10 Tax Scams You Need to Know and Tips to Protect Your Sensitive Information This Season

Tax season brings a rush of paperwork and deadlines, but it also opens the door for scammers looking to steal your money or personal information. Every year, thousands of people fall victim to tax-related fraud that can lead to financial loss and identity theft. Knowing the common scams and how to protect yourself is essential to keep your personal and business information safe. This guide highlights the top 10 tax scams and offers practical tips to safeguard your data during this critical time.

!Close-up view of a tax form with a red warning sign

1. Phishing Emails Pretending to Be the IRS

Scammers often send emails claiming to be from the IRS, asking for personal details like Social Security numbers or bank account information. These emails may look official but usually contain spelling errors or suspicious links.

How to protect yourself:

• The IRS never initiates contact by email or text asking for personal information.

• Do not click on links or download attachments from unknown senders.

• Verify any IRS communication by calling the official IRS phone number.

  
  

2. Phone Scams Threatening Arrest or Legal Action

Fraudsters call taxpayers pretending to be IRS agents, threatening arrest, deportation, or license suspension if immediate payment is not made.

How to protect yourself:

• The IRS does not demand immediate payment over the phone.

• Never provide payment information or personal details during unsolicited calls.

• Hang up and report the scam to the Treasury Inspector General for Tax Administration.

  
  

3. Fake Tax Return Preparers

Some dishonest tax preparers promise large refunds but file false returns using stolen information or inflate deductions.

How to protect yourself:

• Choose a preparer with a valid Preparer Tax Identification Number (PTIN).

• Avoid preparers who ask you to sign blank returns.

• Review your return carefully before signing.

  
  

4. Identity Theft Refund Fraud

Criminals use stolen Social Security numbers to file fraudulent tax returns and claim refunds.

How to protect yourself:

• File your tax return early to reduce the chance of someone else filing first.

• Use IRS Identity Protection PIN if eligible.

• Monitor your credit report regularly for unusual activity.

  
  

!Eye-level view of a locked filing cabinet with tax documents

5. Fake Charities and Donation Scams

Scammers create fake charities to trick taxpayers into donating money or claiming false deductions.

How to protect yourself:

• Verify charities through the IRS Tax Exempt Organization Search tool.

• Be cautious of high-pressure donation requests.

• Keep receipts and records of all charitable contributions.

  
  

6. Social Security Number Verification Scams

You may receive calls or emails asking to verify your Social Security number for tax purposes.

How to protect yourself:

• The IRS does not verify Social Security numbers by phone or email.

• Never provide your Social Security number unless you initiated the contact with a trusted source.

  
  

7. Tax Transcript Scams

Fraudsters request your tax transcript to steal your identity or file fraudulent returns.

How to protect yourself:

• Only request transcripts through the official IRS website.

• Do not share tax transcripts with unknown parties.

  
  

8. Overpayment Scams

Scammers send fake refund checks and ask you to send back the “excess” amount before the check bounces.

How to protect yourself:

• Wait for your refund to clear before spending or sending money.

• Verify refund amounts through the IRS “Where’s My Refund?” tool.

  
  

9. Business Tax Scams Targeting Employers

Fake IRS agents may contact businesses demanding payroll tax payments or threatening audits.

How to protect yourself:

• Confirm any IRS contact by calling the official IRS business hotline.

• Keep payroll and tax records secure.

• Educate employees about tax scam awareness.

  
  

!High angle view of a secure digital lock on a laptop keyboard

10. Tax Software and Website Scams

Fake tax software or websites steal your information or charge for free services.

How to protect yourself:

• Use only IRS-approved tax software providers.

• Avoid downloading software from unknown sources.

• Check for secure website connections (https) before entering sensitive data.