Scammers Are Adding to the Stress of Tax Season

The IRS is warning of fake messages meant to defraud taxpayers

Whether you’re filing taxes on your own or paying someone else to prepare a return on your behalf, tax season is nobody’s idea of a good time—not even if you’re expecting a refund.

Compounding the stress level is the fact that scammers are attempting to use the authority of the Internal Revenue Service (IRS) to pry money or personal data from U.S. taxpayers. In 2023 alone, the IRS received nearly 300,000 reports of tax-related identity theft, and there’s still a massive backlog in resolving these cases.

How IRS-related scams work

Along with identity thieves attempting to claim other people’s tax refunds, more and more fraudsters are posing as the IRS. They’re contacting people—often by phone, with the caller ID altered to match a legitimate IRS number—and demanding immediate payment of supposedly owed taxes, or asking for personal identifiable information (PII) in exchange for important updates about a refund.

Other IRS impersonators are sending official-looking emails telling people that there’s some issue with their tax account and they need to click a link for more information. (It’s a phishing attempt: The link leads to a phony website designed to harvest and misuse personal data.)

Fortunately, you can protect yourself during tax season. Here are some practical tips, as well as steps to take if you believe you’ve become a victim of tax-related fraud or identity theft.

How to avoid getting scammed during tax season

Know how the IRS contacts people. As a matter of policy, the IRS initiates contact with taxpayers only by mail. According to its website, the agency "doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information." It will also never "call to demand immediate payment using a specific payment method" or "call unexpectedly about a tax refund.” If the IRS does contact a taxpayer by phone, it’s typically only after mailed notices have gone unanswered. In short, if you get an unexpected call, email, or text claiming to be from the IRS, it’s overwhelmingly likely to be a scam.

Watch for fake letters. Just because the IRS contacts taxpayers by mail, that doesn’t mean any letter claiming to be from the IRS is legitimate. One relatively recent mail scam involves fraudsters sending notices on fake IRS letterhead, often in a priority envelope, telling people that they’ve got an unclaimed refund. The recipient is asked to call a number and provide sensitive personal information in exchange for the refund. If you receive one of these letters, don’t respond. Instead, check its legitimacy by contacting the IRS directly at (800) 829-1040.

Watch for aggressive collection tactics. Regardless of the type of message, be wary if the other party claims to be from the IRS and uses aggressive, high-pressure language—including threats of imprisonment or steep fines—to collect tax payment. Often, fraudsters will state an urgent deadline and direct you to send nontraditional forms of payment like cryptocurrency, debit cards, or gift cards. None of this remotely follows how the actual IRS operates.

File early and get a PIN. If your identity has been stolen as the result of a data breach, you might not know until it’s too late. (It often takes months for organizations to recognize a breach and notify affected consumers.) If criminals have your Social Security number and other relevant personal information, they may attempt to file a false tax return in your name. Stay ahead of them by filing your return as soon as possible. It’s also a good idea to get an Identity Protection PIN from the IRS, designed to prevent anyone else from filing a return in your name.

What to do if you suspect that you’ve been scammed

If you believe you’ve been victimized by fraud related to your tax return, report it to the IRS. You can also reach out to the Taxpayer Advocate Service, an independent organization housed within the IRS.

If your personal information has been compromised as a result of a data breach, be sure to watch for any signs of identity theft. One way to protect yourself year-round is through identity and privacy coverage such as IDX’s Complete Plan. In addition to advanced tools and services built to defend against common cyberthreats, it includes $1 million in identity theft insurance, continuous monitoring of your credit report and credit score, and access to IDX’s expert care team, who work to ensure your identity and reputation are fully restored.