Top 7 IRS Tax Scams You Must Know: How to Spot & Protect Yourself

Tax time comes with refunds, tax filing dates, and, to suggest, a huge surge in IRS scams. With tax scams, criminals are aware that individuals are overwhelmed by paperwork and terrified about the ramifications, and thus, one of the most lucrative frauds in the US to date. According to Mid-2025 reports, the number of refund redirect schemes, fake notices of the IRS, and identity-theft filings has increased dramatically and is making taxpayers lose billions annually.

The danger with these scams is their appearance and sound of realness. Fraudsters duplicate IRS logos, imitate government telephone numbers, and even refer to actual tax returns to help them build credibility. Any person can be targeted regardless of his or her age, income, or whether or not he or she has already made his or her filing. In case of any successful scam, it may result in drained bank accounts, stolen identities, or refunds that may take months.

This guide dissects the top seven IRS scams hurting your wallet the most and provides you with an accurate plan of action to detect and avoid those scams. Read it through and pay attention to patterns, not so much to the type of scam, but because scammers always adapt. When you know the red flags, you will be all the more difficult to fool and much better equipped to have a secure tax season.

Why IRS Tax Scams Continue to Trick Victims Today?

The frauds involving the IRS continue to succeed since it targets individuals on an emotional level. Panic sets in when one believes that their taxes are wrong or the IRS is putting their money in a hurry. Fraudsters rely on that moment of time before one begins to contemplate.

A few factors make these scams especially convincing:

• Most taxpayers aren’t familiar with how the IRS actually communicates
• Refund deadlines create a sense of urgency and pressure
• Tax documents involve sensitive financial and personal information
• People expect emails, texts, and portals for everything now, including taxes

Criminals are also adapting fast, and they use the following tactics.:

• Refund redirect attacks using stolen Social Security numbers
• Scams pretending to help with ERC and tax credits
• Phishing campaigns through SMS, WhatsApp, and social media DMs rather than emails
• Fake chatbot support pages pretending to be the IRS

These scams are built on psychological manipulation, not technical expertise. That’s why the strongest defense isn’t software, it’s awareness. Once you understand how scammers push urgency, fear, or greed, their tricks become obvious instead of intimidating.

When we break down the seven scams in the next section, note how each one relies on the same core tactic: forcing someone to react before they have verified. Recognizing that pattern is the key to staying safe.

7 IRS Tax Scams That Are Targeting Americans Right Now

These are the scams doing the most financial damage across the US right now. For each one, you’ll see how it works, who it targets, warning signs, and simple protection steps you can follow immediately.

Phishing Emails Claiming “Urgent IRS Action Required”

Scammers send emails that appear to be official IRS notices, warning that your refund is delayed or your return has been flagged. The messages push you to click a link to “verify” information, which actually leads to a spoofed IRS site that steals login credentials, Social Security numbers, and bank details.

Red flags:

• Generic greeting like “Dear taxpayer”
• Links pointing anywhere other than IRS.gov
• Attachments claiming to be tax forms or refund documents
• Tone that pressures you to act quickly

How to protect yourself:

• The IRS never asks for personal or banking information over email
• Access your tax account only by typing IRS.gov into the browser manually
• Delete emails you’re unsure about instead of clicking anything inside them

IRS Impersonation Calls and Voicemails

Fraud callers pretend to be IRS agents and demand immediate payment for back taxes, penalties, or “investigation fees.” Some threaten arrest, wage garnishment, or asset seizure if you don’t comply. Today’s scammers use caller ID spoofing to make the number appear as a government office.

Red flags:

• Caller threatens legal action or arrest
• Request for immediate payment without an appeal option
• The caller won’t provide written documentation

How to protect yourself:

• The IRS rarely calls unexpectedly and never demands immediate payment by phone
• Hang up, then contact the IRS directly through the number on IRS.gov if you’re uncertain

Tax Refund Redirect and Identity Theft

Scammers file tax returns under someone else’s stolen information, then redirect the refund to prepaid cards or digital wallets. Victims usually discover the fraud only when they try to file and get a message stating that a return has already been filed in their name.

Red flags:

• IRS alert that a return was filed before yours
• Refund status showing a deposit you never received
• Tax transcript access attempts you didn’t make

How to protect yourself:

• Create and secure your IRS online account before scammers do
• File early to reduce the window for identity theft
• If you suspect refund theft, report it immediately and explore tax fraud recovery options.

