Common IRS Scams Clients Should Watch Out For (And How to Protect Yourself)

Tax season brings refunds, deadlines, and…unfortunately, scammers.

Every year, thousands of taxpayers fall victim to increasingly sophisticated IRS-related scams. These schemes are designed to steal personal information, access bank accounts, or trick individuals into paying fake “tax bills.” Even outside of tax season, scammers impersonate IRS agents and prey on fear, confusion, and urgency.

The IRS never wants filers to lose their hard-earned money to fraud — and neither do we.
Below are the most common IRS scams to watch out for and practical ways to protect yourself.

1. Fake IRS Phone Calls (“The Impersonation Scam”)

This is the classic — and still one of the most successful — IRS scams.

How It Works

A caller pretends to be from the IRS and claims:

• You owe taxes immediately

• A warrant has been issued for your arrest

• Your Social Security number will be suspended

• A lawsuit is being filed against you

The caller often uses:

• Aggressive, threatening language

• Spoofed phone numbers that appear as “IRS”

• Demands for immediate payment

The Truth

📌 The IRS will never call you and demand payment over the phone.
📌 The IRS will never threaten to arrest you.

The IRS communicates by mail first — always.

2. “Your Refund Is Ready” Text Message Scams (Smishing)

Scammers now commonly use text messages claiming:

• Your tax refund is ready

• Your refund was delayed

• You must verify personal information

These texts include a link to a fake IRS website designed to steal:

• SSNs

• Banking information

• Online IRS account credentials

The Truth

📌 The IRS does not use text messages for refunds or account notifications.

If you receive a message like this, delete it immediately.

3. Phishing Emails That Pretend to Be the IRS

Scammers frequently send emails with logos that look official and subject lines such as:

• “Urgent IRS Tax Refund Notice”

• “Update Your IRS E­-File Information”

• “Unpaid Tax Balance — Immediate Action Required”

These emails direct you to a fraudulent website that captures personal data or installs malware.

Signs the Email Is Fake

• Misspelled words or strange grammar

• Odd email address (not ending in .gov)

• Urgency or threats

• Unexpected attachments

The Truth

📌 The IRS does not initiate contact through email.

4. Fake Tax Preparers (“Ghost Preparers”)

Some scammers pose as tax professionals but:

• Don’t sign the return

• Charge fees based on refund size

• Promise inflated refunds

• Ask for deposits into their personal accounts

A legitimate tax preparer will:

• Have a valid PTIN (Preparer Tax Identification Number)

• Sign your return

• Provide a transparent pricing structure

The Danger

Ghost preparers often inflate deductions to get a bigger refund — leaving YOU responsible for penalties, audits, and interest.

5. Identity Theft Through Fraudulent Tax Returns

Scammers file a return using your:

• Social Security number

• Name

• Date of birth

…before you do, claiming a fraudulent refund.

You usually discover it when:

• Your e-file is rejected

• You receive an unexpected IRS letter

• The IRS notices duplicate filings

How to Protect Yourself

• File early

• Create an IRS online account

• Use strong passwords and multi-factor authentication

• Monitor your credit report regularly

6. Fake “Tax Resolution” or “Settlement” Companies

These companies advertise:

• “Settle your tax debt for pennies!”

• “Guaranteed IRS forgiveness!”

• “We can erase tax problems instantly!”

While legitimate tax resolution services exist, scammers exploit fear to charge enormous upfront fees without truly resolving the issue.

Warning Signs

• Claims of guaranteed outcomes

• High-pressure sales tactics

• Requests for immediate, large payments

• No credentialed professionals (CPA, EA, or attorney)

7. Social Security Number Suspension Scam

Scammers claim the IRS will:

• Suspend your Social Security number

• Freeze your bank accounts

• Disable your identity

This scam uses fear to get quick payment.

The Truth

📌 The IRS cannot suspend your Social Security number.

Anyone who makes this claim is a scammer.

How to Protect Yourself From IRS Scams

Here are the simplest and most effective ways to stay safe:

1. Know How the IRS Really Contacts You

The IRS will always send a written letter first.
They do not:

• Call demanding immediate payment

• Email you first

• Text refund links

• Ask for gift cards or wire transfers

2. Guard Your Personal Information

• Never click unknown links

• Don’t send SSNs or bank info via email

• Use secure portals to share tax documents

3. Verify Before Responding

If you receive a suspicious message, call the real IRS at 1-800-829-1040 or contact your tax professional.

4. Report Scams

Forward suspicious emails to: phishing@irs.gov
Report fake IRS calls to: TIGTA.gov

Final Thoughts

Scammers continue to get more creative each year, but the best defense is awareness. By knowing how the IRS truly operates — and recognizing the red flags — you can protect yourself from fraud, identity theft, and financial loss.

If you ever receive a message that claims to be from the IRS and something feels “off,” reach out.
We’re always here to review, verify, and help keep your financial information secure.