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Bottom Line Up Front

  • Scammers are very active during tax season and use many tricks to try to get your personal information.
  • Never believe phone calls or emails claiming that you owe money or asking you directly for personal information.
  • If you don’t prepare and file your own taxes, be sure to work with a tax professional who’s certified by the IRS.

Time to Read

5 minutes

January 28, 2025

Tax season is just around the corner, which means tax scammers are sharpening their swindling skills. You can be prepared by learning about their favorite (and most successful) techniques.

Here’s how to protect yourself from fraud this year.

Phone calls from tax scammers

Although each scam call is slightly different, they all begin the same way: an unexpected caller who claims to represent the IRS or another government agency. The agency’s name may even show up on caller ID. The caller may say you owe taxes and will risk being arrested if you don’t pay them immediately.

Be especially wary of extremely realistic-sounding “vishing” (aka voice phishing) phone calls. Scammers now use AI technology to impersonate people by cloning voices and creating convincing conversations that sound like real IRS agents.

In a tricky twist on this premise, the caller may tell you your Social Security number (SSN) has been or will be suspended, and that you’ll need to confirm your number to reactivate it. In some cases, you might get a prerecorded message that demands a call-back.

What you should know

Here are some important things you should know about combating phone scams:

  1. The Social Security Administration (SSA) will never threaten your benefits, and the Internal Revenue Service (IRS) will never bring in law enforcement.
  2. Never provide any information about yourself over the phone, even if the caller knows the last 4 digits of your Social Security number. Hang up right away.
  3. If you owe taxes, the IRS will mail you a bill and allow you to request a payment plan. True IRS agents will never ask for credit or debit card information or demand that you pay with gift cards or a wire transfer. And, they’ll always tell you to pay the U.S. Treasury—not someone else. 

What you can do

Not sure if you owe taxes? Check the IRS website and see what payment options are available to you. You can also use the following numbers to call both the IRS and SSA to verify if what you’ve been told is true.

Email tax scams

Another common scam is an official-looking email that supposedly comes from the IRS. These “phishing” emails from fraudsters usually invite you to click a link for information about your tax return or refund, and may even include a temporary “password.” The link will appear to lead to IRS.gov, but it will actually send you to a fake website that captures your personal information.

What you should know

The IRS will never contact you by email, text message or social media. The agency only sends correspondence through the United States Postal Service (USPS).

Here is some more information about IRS email scams:

  1. Fake IRS emails usually have eye-catching subject lines like “IRS Important Notice” or “IRS Taxpayer Notice” because they’re very effective at getting people to open them.
  2. Scammers may spoof the sender’s email address to make it look like it came from the IRS. It may even have the official IRS logo inside to give the illusion of being authentic.
  3. Clicking the link will download malware that infects your computer. From there, it’s easy for the scammer to gain access to your financial information. 

What you can do

Don’t click on anything in the email. Immediately report suspicious tax-related emails to phishing@irs.gov.

Fraudulent tax preparation scams

The promise of a big tax refund is tempting, and tax preparation scammers know it. Fraudulent tax preparers will offer to do your taxes for a percentage of your expected refund. They’ll add information to your tax return to pump up that refund like fake or exaggerated deductions or credits. They may even falsify your income.

By the time the IRS catches the false information, the scammer is long gone. Unfortunately, you’ll be left to pay the consequences: more taxes, interest, penalties and possible criminal charges.

What you should know

Here are some important things to know about tax preparation scams:

  1. The IRS requires legitimate tax preparers to sign your return and include their Preparer Tax Identification Number. Unethical preparers won’t include this information.
  2. Scammers often require payment in cash and don’t provide you with a receipt. Others may even divert your tax refund directly to their own bank accounts.

What you can do

You can find a qualified tax professional in your area by visiting the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. Review your tax return carefully to make sure it’s accurate. If you’re due a refund, make sure your bank’s routing number and your bank account number are correct on the final return. 

Identity theft to steal tax refunds

If scammers manage to snag your SSN and other key identifying information, they can file a tax return in your name and claim a refund that belongs to you. You might not realize this has happened until you try to file a return yourself. At that point, your refund would be automatically rejected because the IRS allows individuals to file only one refund (unless it’s an amended filing). 

What you should know

Here are some steps to avoid stolen tax refunds via identity theft:

  1. Check that the earnings reported on your Social Security statement match your actual earnings.
  2. You’re more likely to prevent scammers from having time to file a fake tax return before you if you file your tax return early.
  3. The IRS now offers an Identity Protection PIN (IP PIN) program to all taxpayers. This 6-digit number helps to prevent fraudulent tax returns from being filed under your Social Security number.  Be sure not to share your PIN with anyone else.

What you can do

If the IRS rejects your tax return or you’ve received a notice from them about an issue, contact their Taxpayer Protection Program directly for help. They’ll ask you to prove your identity, so make sure you have documents like your birth certificate, Social Security card and at least one previous tax return.

Consider enrolling in the IP PIN program through the IRS website before filing your taxes. This extra layer of security can help protect your tax identity.

If you determine that you’ve become a victim of identity theft, the IRS suggests you take the following actions:

Outsmarting scammers for a successful tax filing season

Unfortunately, tax season is the most active time of year for scammers. If you come face-to-face with any of these scams this year, keep these tips in mind so you can safeguard yourself and file your taxes with peace of mind.

For more tips on protecting your accounts and outsmarting scammers, visit Navy Federal Credit Union’s Security Center.

Key Takeaways Key Takeaways

The IRS can suspend your Social Security benefits if you owe taxes.

High five!

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Next Question
What is the IRS’ preferred mode of communication?

Nailed it! USPS mail is the IRS’ preferred mode of communication.

Bummer.

Next Question
How can you confirm the legitimacy of a tax preparer?

Yay. To confirm the legitimacy of a tax preparer, ask for their Preparer Tax Identification Number, and confirm they’re legitimate through the IRS Dir

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Disclosures

This content is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.