Common Tax Scams to Avoid This Tax Season

Tax season has a way of sneaking up on all of us.  One minute you’re collecting and organizing W-2s and 1099s, tracking down receipts, and totaling last year’s expenses.  The next, you’re racing against the clock to file on time.  While filing taxes can be stressful enough, there’s another growing concern taxpayers should prepare themselves for: tax scams.

Each year, fraudsters ramp up their efforts during tax season. They target taxpayers with increasingly sophisticated scams. These scams are designed to steal personal information, financial data, and tax refunds.  Although tax scams occur year-round, criminals exploit IRS updates to make their schemes more convincing. They utilize new technology and filing deadlines during this time.

In 2026, tax scams are more advanced than ever.  From IRS impersonation attempts and AI-driven voice cloning to fraudulent or “ghost” tax preparers, these scams can be increasingly difficult to detect.

Below, we'll look at five major tax scams to watch for this season. We'll also provide tips to help protect your identity, safeguard your information, and keep your refund.

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5 Wise Ways to Spend Your Tax Refund

It’s tax season once again…have you filed your return? April 15th is this year’s deadline, and you can also file for an extension which extends your timeline to October 15th. (Pro tip: To avoid the fees often associated with tax prep sites, eligible individuals can head over to the IRS for free online filing options.)

In 2023 the average tax refund was $2,753, and many are seeing higher returns this year due to changes the IRS made to counteract inflation. Not sure how to optimize your return? We offer several suggestions for recipients on investing wisely.

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Employee Retention Tax Credit (ERTC) Service

The ERTC is a refundable credit that businesses can claim on qualified wages, including certain health insurance costs, paid to employees. The qualifying amount of the claim could be impacted by the laws that were in place at the time wages were paid, including:

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California Inflation Relief Checks

Information on this topic is accurate as of 8/15/2022. For the most recent information, please visit the California Franchise Tax Board website.

More than 20 million Californians can expect a new round of direct payments to hit their bank accounts this year, Governor Gavin Newsom announced. The state is issuing payments up to $1,050 in what the governor called a new “Middle Class Tax Refund.” The direct payments are part of an inflation relief package.

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Should You Hire a Tax Professional?

Most people tend to file their income taxes electronically by using tax preparation software or by hiring a tax professional. Only a brave 10% of taxpayers fill out and file paper forms, presumably without much assistance. Like most decisions related to money, it's important to carefully consider your filing options since a simple error could result in a costly mistake.

As you gather your W-2s, 1099s, or other tax documents, consider the pros and cons of the DIY approach versus hiring a tax professional.

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