“Ghost” Tax Preparers Charging Upfront Fees

These so-called tax experts charge high fees and claim huge refunds, then disappear without signing the return. They often commit fraud using inflated deductions or fake dependents, leaving the taxpayer legally responsible for penalties later.

Red flags:

• Refuses to sign the return or provide PTIN
• Guarantees unusually large refunds
• Requests cash-only payments

How to protect yourself:

• Use only credentialed preparers and confirm their PTIN on the IRS directory
• Always review your complete tax return before filing

ERC and Tax Credit Scam Promotions

Scammers promise big payouts from the Employee Retention Credit and other tax incentives, even for people who don’t qualify. Many charge high upfront fees or collect a percentage of the refund before disappearing or worse, filing fraudulent claims in your name.

Red flags:

• Advertisements saying “Everyone qualifies”
• Requests for financial details before eligibility screening
• Cold calls or messages from unknown “tax consultants”

How to protect yourself:

• Verify ERC eligibility through official IRS guidance
• Be wary of preparers who are paid based on the size of your refund

Payment Scams Using Gift Cards, Crypto, or Wire Transfers

These scams claim you must pay a tax balance right now to avoid legal trouble. Scammers direct victims to buy gift cards or deposit crypto to settle the “balance.” Mid-2025 reports show a strong surge in scams involving USDC stablecoin payments.

Red flags:

• Payment instructions that avoid bank transfers or checks
• Claims that payments can “stop a lawsuit in progress”
• Threats to involve the police

How to protect yourself:

• The IRS accepts payments only through approved methods listed on IRS.gov
• No government agency asks for gift cards or crypto payments for taxes

Charity and Disaster-Relief Tax Deduction Scams

Disaster-themed scams pop up after floods, wildfires, hurricanes, and international crises. Fake charities contact people directly through phone, email, or crowdfunding links and promise tax-deductible receipts in exchange for donations.

Red flags:

• The charity name is almost identical to a legitimate nonprofit
• Donation requested through personal payment apps
• No transparency about how funds are used

How to protect yourself:

• Donate only to charities listed on the IRS Tax-Exempt Organization Search
• Avoid links sent through social media or messaging platforms

Key IRS Scam Statistics You Should Know

Scammers are getting more organized, more persistent, and harder to detect. The numbers coming from mid-2025 reports show how quickly tax-related fraud is expanding, especially around refund theft and digital payment requests. While the IRS continues to flag new patterns in its annual Dirty Dozen list, criminals are adapting faster than many taxpayers expect.

Here’s a quick snapshot of what’s happening right now:

Category	2024	Mid-2025 Trend
IRS phishing complaints	Rising	+22%
Fraudulent refund filings	Rising	+31%
Identity theft tax claims	Rising	+19%
Scam calls reported	Falling	−8% (shifting to SMS and messaging apps)
Crypto / gift-card scam payments	Surging	+43%

A drop in phone scams doesn’t mean fraud is shrinking. Criminals are shifting platforms, not slowing down. Their newest targets are taxpayers who rely heavily on email, WhatsApp, or mobile banking apps. That’s why scammers can hit anyone, even people who’ve filed taxes for decades without any issues.

Knowing these numbers helps you spot where the biggest risks are right now. The more aware you are of the current patterns, the easier it becomes to catch a scam before it causes damage.

How to Verify That the IRS is Really Contacting You?

Most IRS scams succeed because people don’t know what real IRS communication looks like. When you know how the IRS actually operates, spotting a fake message becomes a lot easier.

Here’s the simplest rule to remember: the IRS never contacts taxpayers for the first time by phone, text, email, or social media. The first point of contact is almost always a physical letter sent by mail.

To make things clearer, here’s a direct comparison:

IRS Will	IRS Will Never
Send an official letter first	Threaten arrest or property seizure by phone
Give taxpayers the right to appeal	Demand payment within minutes
Direct you to IRS.gov for secure info	Request gift cards, crypto, or wire transfers
Allow payment plans for most debts	Ask for banking or login details by call or email
Identify agents with a valid badge number	Ask you to stay on the line to avoid “legal action”

A good verification ritual is to pause and check three things whenever you receive a tax-related message:

1. Does it start with a mailed IRS letter? If not, it’s almost certainly fake.
2. Does it pressure you to act immediately? The IRS does not demand split-second payments.
3. Does it direct you anywhere other than IRS.gov? The IRS doesn’t use look-alike sites or shortened links.

