Imagine getting a call from someone claiming to be from the IRS. They know your name. They know your address. They may even reference part of your Social Security number. They warn that your assets could be frozen unless you act immediately. It sounds extreme — but it’s happening. According to the IRS, tax fraud costs Americans nearly $4.5 billion in 2025. And scammers are becoming more sophisticated each year, using artificial intelligence, deepfake voices, and highly convincing phishing messages. There are many different schemes that fraudsters are using to fool taxpayers this season. We broke each of them down in more detail. Key Insights According to the FBI’s Internet Crime Complaint Center, tax identity theft complaints in the past year increased by 26% from the prior year. The most common scams include IRS impersonation, phishing emails and texts, fake tax preparers, identity theft, and refund advance fraud. You can significantly reduce your risk by using reputable software, enabling two-factor authentication, and requesting an Identity Protection PIN (IP PIN). 7 Red Flags of Tax Scams Below are key red flags to watch for to avoid common tax scams this season: The IRS contacts you by text or email. The IRS does not initiate contact this way. Delete and report the message. You’re pressured to act immediately. Threats of arrest, frozen accounts, or “pay today” demands are scams. They demand gift cards, crypto, or wire transfers. The IRS does not require unusual payment methods. You’re promised a huge refund guarantee. No legitimate service can guarantee a specific refund. You’re asked to sign blank or incomplete forms. Never sign a return you haven’t reviewed fully. The tax preparer won’t provide a PTIN or a copy of your return. That’s a major red flag. The website looks slightly off or isn’t listed on IRS.gov. Always verify before entering personal information. Latest Tax Scams This Season Let's take a closer look at the most common tax scams to look out for. Tax identity theft This is the most rampant tax scam. It happens when someone gains access to your sensitive information and uses it for their own selfish purposes. During tax season, scammers may use it to file returns on your behalf. Then they seek tax refunds, but provide their bank details so the money is channeled there. In a recent TurboTax review #4436425, one taxpayer shared their experience of how “someone filed my taxes under my name.” Fraudsters “changed the bank and phone number” and took their money. As a result, this consumer lost $3,200. Tax filing support scams Many people find the tax filing process complex, so they opt to work with a tax preparer. However, you need to be aware of the increasing number of scammy tax preparers, especially during the tax season. The fake tax experts often aggressively advertise on social media and offer too-good-to-be-true benefits, such as bigger refunds, lower filing fees, and faster processing. One Reddit discussion highlighted how so-called tax experts promise huge refunds to unsuspecting clients and then disappear once the IRS flags the fraudulent filings. Typically, scammers do not include their names or PTINs, leaving their victims to face audits and thousands of dollars in repayments for refunds they should never have received by themselves. Source: reddit.com Email phishing scams Typically, phishing emails contain a link or attachment that leads to malware or spyware. Once you open the link or attachment, the malware or spyware is installed on your device, and scammers can read your personal and financial information. However, nowadays, this type of scam has evolved significantly. As artificial intelligence continues to advance, scammers are getting smarter and using it to create more sophisticated phishing scams. They use AI tools to generate phishing emails and messages that closely resemble official IRS or tax service communication. In other cases, scammers use AI-generated voices to make phone calls and leave voicemails posing as IRS agents. They may demand immediate payment of unpaid taxes and threaten legal action. At the same time, another expert, Max Avery, Capital Markets & Securities Analyst (CMSA) at Syndicately.com, says: …more insidious trend involves the use of deepfake technology. Fraudsters can manipulate audio and video to convincingly impersonate tax authorities, making it crucial for taxpayers to verify communication channels meticulously. IRS impersonation scams In IRS impersonation cases, scammers pose as IRS agents and call taxpayers. The fraudsters often use fake names and bogus IRS identification badge numbers to bolster their credibility. They may then ask you to provide personal and financial information, such as your name, Social Security number, and bank details. Or, they may claim that you owe the IRS or that there is a problem with your tax refunds. They create a sense of urgency and ask you to provide your information or make payments to resolve the issue. One user shared on Reddit how they almost fell for an IRS impersonation scam: I got a call from a Washington, D.C. number yesterday with an automated message telling me it was the Criminal Investigation Division of the IRS, and to call them back immediately. When they called back, the supposed IRS agent told the customer that all their assets had been frozen and that their accounts had been blacklisted. Luckily, the reviewer caught the scam when the fake IRS agent told him to pay the tax debt with a grocery store gift card. According to Jeff Rose, a certified financial planner, author, and blogger of GoodFinancialCents.com: Scammers are getting more sophisticated, using emails and texts that look like they're from the IRS or legitimate tax companies. They often create a sense of urgency, like claiming there's a problem with your tax return or refund. And the scary thing is how legit these emails and messages look! Tax refund advance scams Tax refund advance scams involve fraudulent offers promising immediate access to tax refunds before tax authorities like the IRS issue them. Scammers may target taxpayers eager to receive tax refunds quickly, especially during tax season. According to Robert Farrington, a money expert and founder of TheCollegeInvestor.com, Tax refund advance scams are increasing and taking advantage of consumers who aren’t aware of this tactic. These scams often involve promises of quick cash in exchange for personal and financial information. How to Stay Safe While Filing Taxes Below are some actionable tips to avoid tax scams and secure your personal and financial information during the tax filing process: Use only reputable tax software and ensure that it is up to date. Attorney Harrison E. James recommends that you “do your homework so that you know which companies have been named in connection with these kinds of unethical practices.” He then encourages consumers to “check the websites of these companies to see if they’ve installed the Meta Pixel or Google Analytics.” As the expert explains, “If the Meta Pixel or Google Analytics is on the pages that prompt you to input data, I recommend steering clear of that company.” Check trustworthy reviews before trusting a tax financial institution, using tax software, or hiring a tax preparer. Online reviews will give you an indication of the common issues customers encounter when returning items to a third party. Avoid companies and tax services with a low rating. Also, beware of those that have fake 5-star ratings. Install anti-malware and anti-spyware software and ensure that they are up to date. Also, set up two-step authentication for your email account. Request for an Identity Protection Personal Identification Number (IP PIN) from the IRS at the beginning of the tax season. You will be issued a unique 6-digit number that you provide when filing taxes. If a scammer attempted to file taxes on your behalf, they would not be able to complete the process without the IP PIN. If you receive a call from scammers posing as IRS agents, hang up immediately. Do not provide your personal or financial information to anyone, whether by phone, email, or text. How to Report Tax Scams To know how to protect your consumer rights is essential for getting positive customer experiences. Speaking about the ways to report tax scams, these are recommended organizations to do it: IRS website. If you receive spam emails, report them to the IRS by forwarding them to phishing@irs.gov. For IRS impersonation calls, submit a complaint on the IRS impersonation scam reporting portal. Federal Trade Commission (FTC). Report tax scams through the FTC online complaint assistant at https://reportfraud.ftc.gov/. File a complaint at your state Attorney General’s office. Be Vigilant Whether you are filing your income or federal tax returns, you must be cautious and protect yourself from potential scams. Be well-informed about common tax scams, how they present, and how to protect yourself. In case you fall victim, report to the relevant authorities such as the IRS, FTC, or your state attorney. Have you encountered tax scammers? Share your experience with other users. Report a Scam