Tax Scams Are on the Rise—Here’s How to Avoid Getting Duped This Season
It’s tax season, which means two things: crunching numbers and dodging scams. While you’re busy filing, fraudsters are working overtime to steal your refund, personal data, and hard-earned cash. In 2024 alone, the IRS reported over $9.1 billion lost to tax-related fraud. So, how can you stay ahead of the scammers?
I spoke with Michael Moore, Chief Information Officer at Next Perimeter, a leading cloud-first cybersecurity company, to break down the 12 most common tax scams and how to avoid them. From fake IRS agents to shady tax preparers, here’s what you need to know to file safely and keep your money where it belongs— in your pocket.
1. The Phantom Tax Preparer
Not all tax preparers are legit. Some shady “ghost” preparers file returns on your behalf but conveniently don’t sign them—which means if something goes wrong, you’re on the hook, not them. They might also tweak your numbers for a bigger refund and then disappear.
💡 How to avoid it: Work only with IRS-registered tax preparers and confirm they have a Preparer Tax Identification Number (PTIN).
2. The “You Owe the IRS” Scam
You get a call from someone claiming to be an IRS agent, demanding immediate payment for “unpaid taxes.” They’ll threaten arrest, deportation, or asset seizure—classic scare tactics.
💡 How to avoid it: The IRS never calls you out of the blue for payment. They always send official letters first. Hang up and contact the IRS directly.
3. The Too-Good-To-Be-True Refund Offer
Scammers posing as tax pros promise huge refunds—but only if you pay them a fee upfront. They file fraudulent returns in your name and vanish, leaving you to deal with the IRS.
💡 How to avoid it: If someone guarantees a massive refund, be skeptical. Use a reputable tax professional and always review your return before submission.
4. Phishing & Smishing Attacks
That email or text claiming to be from the IRS, asking you to “verify” your info? It’s a scam. Clicking on that link could expose your Social Security number and banking details.
💡 How to avoid it: The IRS doesn’t send emails, texts, or DMs about tax issues. Delete suspicious messages and never click unknown links.
5. Fake IRS Website Scam
Fraudsters create fake IRS websites that look eerily real, tricking you into entering sensitive information.
💡 How to avoid it: Always type www.irs.gov directly into your browser. Never trust links from emails or messages.
6. Bogus Charity Scams
After a disaster, fake charities pop up, claiming donations will get you a tax break. Instead, they pocket your money.
💡 How to avoid it: Verify charities via the IRS Tax Exempt Organization Search before donating. Avoid cash or gift card donations.
7. Social Media Tax Hoaxes
TikTok tax “hacks” might promise quick cash, but many involve fraudulent tax credits or scams that could land you in legal trouble.
💡 How to avoid it: If a tax tip isn’t from a legit tax expert, ignore it. If it sounds too good to be true, it probably is.
8. Fake Taxpayer Assistance
Some scammers pose as IRS reps, offering to help set up your online account—then they steal your refund and personal info.
💡 How to avoid it: Set up your IRS account yourself and never share login credentials.
9. The Identity Theft Tax Nightmare
You sit down to file, only to find out someone already filed in your name and stole your refund.
💡 How to avoid it: File early and use an IRS Identity Protection PIN (IP PIN) for extra security.
10. The Fake Debt Relief Service
Scammers promise to help settle tax debt for pennies on the dollar—but first, you have to pay a fee. Spoiler: they take your money and vanish.
💡 How to avoid it: The IRS offers legit tax relief programs—no upfront fees required.
11. The Trust & Tax Shelter Scam
Fraudsters claim that moving your money into a “special trust” will eliminate your tax burden—but it’s a scam, and you could face legal trouble.
💡 How to avoid it: Always consult a certified tax professional before using any tax strategy.
12. Senior & Non-English Speaker Scams
Scammers prey on retirees and non-English speakers, using intimidation to trick them into handing over money or personal info.
💡 How to avoid it: Educate elderly relatives and non-English speakers about common scams before they become targets.
Final Tips to Stay Safe This Tax Season
According to Michael Moore of Next Perimeter, the best defense against tax fraud is staying skeptical:
✅ File early to prevent scammers from filing in your name.
✅ Use strong passwords and enable two-factor authentication for tax software.
✅ Sign up for an IRS Identity Protection PIN for an extra layer of security.
✅ Only work with verified tax professionals—and if someone promises a huge refund, run the other way!
Tax season is already stressful—don’t let scammers make it worse. Slow down, verify, and protect your information. Your wallet will thank you later.
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