“The real enemy of safety is not non-compliance but non-thinking.” —Rob Long
Between urgent texts and aggressive phone calls to TikTok tax gurus promising massive refunds from secret credits, scammers are getting more and more creative.
So, to help you stay protected, I’m pulling back the curtain on six of the biggest scams circulating this year (with more to come next week) and the warning signs you need to watch for.
1. Fake news on social media
A few examples of bad social media tax advice that you might have seen come across your Facebook, Instagram, or TikTok feeds:
- False Fuel Tax Credit claims. This credit is narrowly targeted and probably doesn’t apply to you if you’re not self-employed. Yet social media promoters have pushed it like it’s a broad refund opportunity for everyone.
- Improper sick leave and family leave credit claims. These credits applied only to certain self-employed individuals, and only for specific pandemic-era tax years. A lot of people were encouraged to file for them even though they weren’t self-employed, or to claim the credits for years they didn’t apply to.
- The “self-employment tax credit.”There is no general credit by that name, even though promoters often use the label as if it were established tax law.
- Overstated withholding schemes.Some promoters have encouraged taxpayers to file returns showing fake wages, fake withholding, or even nonexistent employers to generate a refund.
2. IRS messages
The IRS does not contact you out of the blue by text message, email, or direct message on social media.
So if you receive a message that says your refund is on hold, your account needs to be verified, or you need to click a link to avoid enforcement, don’t click, reply, or call the number in the message. Go directly to the official IRS website yourself to check if there’s a real problem.
3. IRS phone calls
In very rare situations, the IRS may call you, but it will always first be preceded by a written notice sent by mail.
So, if someone calls claiming to be from the IRS and starts talking aggressively about overdue taxes, legal consequences, or urgent payment, assume it’s fraudulent. That is, unless you already have an established IRS issue and prior written notice.
4. Charity scams
Warning signs of a fake charity include:
- Pressure to donate immediately
- Requests for cash, gift cards, wire transfers, or digital currency
- Refusal to send written information
- Evasive answers about how the funds will actually be used
- Claims that you already pledged a donation when you did not
Also, if the organization claims your donation is tax-deductible, confirm that status through the IRS’s tax-exempt organization search tool.
5. IRS Online Account hacking
Scammers can use your stolen personal information to try to open or access your IRS online account. Or, they can pose as a helper, offering to set up the account for you while collecting the information to hijack it.
So, it’s important to adhere to a few smart guardrails:
- Create your IRS account directly through IRS.gov
- Do not use links from unsolicited texts, emails, or social messages
- Do not let an unknown third party help you set it up
- Use strong login credentials and keep your device security current
6. Form 2439 abuse
Form 2439 is an official IRS notice for shareholders of long-term capital gains, but it’s currently being used by scammers to create fake tax credits.
The IRS has warned that improper claims in this area can lead to refund delays and denied credits at best, and audits, penalties, and enforcement action at worst.
4 AI Scams to Avoid
Though there are always scammers out there trying to take advantage of you,we work hard to be the barrier between you and them. At TaxMaster Financial Services Corporation, we rely on verified IRS protocols and professional standards to keep your identity and your money safe.
To avoid tax scams, I used to be able to tell my clients: “Look for typos and suspicious attachments. And don’t believe the ‘IRS agent’ threatening arrest over the phone.”
But the era of the obvious scam is over.
AI-driven tax scams use more believable emails, websites, phone calls, and text messages to make bad tax advice or identity theft look legitimate.
These AI tax scams show up in 4 main ways:
- Deepfake and voice-cloned impersonation. A scammer can imitate the voice of a tax professional, employer, or family member and create pressure to act quickly.
- Hyper-realistic phishing emails. These may look like messages from your CPA firm, payroll provider, or the IRS and push you to click a link or upload documents.
- Fake tax preparer websites and AI “advisors.” Some are built to collect your personal data. Others are built to push fraudulent refund schemes.
- Automated text scams. Texts about a frozen refund, tax lien, or urgent verification issue are designed to get you to tap first and think later.
I always tell clients to verify the person and the process. If a message asks for sensitive tax information, pause and confirm through a known phone number or client portal.
Don’t use the link or number that came in the message itself.
A few other scams on the IRS’s Dirty Dozen List to keep your eye out for:
Ghost preparers: Ghost preparers prepare your return, collect the fee, and then disappear so you’re left holding all the risk. They typically won’t sign the return or include a PTIN.
Noncash charitable contributions: These schemes rely on inflated appraisals to create deductions that don’t reflect real fair market value. The donation may be real, but the tax benefit is built on a valuation the IRS may challenge, deny, and penalize.
Overstated withholding: Involves filing a return that claims false income and fake withholding amounts in order to trigger a refund that isn’t actually supported by real tax payments.
OIC mills: Offer in Compromise (OIC) mills take a real IRS program, the Offer in Compromise, and market it as though almost anyone can use it to wipe out tax debt cheaply and quickly.
Legitimate tax strategy that brings real savings is never a quick fix.
It’s a nuanced process that we work year-round to optimize for my clients.
So, if you want the peace of mind that comes with a professionally prepared and signed return (plus a continually optimized tax standing), we are here to help.
