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Every spring, as millions of Americans scramble to meet the April filing deadline, another group gets busy too: scammers. Tax season is one of the most lucrative periods of the year for fraudsters, who exploit the anxiety, confusion, and urgency that comes with filing returns. Whether it's a fake IRS email, a ghost tax preparer, or an AI-generated phone call from your "accountant," the threats are real, growing, and increasingly sophisticated.
This article breaks down the most common tax season scams you need to know about, backed by data from the IRS, the Federal Trade Commission, and other federal watchdog agencies, so you can protect yourself, your refund, and your identity.
The Scope of the Problem
Before diving into specific scams, it's worth understanding just how large the problem has become. The numbers are staggering. IRS Criminal Investigation's FY 2024 Annual Report shows the agency uncovered more than $9.1 billion in fraud from tax and financial crimes, obtained court orders totaling $1.7 billion in restitution, and seized approximately $1.2 billion in criminal assets.
The broader fraud landscape tells a similar story. Scammers are not just stealing from individual taxpayers; they are exploiting government relief programs, small businesses, and elderly Americans on fixed incomes. The FTC's 2024 Consumer Sentinel Network Data Book reports that U.S. consumers lost more than $12.5 billion to fraud in 2024, a 25% increase over 2023, with more than 1.1 million identity theft reports received through IdentityTheft.gov that same year.
What's particularly alarming is not just the total losses, but the rate at which scam victims are actually losing money. The FTC found that in 2024, 38% of people who reported a fraud said they lost money, up sharply from 27% in 2023. Scammers are getting better at closing the deal.
Phishing and Smishing: The Most Common Entry Point
The most widespread tax scams start with a simple message: an email or text that appears to come from the IRS or a state tax agency. These are called phishing (email-based) and smishing (text-based) scams, and they are designed to panic you into clicking a link or handing over personal information.
A typical phishing email might tell you that your refund has been "processed" and that you need to verify your identity by clicking a link. That link leads to a fake website that harvests your Social Security number, bank account information, and other sensitive data. Similarly, smishing texts often claim you owe back taxes or have an unclaimed refund waiting, all designed to push you to act quickly without thinking.
According to the FTC Consumer Sentinel Network Data Book, losses to government imposter scams, which include fake IRS contacts, totaled $789 million in 2024, an increase of $171 million from 2023. For the second year in a row, email was the most common method scammers used to contact victims.
The critical thing to know: the IRS will never contact you by email, text, or social media to request personal or financial information. If the agency needs to reach you, it sends a letter through the U.S. Postal Service. Any unsolicited digital message claiming to be from the IRS should be treated as a scam. If you receive a suspicious email claiming to be from the IRS, forward it to phishing@irs.gov and then delete it. Suspicious texts can be forwarded to 7726 (SPAM).
AI-Powered Scams: The New Frontier
Traditional advice about scams is increasingly insufficient as scammers adopt artificial intelligence tools. AI now allows fraudsters to generate convincing fake emails, produce realistic phishing websites, and even clone voices.
Voice cloning scams are a particularly alarming new threat. If a scammer can obtain even a few seconds of a voice recording from a social media video, a podcast, or a voicemail, they can generate a fake phone call that sounds exactly like your accountant, financial advisor, or even a family member, asking you to share sensitive tax information or transfer funds immediately.
CNBC Select reports that scammers are now using AI to create convincing fake emails, deepfake phone calls, and phishing texts that impersonate the IRS, tax software providers, or even your accountant. With an estimated 90% of taxpayers filing online, scammers have more digital surfaces than ever to exploit.
Defending against AI-assisted scams requires a new level of skepticism. Even if a caller sounds exactly like someone you trust, hang up and call them back on a verified phone number before sharing any information or taking any action.
Identity Theft: When Someone Files Before You Do
Tax-related identity theft is one of the most damaging scams a person can face. It occurs when a criminal uses your stolen Social Security number to file a fraudulent tax return and claim your refund before you do. Many victims don't discover the crime until they try to file their own legitimate return and receive an error saying one has already been submitted.
The IRS National Taxpayer Advocate's 2024 Annual Report to Congress found that identity theft victim assistance cases took an average of nearly two years to resolve in Fiscal Year 2024, worse than the 19-month average in FY 2023, and affected nearly half a million taxpayers. National Taxpayer Advocate Erin M. Collins called these delays "unconscionable."
The best defense against tax identity theft is to file your return as early as possible, reducing the window of opportunity for a fraudster to file in your name. You should also consider requesting an Identity Protection PIN (IP PIN) from the IRS, a six-digit number that only you and the IRS know, which is required when filing your return. If you believe you've been a victim, file IRS Form 14039 (Identity Theft Affidavit) and report the theft to the FTC at identitytheft.gov.
