Tax season can already feel stressful. Between gathering documents, meeting deadlines, and worrying about finances, many people experience increased anxiety this time of year. Unfortunately, tax season is also prime time for scams—and the shift to digital tax filing has created new opportunities for fraud.
According to the IRS, about 93% of individual tax returns are now filed electronically. Refunds are increasingly issued through electronic deposits instead of paper checks, and the IRS continues expanding online services such as Direct Pay, which allows taxpayers to make payments directly from their bank accounts. While these changes make the process faster and more convenient, they also open the door for scammers who attempt to steal personal information or intercept refunds. In fact, the IRS flagged approximately 2.1 million tax returns for potential identity issues in 2025.
Here are several common tax scams to be aware of this season.
Email and Text Refund Scams
One of the most common scams involves text messages or emails claiming to be from the IRS or a state tax office. These messages often say that your tax refund has been approved or processed and include a link to “claim” the refund. The link typically leads to a fake website that asks for sensitive personal information such as:
• Social Security numbers
• Bank account details
• Personal identification information
This is known as a phishing scam. The goal is to steal your refund or commit identity theft.
It’s important to remember that the IRS does not contact taxpayers by email, text message, or social media to request personal information. If you want to check the status of a refund, the safest option is to go directly to the official IRS website.
Fake Help Setting Up an IRS Account
The IRS encourages taxpayers to create online accounts where they can view payment history, balances, and tax records. However, scammers have started targeting people by offering to “help” them set up these accounts.
These fraudulent messages often claim that the setup process is complicated and that professional assistance is required. In reality, the scammers are simply trying to collect personal details such as:
• Social Security numbers
• Home addresses
• Driver’s license or photo ID information
Setting up an IRS account is straightforward and can be done directly through the official IRS website. If assistance is needed, the IRS provides free guidance and FAQs online.
Phone Calls About Back Taxes
Some scams still rely on traditional phone calls. In these situations, callers may claim to represent organizations with official-sounding names such as “Tax Resolution Oversight Department” or “Tax Mediation and Resolution Agency.”
The caller typically claims that you owe back taxes and offers to connect you with someone who can resolve the issue immediately. Victims may be pressured to:
• Provide personal information
• Pay upfront fees for fake tax relief services
In reality, the IRS does not initiate contact with taxpayers by phone. Official communication always begins through postal mail. If you receive a threatening or unexpected call about taxes, the safest response is simply to hang up.
Protecting Yourself from Tax Fraud
There are several simple steps that can help protect both your identity and your finances during tax season.
Consider an Identity Protection PIN
The IRS offers a free Identity Protection PIN (IP PIN). This six-digit number helps verify your identity when filing taxes and prevents someone else from submitting a tax return in your name.
The PIN is generated through your IRS online account and changes each year. It should only be used when filing your tax return or shared with a trusted tax professional. The IRS will never contact you asking for your PIN.
File Your Taxes Early
If scammers obtain your Social Security number through a data breach or fraud attempt, they may try to file a fake tax return before you do. Filing early reduces this risk.
Understand How the IRS Communicates
Knowing the IRS’s standard procedures can help you quickly identify a scam:
• The IRS initiates contact through postal mail.
• The agency does not demand immediate payment through gift cards, payment apps, or cryptocurrency.
• The IRS does not use threatening or high-pressure tactics.
Financial fraud can create significant emotional distress. Victims often experience anxiety, embarrassment, and feelings of violation after identity theft or scams. For many individuals already managing financial pressure, tax-related fraud can intensify stress and uncertainty. Staying informed about common scams is one small but important step toward protecting both financial and emotional well-being.