used to help scammers file false tax returns on your behalf. The sites may also carry malware, which can infect people's computers and allow criminals to access your files or track your activity to gain information.

Email phishing scam: "update your IRS e-file"

One common phishing scam around tax season is receiving an email that appears, at first glance, to be from the IRS. The email includes a link to a fake website that mirrors the official IRS website. In it, you are directed to "update your IRS e-file immediately." The email, created by fraudsters, may mention USA.gov or IRSgov (without a dot between "IRS" and "gov") to trick you into believing that this email is legitimate.  However, be sure to look out for typos, poor grammar, and odd formatting, which are common with scams.

Don't get scammed! These emails are not from the IRS. Don't respond to the email or click on any links or attachments.

Instead, forward the phishing emails to the IRS at phishing@irs.gov, and delete them. The IRS never sends unsolicited emails or text messages asking for personal or financial information.

Tax refund scam artists posing as Taxpayer Advocacy Panel

In recent years, taxpayers have also been receiving emails that appear to be from the Taxpayer Advocacy Panel (TAP) offering help with a tax refund. These emails are a phishing scam designed to trick unsuspecting victims into providing personal and financial information. Don't reply to the email or interact with any links or attachments. If you receive an email that claims to be from TAP regarding your personal tax information, please forward it to the IRS at phishing@irs.gov.

The Taxpayer Advocacy Panel (TAP) is a volunteer board that advises the IRS on systemic issues affecting taxpayers. It never requests, and doesn't have access to, any taxpayer's personal or financial information such as Social Security and PIN numbers. Furthermore, TAP doesn't have access to passwords or other protected information for credit cards, credit unions, or other financial institutions.

3. Voice Cloning Scams

Voice cloning scams are quickly becoming a go-to tool for scammers, due to the advances in artificial intelligence (AI). In fact, AI voice cloning scams skyrocketed by 400% in 2025. In these scams, fraudsters use AI to create a near-flawless copy of someone's voice. Shockingly, scammers only need access to a three-second audio sample to convincingly clone someone's voice!

Scammers may clone the voice of a distressed family member or IRS agent to attempt to gain your trust. In many cases, they claim an emergency or urgent tax debt that needs immediate payment. By using a voice you know and trust, fraudster’s goal is to manipulate individuals into reacting fast. Since the situation is frequently presented as urgent and pressing, victims may not give themselves enough time before acting to pause and spot the red flags.

How to keep yourself safe from voice cloning scams

We know this scam can be alarming.  Here are a few recommended ways to help you spot the warning signs before it’s too late:

• Pause and verify: If a caller's voice sounds odd but familiar, take a moment and verify. Experts recommend calling the person back on a known number to confirm their identity and story. Don't use any number the caller provides.
• Create a family code word: You may want to consider creating a family "code word" to use in emergency situations. If the caller doesn't know the code word, hang up, and verify independently from a trusted number.
• Be skeptical of high-pressure tactics: Treat high-pressure calls with skepticism, especially if they involve a familiar voice. If something feels urgent or they pressure you to take immediate action, give yourself a moment to evaluate the situation to ensure you’re clear-headed.

Legitimate agencies and trusted individuals will let you verify them. For example, the IRS will never randomly call to demand payment. Once you have hung up, call the IRS directly at (800) 829-1040 to check any claim. Remember, report any attempted voice-cloning scam to authorities as soon as possible.

4. Ghost Tax Preparers

A "ghost" tax preparer is a fraudster who poses as a legitimate tax preparer. They regularly offer to handle clients’ taxes for a fee, while promising fast service and unusually large refunds.

Here are some warning signs that you may be dealing with a ghost tax preparer:

• They promise you a larger refund than you'd typically expect.
• They charge fees based on the percentage of your refund. This incentivizes claiming fake deductions or inventing income, so their clients qualify for tax credits.
• They refuse to sign or enter their Preparer Tax Identification Number (PTIN) on the tax return. Instead, they demand the taxpayer to sign and send it to the IRS themselves.  Know that any legitimate tax preparer will sign the return and provide you with a copy.
• They require payment in cash only and refused to provide a receipt.
• They request you deposit your refund into a bank account you don't recognize (often theirs), rather than your own account.

A ghost preparer essentially hides behind your return. Since they never enter their Preparer Tax Identification Number (PTIN) (because they often don’t have one) or signature, there's no official record of who prepared the tax return. If an audit or problem arises, you as the taxpayer are left to deal with the consequences. Victims of ghost tax scams often discover too late that the so-called “tax preparer” won't answer questions or even admit that they did the work.

How to protect yourself from ghost preparer scams

So, with an increasing number of ghost tax preparers out there, how do you protect yourself and your refund?  Here are a few ways:

• Always check for credentials (and a valid PTIN) prior to choosing a tax preparer to ensure they are reputable and licensed.
• Make sure you receive a signed copy of your return.
• Review the completed return before signing it and never sign a blank form.
• If someone encourages you to lie on your return or take unusual steps to increase your refund, walk away and report them.

Remember, you are legally responsible for what's on your tax return, even if someone else filled it out. If a tax preparer disappears after taking your money, the IRS will still come after you for any underpayment or fraud. By sticking with honest, credentialed preparers and making sure you're informed of the warning signs above, you can avoid the ghost preparer trap.

5. Online Account Setup Scams

Scammers have even created scams around the online services offered by the IRS. The IRS offers an official Online Account portal where taxpayers can view their payment history, current balance, and other information. Unfortunately, this sensitive information is valuable to fraudsters, as well. To gain access to, and steal taxpayer's personal information, scammers pose as a third party "helper." They promise assistance with setting up your IRS Online Account. They charge a fee, manipulating you into believing that setting up an account is difficult and time-consuming (when in reality it, is usually fast and simple).

Allowing another individual or third party to create your account does not save you time, however. It only opens you up for online account setup scams. The scammers often ask for your personal information. This includes your address, Social Security number, or Individual Taxpayer Identification Number (ITIN). They may also request photo identification. After they steal your information, they can sell it, or use it to file fraudulent tax returns, obtain loans, and even open credit card accounts.

How to protect yourself from online account setup scams

You don't need a middleman to help you create an IRS Online Account. You can (and should) set the account up yourself for free at the official IRS website. In fact, the IRS warns that in order to keep their information secure, "taxpayers can and should establish their own Online Account through IRS.gov.”

Here are a couple helpful tips to keep in mind to ensure you don't fall for an online account setup scam:

• Don't share your data or pay anyone to set up your IRS online account for you.
• If someone calls, emails, or texts you offering to handle your IRS login or account setup, hang up. It's likely it's a scam.
• Always navigate directly to IRS.gov and use the authenticated process there to set up your account.

By being aware of these "third-party help" scams and sticking to the official IRS website, you'll keep your personal information out of fraudsters' hands.

Stay Alert for Scams This Tax Season

While the tax season can be stressful and time-consuming, it's crucial to stay informed and alert to avoid falling victim to a tax scam. If something sounds too good to be true, it probably is. If someone is pressuring you to pay quickly, pause! Take a moment to evaluate the situation, without pressure, and think about what is being asked of you.

Always keep these common scams, red flags, and tips for protecting yourself top of mind, especially during tax season. Be sure to verify any suspicious contact through only official and trusted channels, and report scams when you see them. By doing this, you can safeguard your identity and make sure your tax filing goes smoothly and securely. Your tax refund belongs to you−not scammers!

For up-to-date information on the latest tax scams, the IRS and other tax agencies regularly issue scam warnings.

You can also find more valuable tax information and tips in our SmartLab blog articles.

This post is for informational purposes only. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.