Ready or not, tax season has arrived, and sadly, that means tax scams are also on the rise. Each year from January to April, thieves send out a flurry of messages hoping to catch people off guard. After all, we willingly share personal information (and money) each year in the name of civic duty. Unfortunately, artificial intelligence (AI) has made it much harder to detect those sketchy phone calls, text messages, and emails.
What is ‘The Dirty Dozen’?
Each year, the Internal Revenue Service (IRS) compiles a list of tax scams known as the “Dirty Dozen“. It is essentially a heads-up to taxpayers and a rundown of the most common tax season schemes and issues. The annual list helps taxpayers stay alert as fraudsters search for increasingly clever ways to steal money, personal information, data, and more. Here are a few scams and schemes to avoid:
Email Phishing and Smishing Scams
Phishing scams are literally everywhere in today’s high-tech world. So, it’s no surprise that this common form of fraud is a thorn in the IRS’s side. Scammers send fake emails (phishing) or text messages (smishing) that look like they’re from the IRS or a tax-related organization. They often promise refunds or threaten penalties to trick you into handing over personal data (like Social Security numbers or bank info). These messages may even contain malware.
This time of year, phishing phone calls from fraudsters masquerading as IRS officials or agencies are also common. Once they connect, they pressure victims into providing personal, financial, or employment information, or they demand money to "fix an issue".
💡Stay Safe Tip: Remember, the IRS will never initiate contact by email, text, or social media to ask for personal financial information. They do not “leave pre-recorded, urgent, or threatening messages”. Never click on unsolicited communications claiming to be from the IRS (or any other government agency), as it may surreptitiously load malware.
Bad Social Media Advice and Scams
Social media is a great resource for recipes and craft ideas, but experts warn it’s not the best resource for tax advice. Case in point: the surge of social media scams encouraging people to artificially inflate their tax refunds using fake tax forms. Scam artists promote tax software designed to generate bogus forms with fake income, false withholdings, and phony records.
These scammers offer step-by-step instructions for claiming pets as dependents or inventing fictional employees. Some even suggest filing pandemic-era forms that are no longer valid. In addition to producing false tax records, this "software" may expose users to malware that can steal personal information and tax documents. Plus, filing false claims or inflating tax records can almost certainly lead to a penalty, and potentially, jail time.
False Tax Credit Claims
The IRS is also closely watching scams that push taxpayers to claim credits they don’t qualify for, including Fuel Tax Credits, Sick Leave and Family Leave Credits, the Earned Income Credit (EIC), the Additional Child Tax Credit (ACTC), and so-called “self-employment tax credits” that don’t actually exist.
These schemes often spread through social media, texts, or "tax help" websites promising easy money or overlooked refunds. In reality, the scammers aren't interested in your refund-they're after your personal data. To "help" you claim a credit, they'll ask for your Social Security number, date of birth, bank information, and income details. That's everything they need for identity theft.
Unfortunately for the unsuspecting taxpayer, some of those credits only apply to very specific situations, and claiming them incorrectly can trigger audits and penalties.
Sign Up/Verify Your IRS Account Scams
In an increasingly common scam, seemingly helpful “tax specialists” offer to help you set up your IRS online account, but don’t take the bait. They really want to steal the sensitive information you provide in the process—and may even file fake returns in your name. The IRS does offer legitimate accounts that allow you to set up payment plans and view your tax history, but the IRS warns that it will not solicit you to sign up. “An Online Account at IRS.gov can help taxpayers view important details about their tax situation,” said IRS Commissioner Danny Werfel. “But scammers have realized the sensitive information there is valuable to them, so they’re now focusing on tricking people [to think] they need help setting up an account.”
💡Stay Safe Tip: Account verification scams are also common and typically come in the form of emails, phone calls, letters, or text messages that appear to come from the IRS. The messages contain phony promises of refunds or empty threats of criminal charges and almost always include a link or phone number for you to “verify your account.” They are all scams. If you get a message claiming a refund or a problem, do not engage. Contact the IRS directly through their website.
