Tax Scams Are on the Rise—Here’s How to Protect Yourself

Tax season is prime time for scammers looking to steal your money, personal information, and even your tax refund. The IRS issues regular warnings about fraud schemes, yet thousands of taxpayers fall victim every year.

Knowing how to recognize IRS scams, tax fraud, and identity theft schemes is critical to keeping your finances safe. This guide will show you how to spot tax-related scams and what to do if you become a victim.

Common Tax-Related Scams

1. IRS Phone Scams

Scammers often pose as IRS agents, calling taxpayers and claiming they owe unpaid taxes. These calls can be aggressive and threatening, often demanding immediate payment via:

• Wire transfers
• Gift cards
• Prepaid debit cards

How to Spot the Scam:

• The IRS never calls to demand immediate payment over the phone.
• The agency will always send a written notice before initiating contact.
• The IRS does not threaten arrest or lawsuits for non-payment.

If you receive one of these calls, hang up immediately and report it to the IRS at www.irs.gov.

2. Phishing Emails and Text Messages

Scammers send fake IRS emails and text messages claiming there is an issue with your tax return or refund. These messages contain malicious links that, when clicked, install malware or steal your personal information.

How to Spot the Scam:

• The IRS does not send unsolicited emails or texts about tax issues.
• Look for misspelled words, generic greetings, and urgent requests for action.
• Never click links in suspicious emails—go directly to www.irs.gov for information.

If you receive a phishing email, forward it to phishing@irs.gov and delete it.

3. Tax Return and Identity Theft

Tax identity theft occurs when a scammer files a fraudulent tax return in your name to claim a refund. Victims often don’t realize they’ve been targeted until the IRS rejects their legitimate return.

How to Protect Yourself:

• File your taxes early before scammers can.
• Use Identity Protection PINs (IP PINs) from the IRS to secure your return.
• Check your IRS account regularly for suspicious activity.

If the IRS rejects your return due to a duplicate filing, report it immediately at 1-800-908-4490.

4. Fake Tax Relief and Settlement Offers

Some companies claim they can settle tax debt for “pennies on the dollar” through an Offer in Compromise (OIC), but many of these offers are scams. These fraudulent firms:

• Charge large upfront fees without delivering results
• Misrepresent IRS tax relief programs
• Disappear after taking payment

How to Spot the Scam:

• If a company guarantees they can settle your tax debt for a fraction of what you owe, be skeptical.
• The IRS has strict eligibility criteria for tax debt relief programs.
• Only licensed tax professionals (enrolled agents, CPAs, and tax attorneys) can represent you in tax resolution cases.

If you need legitimate tax relief, work with a reputable tax resolution firm like IRS Trouble Solvers.

5. Fraudulent Tax Preparers

Some tax preparers take advantage of their clients by:

• Falsifying deductions to inflate refunds
• Charging hidden fees or taking a percentage of refunds
• Stealing tax refund checks

How to Protect Yourself:

• Only use licensed tax professionals with IRS Preparer Tax Identification Numbers (PTINs).
• Review your tax return before signing—never sign a blank tax return.
• Ensure your refund is deposited directly into your bank account, not the preparer’s.

Verify a tax preparer’s credentials using the IRS Directory of Federal Tax Return Preparers at www.irs.gov.

What to Do If You’ve Been Targeted by a Tax Scam

If you believe you are a victim of a tax scam, take these steps immediately:

1. Report IRS Impersonation Scams
Call the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or report the scam online at www.tigta.gov.

2. Report Tax Fraud and Phishing
Forward phishing emails to phishing@irs.gov and delete them.

3. Contact the IRS Identity Theft Unit
If you suspect tax identity theft, call the IRS at 1-800-908-4490 and file Form 14039, Identity Theft Affidavit.

4. Monitor Your Credit Report
Tax-related identity theft can lead to financial fraud. Check your credit report at www.annualcreditreport.com for suspicious activity.

5. Work with a Tax Resolution Specialist
If a fraudulent preparer or scam caused IRS issues, a tax resolution professional can help fix your tax records, dispute fraudulent charges, and negotiate with the IRS on your behalf.

Stay Protected from Tax Scams

Tax scams are becoming more sophisticated, but knowing the warning signs can help you avoid financial loss and identity theft. Always stay vigilant, verify IRS communications, and seek professional help if you encounter tax fraud.

If you need assistance resolving tax issues caused by a scam, IRS Trouble Solvers can help. Contact us today for a free consultation and let our tax resolution experts protect your finances.

Call us at 877-4-IRSLAW
Visit www.irstroublesolvers.com to schedule a consultation.