Scammers love tax season. Between increasingly frequent phone scams and constantly evolving online scams, bad actors are everywhere. According to the IRS, they saw $4.49 billion in tax fraud in 2025, and that’s just what people reported. With the help of AI, cybercriminals are constantly creating realistic phishing emails, deepfake phone calls, and fax tax prep websites. Here are some of the most common scams and how to avoid them.
- 1. Stolen Identity Scam: This is the most common form of tax fraud. A scammer steals your identity, files a tax return on your behalf, and gets your refund. The best way to avoid this scam is to protect your identity and passwords. Beyond that, filing early can cut off this opportunity.
- 2. IRS Impersonation Scam: In this scam, fraudsters pose as IRS representatives, demanding immediate payment and threatening law enforcement action or suspension of benefits if payment isn’t made. The reality is, government agencies like the IRS will never call you to demand urgent action or threaten you. In most cases, they communicate by mail. To verify if a piece of mail is from the IRS, just head to the IRS Notices & Letters Search function to check if yours is legit. If you receive a call from someone claiming to be the IRS, a government agency or law enforcement, hang up. Look up the official number for that agency and call them back directly. Never rely on a number provided by the caller.
- 3. Tax Preparer Scam: In this scam, fraudsters pose as representatives of tax service companies, offering to help you prepare to file taxes. In reality, they’re only trying to gain access to your personal information, which will give them what they need to scam you out of money. You can avoid this scam by researching and vetting legitimate tax preparers. If you want to be even safer, seek referrals from friends and family to ensure you're picking a trusted service. Always look up your provider before paying for services or providing them with personal information to avoid ‘ghost preparers.”
- 4. Social Media Tax Hacks Scam: Social media platforms like TikTok and Instagram offer hacks for everything, but when it comes to your taxes, you want to be honest. Avoid advice spouted by influencers who might offer a corner-cutting hack or strategy for a smaller tax payment. Tax hacks circulating on platforms like TikTok, Instagram and Facebook often promote fabricated strategies to inflate refunds, such as inventing household employees or submitting false W-2 information. The IRS has warned that these schemes can lead to rejected returns, penalties and increased audit scrutiny.
- 5. W-2 Request Scam: You may receive an email that appears to come from HR, a payroll provider, or even the IRS, asking you to upload or confirm your W-2. The link will then direct you to a look-alike portal built to capture your Social Security number and other personal data. To say safe, never click directly from an email like this. Instead, go straight to your employer’s official payroll portal. If something feels off, confirm the request with HR using a separate email or a phone call.