Fake Charity Scams
Fraudulent charities aren’t a new issue, but they are particularly aggressive during tax season and around the holidays when unsuspecting people are looking to maximize their tax-deductible donations. What’s worse, these fake charities are often designed to take both your money and your personal data. So, be on high alert for phishing attempts and don’t donate in response to an email, text message, or phone call.
💡Stay Safe Tip: Never reply to or click on links in a random email or text asking for money—even from organizations you recognize. Instead, vet the organization (to make sure it’s legitimate) and donate through their official channels. You can verify nonprofits using the special IRS Tax Exempt Organization Search Tool or by visiting a charity evaluation website such as give.org, charitynavigator.org, and charitywatch.org.
Offer in Compromise Mills
An Offer in Compromise (OIC) is a legitimate IRS tool to settle tax debts when you truly can’t pay. It’s useful for people facing financial difficulties who need relief from their tax burden, but it’s also a haven for scam artists and unscrupulous companies who aggressively oversell the program to unqualified candidates. People commonly refer to these crooked companies (which collect hefty fees) as OIC mills. “People desperate for help can make a costly mistake if they clearly don’t qualify for the program,” says IRS Commissioner Danny Werfel. “Before using an aggressive promoter, we encourage people to review readily available IRS resources to help resolve a tax debt on their own without facing hefty fees.”
Overstated Withholding Scheme
This scam involves inflating wages or withholding amounts on forms like W-2s or 1099s to create the illusion that more tax was paid than actually was. The goal is to trigger a large refund based on money that was never withheld in the first place.
To pull this off, scammers ask for sensitive personal and employment information or provide fake forms for people to submit themselves, putting them at risk for both identity theft and IRS penalties. The IRS is actively flagging these returns, delaying refunds, and demanding verification. So, if the numbers don't check out, taxpayers may face penalties or audits-even if they were following someone else's advice.
Unscrupulous Tax Preparer and Ghost Preparer Scams
If you choose to use a tax professional for your 2025/2026 taxes, choose wisely. After all, you entrust them with your personal and financial information. In particular, the IRS recommends you watch out for “ghost preparers”. These are individuals unwilling to sign paperwork or use their IRS-issued Preparer Tax Identification Number (PTIN). With shady tax preparers, you are not only at risk for issues with your returns, but also at risk for identity theft and lost funds. To make sure you are not getting swindled, use a verified and trusted tax professional or legitimate tax software (like H&R Block or TurboTax).
New Client and Spear Phishing Scams Targeting Tax Pros
Scammers are also now targeting tax professionals directly. They pose as new clients and send malicious files or links designed to compromise systems. Once inside, they can harvest personal data from the tax preparer's entire client base.
Common IRS Scam Red Flags
If a communication about your taxes triggers any of the following, treat it as suspicious:
- Urgency. Be suspicious of emails, calls, or texts that ask you to act immediately to avoid penalty or legal action. Scammers want you to act quickly without considering the consequences.
- Unsolicited calls, texts, or emails requesting personal information. Government agencies will not initiate contact by phone, email, text, or social media to demand immediate payment or request sensitive personal information.
- A demand for money. Scammers often ask for gift cards, prepaid debit cards, or wire transfers—the IRS does not. The IRS may, however, mail you a bill and an official letter.
- Poor grammar, hostile tone, or awkward sentence structure. Legitimate agencies aim for professionalism and take their time to vet communications. If the person you are communicating with uses vulgar, threatening, or aggressive language, hang up. Contact the IRS (or whatever agency the caller claimed to be from) directly and report the call.
Dealing with the IRS can be scary. But if you understand how they communicate, you can quickly recognize when someone isn’t who they say they are. For added protection, file your taxes early. With taxes wrapped up long before the deadline, scammers will have little opportunity to impersonate or swindle you. If you work with a tax preparer, vet them properly and avoid anyone who claims they can get you a large refund before seeing your information.
If you suspect fraud, report it right away to the IRS and, if needed, reach out to us. We will walk you through the process of protecting your assets from future loss.
NOTE: If you need tax help or want to consult a professional about potential tax scams, you are in luck! Maps members are entitled to discounts on tax prep services from both H&R Block and Turbo Tax. As a member, you'll save up to 20% on TurboTax federal products or up to $25 off H&R Block professional tax prep.