If you’re ever truly unsure, the safest approach is to ignore the message and contact the IRS using the phone number listed on IRS.gov, not a number provided in a message. Scammers rely on urgency. The moment you slow down, their leverage disappears.

What To Do If You Think You’re a Victim of an IRS Tax Scam?

A lot of people freeze when they realize they may have interacted with a scammer. The important thing is to act quickly and create a clear record of what happened. Fast action increases the chances of protecting your identity, stopping financial damage, or recovering what you’ve lost.

Here’s what to do step by step:

• Cut off communication immediately:
  Don’t reply to messages, emails, or calls. Scammers try to keep you engaged to collect more information.
  
• Save evidence:
  Take screenshots, record call details, save emails, and note payment receipts, if any. This helps with reporting and recovery.
  
• Create or log in to your IRS online account:
  Check for suspicious activity like an already-filed return, refund changes, or transcript access requests.
  
• Report the incident to the IRS and FTC:
  • Report phishing attempts to phishing@irs.gov 
  • Report refund or identity-theft fraud using Form 14039
    
• Freeze your credit if personal details were exposed. It prevents scammers from opening loans or accounts in your name.
  
• If money or a refund was stolen, explore recovery support. Professional investigation services can help trace stolen funds or fraudulent tax activity.

Even if you’re not sure a scam occurred, it’s better to act early than wait for damage to show up later. Most victims discover issues weeks or months after filing, which makes recovery harder. Treat suspicion as a warning, not a mistake.

Practical Ways to Protect Yourself From IRS Tax Scams

You don’t need advanced cybersecurity tools to defend yourself from IRS scams. Most of the protection comes from simple habits that stop scammers before they get close.

Here are the most reliable ways to stay safe:

• File your taxes early:

The earlier you file, the smaller the window scammers have to submit a fake return in your name.

• Create and secure your IRS online account:

This prevents scammers from registering an account using your identity before you do.

• Use strong passwords and two-factor authentication on tax software:

Many refund theft cases start with weak or reused passwords.

• Verify tax professionals before sharing personal documents:

Always check for a PTIN (Preparer Tax Identification Number) on the IRS directory.

• Don’t trust refund updates from emails, texts, or links:

The only safe place to check your refund is directly on IRS.gov.

• Avoid responding to unsolicited calls or messages about taxes:

Even if the message sounds official or uses accurate personal details.

• Keep copies of tax records offline:

Store sensitive tax paperwork in a secure place rather than cloud drives or email.

These steps don’t take long, and once they’re in place, you’ll automatically block the most common forms of tax fraud. Security isn’t about fear. It’s about staying one step ahead.

When Should You Seek Professional Help for IRS Tax Scams?

Some tax scam situations can be handled on your own, but others get complicated fast. The longer a scammer has access to your identity or tax record, the harder it becomes to reverse the damage. There are moments when bringing in a professional isn’t just helpful, it’s the smartest move.

You may want expert support if any of these apply to you:

• A tax return was filed in your name before you submitted yours
• Your refund was redirected to someone else’s bank account, prepaid card, or crypto wallet
• Your Social Security number or tax transcript was exposed
• A preparer filed incorrect deductions or dependents without your approval
• You received penalties because of a fraudulent return

In those cases, you’re not dealing with a simple scam anymore. You’re dealing with identity theft or return fraud, and the IRS recovery process can take months without the right documentation, evidence, and follow-up.

If you’re stuck in a dispute or have been impacted by unfair tax practices, professional recovery services can help untangle the situation and protect you from further loss.

Before We Wrap Up: Why Staying Alert Matters Most

Tax scams are designed to catch people off guard, not uneducated. Even smart, financially responsible taxpayers fall for these schemes because scammers create pressure, urgency, and fear so quickly that people react before they verify. The good news is that once you learn the patterns, their tactics lose most of their power.

Here’s the one takeaway worth remembering:

The IRS will never demand instant payment, threaten arrest, or ask for sensitive details over calls, emails, texts, or social apps.

The moment you see any of those signs, you’re not dealing with the IRS, you’re dealing with a scam.

Staying alert doesn’t mean living in fear. It simply means slowing down for a moment before responding. Verify the source, check IRS.gov for confirmation, and don’t let anyone rush you into a decision. That small pause could be what protects your refund, your identity, and your financial security this tax season.

FAQs About IRS Tax Scams