In 2025, IRS-related scams have become increasingly sophisticated, posing significant threats to taxpayers. Fraudsters continually adapt their tactics – and take advantage of AI tools – making it crucial to stay informed about prevalent schemes and protective measures.
Common IRS Scams in 2025
- Phishing Emails and Texts: Scammers send fraudulent messages impersonating the IRS, urging recipients to click on malicious links or provide personal information. These communications often claim issues with tax returns or offer unexpected refunds. Remember, the IRS does not initiate contact via email or text.
- Phone Scams: Impersonators call taxpayers, threatening legal action or arrest unless immediate payment is made. They sometimes demand payment through unconventional methods like gift cards or wire transfers. The IRS will never demand immediate payment over the phone or threaten taxpayers with law enforcement action.
- Fake Tax Preparers (“Ghost Preparers”): Unqualified individuals pose as tax professionals, preparing returns for a fee but refusing to sign them, leaving taxpayers responsible for errors or fraud. Always ensure your tax preparer has a valid Preparer Tax Identification Number (PTIN) and is willing to sign your return.
- Identity Theft: Criminals use stolen personal information to file fraudulent tax returns and claim refunds. Filing your taxes early can help prevent scammers from submitting returns in your name.
- Social Media Scams: Fraudsters exploit social media platforms to spread misinformation about tax credits or refunds, luring individuals into sharing personal data. Always verify tax-related information through official IRS sources.
Who Is Most Likely to Fall for These Scams?
While anyone can be targeted, certain groups are more vulnerable to IRS scams:
- Elderly Taxpayers: Seniors are often targeted because they may not be as familiar with digital threats and are more likely to trust official-sounding phone calls or emails.
- New Taxpayers: Young adults filing taxes for the first time may be unaware of IRS procedures and more susceptible to scams that appear legitimate.
- Small Business Owners: Business owners juggling multiple financial responsibilities may inadvertently and distractedly click on a link created by fraudulent tax preparers or claiming to be fake IRS notices demanding immediate payment.
- Non-English Speakers: Scammers often target individuals with limited English proficiency, using fear tactics and impersonating IRS agents to demand payment.
- High-Income Earners: Those with higher incomes may be targeted with investment-related scams or fraudulent tax shelters promising significant deductions.
Protective Measures
To protect yourself from IRS scams, follow these key steps to safeguard your personal and financial information while ensuring your tax matters are handled securely.
- Verify Communications: The IRS initiates contact primarily through mail. Be cautious of unsolicited emails, texts, or calls claiming to be from the IRS.
- Use Reputable Tax Professionals: Ensure your tax preparer has proper credentials and a valid PTIN. Do not use any resource that promise large refunds or base their fees on a percentage of your refund.
- Safeguard Personal Information: Shred sensitive documents, use strong passwords, and monitor your financial accounts regularly for unauthorized activity.
- Report Suspicious Activity: Report any scam calls and forward phishing emails to [email protected].
Staying informed and cautious is essential to protect yourself from tax-related scams. For more detailed information, visit the official IRS website page to report a tax scam or fraud.