Ghost Tax Preparers: Help That Hurts
Not every tax scam comes from a stranger. Some of the most financially damaging schemes involve fraudulent tax preparers, sometimes called "ghost" preparers, who offer to prepare your return and then disappear, often after pocketing your refund or leaving you with an inflated, fraudulent filing that draws IRS scrutiny.
Ghost preparers often promise unusually large refunds by inflating deductions, fabricating business expenses, or creating false income credits. They may request that your refund be deposited into their bank account rather than yours. After filing season ends, they vanish, leaving you responsible for any penalties, audits, and unpaid taxes their fraudulent return generated.
The IRS 2025 Dirty Dozen list identifies fraudulent tax preparers as one of the most persistent annual threats, warning that legitimate preparers are required by law to sign all returns they prepare and include their Preparer Tax Identification Number (PTIN). A preparer who refuses to sign your return is a serious red flag. To protect yourself, always verify that your preparer has a valid PTIN at irs.gov/taxpros, avoid any preparer who charges fees based on the size of your refund, and never sign a blank return.
Employee Retention Credit Fraud: A Pandemic-Era Trap
The Employee Retention Credit (ERC) was created to help small businesses retain employees during the COVID-19 pandemic. It was a lifeline for many and quickly became a magnet for fraud. Aggressive promoters flooded radio, TV, and the internet with ads urging businesses to claim the credit, often encouraging ineligible companies to file fraudulent claims for a fee.
IRS Criminal Investigation has initiated 493 investigations involving more than $5.5 billion in potentially fraudulent ERC claims, with dozens of those cases resulting in federal charges. As noted in the National Taxpayer Advocate's 2024 report, the IRS was still sitting on a backlog of approximately 1.2 million unprocessed ERC claims as of late 2024, with many pending for more than a year.
If your business received unsolicited outreach encouraging you to file an ERC claim you weren't sure you qualified for, your claim may be fraudulent. The IRS has offered voluntary disclosure programs allowing businesses to withdraw or correct improper claims without penalty. Always consult a trusted, credentialed tax professional before filing or withdrawing any ERC claim.
Social Media Tax Misinformation: Viral and Dangerous
Tax advice on social media is not just unreliable; it can be outright dangerous. Viral posts on TikTok, Instagram, and Facebook have spread false information about tax credits and deductions, encouraging ordinary taxpayers to claim credits they don't qualify for or to file returns containing fabricated information.
One prominent example is the "overstated withholding" scam, in which social media users are encouraged to manually input a fake W-2 with large fictional withholding amounts, hoping to receive a large fraudulent refund. Another viral scam promoted a fake "Self-Employment Tax Credit" that does not actually exist.
The IRS 2025 Dirty Dozen list specifically calls out bad social media advice as a major threat, warning that platforms routinely circulate inaccurate or misleading tax information. When refunds are frozen due to questionable claims, taxpayers receive no portion of their refund, even legitimate portions, until the matter is resolved. Before acting on any tax tip you see online, verify it directly with IRS.gov or a licensed tax professional.
Fake Charity Scams: Compassion Used Against You
Tax season is also peak season for fraudulent charities. Scammers set up fake nonprofit organizations, often with names very similar to well-known legitimate charities, and solicit donations from well-meaning taxpayers who want to reduce their taxable income through charitable deductions. These fake charities typically create a false sense of urgency, pressuring donors to give immediately via gift card or wire transfer, methods that are nearly impossible to reverse.
The IRS 2025 Dirty Dozen list warns that bogus charities are a perennial problem that intensifies whenever a crisis or natural disaster strikes, as scammers set up fake organizations to take advantage of the public's generosity. The agency provides the Tax Exempt Organization Search (TEOS) tool at IRS.gov, which allows anyone to verify whether an organization has legitimate tax-exempt status before donating. Before giving to any charity around tax time, also consider using a third-party watchdog like Charity Navigator or CharityWatch, and never donate via gift card, wire transfer, or cryptocurrency.
How to Protect Yourself
The scale of tax season fraud is daunting, but most scams share common warning signs and can be avoided with skepticism, vigilance, and prompt action. File your return early to close the window for fraudsters. Request an IRS Identity Protection PIN to lock your Social Security number. Never respond to unsolicited IRS emails, texts, or calls, as the IRS communicates by mail only. Verify your tax preparer's PTIN at IRS.gov and never sign a blank return. Confirm any tax advice from social media with a licensed professional or IRS.gov before acting on it. And if you encounter a scam, report it: forward phishing emails to phishing@irs.gov and file fraud reports at ReportFraud.ftc.gov.
Tax season scams are not going away. If anything, they are becoming more sophisticated, more targeted, and more costly with every passing year. Staying informed is the most important step you can take to protect your finances and your identity. The scam that fails is the one you saw coming.