Common IRS-Related Scams in 2025 and How Taxpayers Can Protect Themselves
Tax season (and even off-season) is prime time for scammers who prey on taxpayers. Fraudsters often impersonate the IRS (or tax professionals) to trick people into handing over sensitive personal data or money. Over the years, the IRS has repeatedly warned that impersonation scams are among the most common threats.
In this post, you’ll learn:
- The most common IRS/ tax-related scams
- Warning signs and red flags
- How to confirm whether a communication is really from the IRS
- Steps to take if you think you’ve been targeted
- Best practices to protect yourself and your family
Let’s dive in.
(Note: This blog is for informational purposes. Always consult a qualified tax professional if you’re unsure.)
The Rise of IRS Scams Targeting Taxpayers
Scammers are continually evolving their tactics. In recent years, the IRS has reported:
- A surge in text-based (smishing) scams impersonating the IRS, directing victims to malicious links. IRS
- Wide circulation of misleading tax advice (especially via social media) that lures people into improper filings. IRS+2IRS+2
- Growing use of AI and identity theft to file fraudulent returns in someone else’s name.
- New scams around programs like the “Fresh Start” offers that promise tax relief or debt forgiveness—often fake.
- The IRS’s annual Dirty Dozen list, which highlights the most prevalent tax scams each year, remains a key reference for warning trends. IRS+2IRS+2
Because the stakes are high, losing money, having your identity stolen, or getting into tax trouble, vigilance is essential.
Common IRS & Taxpayer Scams You Should Know
Here are some of the frequent scams targeting taxpayers. Many appear every year and evolve over time.
| Scam Type | Description & Modus Operandi | Why It’s Dangerous |
| IRS Impersonation / Phone Scams | Scammers call, threatening arrest, deportation, or legal action if you don’t pay immediately (often via gift cards, wire, or cryptocurrency) | Creates panic, leads victims to pay quickly without verifying the call. |
| Email Phishing / Spoofed Communications | Fraudulent emails or web pages that pretend to be from IRS, asking you to click links or provide credentials or SSN | Can lead to credential theft, identity theft, malware infection. |
| Smishing (Text Message) Scams | Texts that claim issues with your IRS account, refund, or taxes and include a link to “verify” your information | Mobile users are particularly vulnerable. |
| Mail / Delivery Notice Scams | Letters packaged in official-looking envelopes claiming you have a refund, “unclaimed refund,” or issue with your taxes | These try to trick you into calling a fake number or giving data. |
| Bad Tax Advice / Social Media Schemes | Viral posts promising “hack” refunds, exaggerated credits, or tips that ignore eligibility rules | Following them may lead to tax errors, audits, or penalties. |
| Identity Theft / Fraudulent Return Filing | Criminals file tax returns in someone else’s name to claim fraudulent refunds | The real taxpayer may learn too late and face long delays or worse. |
| Abusive Tax-Relief / “Fresh Start” Offers | Scammers promise to eliminate tax debt or freeze IRS enforcement for a fee | It’s often a ruse to collect money (or info) without delivering real relief. |
| 1099-OID Fraud | Scam promoters misuse Form 1099-OID by inflating withholding amounts or claiming secret accounts | It can lead to fraudulent refund claims and IRS scrutiny. |
The IRS calls attention to many of these in its Dirty Dozen list of tax scams.
Warning Signs & Red Flags
Recognizing a scam early can save you from major trouble. Here are common red flags:
- Urgent threats or demand to pay now (warrants, arrest, deportation).
- Payment requests via gift cards, prepaid debit cards, cryptocurrency, or wire transfer, the IRS never demands payment like this.
- Unsolicited contact via email, text, or social media — the IRS does not initiate contact this way.
- Generic greetings, grammar or spelling mistakes, or odd URLs in messages
- Requests for personal or financial information (SSN, bank info, PINs, login credentials)
- Offers that seem “too good to be true” (huge refunds, debt elimination, etc.)
- Pressure to act quickly or intimidation tactics
One helpful IRS resource is “Ways to tell if the IRS is reaching out or if it’s a scammer,” which lists how and when the real IRS contacts taxpayers. IRS
How the IRS (Truly) Contacts Taxpayers
To distinguish real communications from scams, know the official IRS protocols:
- First contact is usually via US mail (a letter/notice) — rarely by phone, text, or email.
- IRS does not initiate contact electronically to request personal information like SSN or bank details.
- Legitimate phone contact happens only after prior written notice in many situations.
- Private collection agencies may call to collect certain outstanding inactive tax liabilities, but only after proper notice, and they never demand gift cards.
- The IRS never requires payment via gift cards, Bitcoin/cryptocurrency, or prepaid cards.
If you ever doubt a communication’s legitimacy, log into your official IRS online account or call the IRS directly using a known phone number (not the one provided in the suspicious message). Individuals call 800-829-1040, Businesses call 800-829-4933.
What To Do If You’re Targeted
If you suspect you’ve been contacted by a scammer, take the following steps:
- Stop engaging immediately, don’t reply, click links, or provide info.
- Report the incident
- Contact financial institutions if you’ve already shared bank or card info, and consider freezing your credit.
- Monitor your IRS account and tax transcripts for suspicious activity.
- If fraudulent returns were filed in your name, file Form 14039 (Identity Theft Affidavit). IRS
- Seek help from a professional — a tax advisor or attorney may guide you through recovery.
The IRS emphasizes that reporting these scams helps protect others from becoming victims.
Proactive Measures & Best Practices
Here are key steps you and your family can take to reduce risk:
- Always use strong, unique passwords for financial and IRS accounts.
- Enable multi-factor authentication (MFA) wherever available.
- File your tax return early, this reduces the window for criminals to file a fraudulent return.
- Use direct deposit for refunds. The IRS as of 09/30/2025 will no longer issue paper checks, see our earlier blog regarding this change.
- Be cautious of tax advice on social media, forums, or from non-credentialed individuals.
- Review the IRS Dirty Dozen list each year to stay abreast of emerging scams.
- Educate elderly family members or less tech-savvy individuals, they are often prime targets.
- Secure your personal info, limit the data you post publicly (on social media, directories, etc.).
- Consider using Identity Protection PINs offered by the IRS for eligible taxpayers to add another layer of protection.
