Introduction

Tax season is upon us, and unfortunately, so are the scammers. Every year, criminals use increasingly sophisticated tactics to steal personal and financial information. This year, scammers are using new technologies, including artificial intelligence, to make their frauds even more convincing. They impersonate IRS agents, create realistic fake websites, and send phishing emails with official-looking branding. Even tech-savvy individuals can fall for these scams, so being informed is your best defense. Don’t let bad actors make off with your refund.

Common Tax Scams to Watch For

Scammers and bad actors are always looking for ways to take advantage of honest taxpayers, from tried-and-true methods from tax seasons past to new schemes made possible with increasingly sophisticated technologies. Here are some of the more common ones you should be aware of.

Phishing Emails & Texts

Be wary of emails or text messages claiming to be from the IRS that prompt you to click on links or provide personal information. The IRS never initiates contact this way. These messages may claim you need to "update your IRS e-file" or verify a tax refund. Some emails even include fake tax return forms designed to trick you into revealing sensitive information.

Phone Scams

Scammers posing as IRS agents may call, demanding immediate payment under threat of arrest or legal action. They often insist on payments via gift cards, wire transfers, or cryptocurrency—methods that are difficult to trace. Remember: the IRS never demands payment over the phone. Some calls use AI-generated voices to sound more authentic, mimicking real IRS representatives.

Identity Theft & Fake Tax Returns

Some scammers steal Social Security numbers to file fraudulent returns and claim refunds. Victims often discover fraud when their legitimate return is rejected. Filing your taxes early can help prevent this. Additionally, be cautious of receiving tax documents from employers you’ve never worked for—this could indicate someone is using your identity for fraud.

Dishonest Tax Preparers

Beware of preparers promising huge refunds or asking you to sign blank returns. Some may alter your return without your knowledge. Always ensure your preparer includes their Preparer Tax Identification Number (PTIN) on your return. The IRS is sending out warning letters about “ghost preparers” who fail to sign returns, a red flag for fraudulent activity.

Social Media Misinformation

Fraudsters use platforms like Facebook and X to spread false information about "hidden" tax credits or unclaimed refunds to steal personal data. Be skeptical of any posts that claim the IRS is withholding money from taxpayers or that a special loophole will increase your refund overnight.

Fake IRS Mailings

Some scams involve fraudulent letters claiming you are owed a refund and requesting sensitive information. The IRS will never ask for personal or banking details via email or unsolicited mail. A newer scam involves sending fake refund claim forms in official-looking envelopes to trick recipients into disclosing personal details.

Charity Fraud

Scammers exploit tax season by pretending to represent charitable organizations, especially after disasters. Verify charities through the IRS Tax Exempt Organization Search before donating. Never provide financial details over the phone unless you have independently verified the charity.

Offer in Compromise (OIC) Scams

Promoters claim they can settle your tax debt for pennies on the dollar—for a hefty fee. However, the IRS offers legitimate OIC programs directly to taxpayers. Many taxpayers have been misled into paying thousands for services they didn’t need, only to find out they could apply directly through the IRS.

Artificial Intelligence & Tax Scams

AI-generated emails, calls, and even videos are becoming harder to distinguish from legitimate communications. Scammers use AI to create fake IRS emails, clone voices, and even fabricate deepfake videos to manipulate taxpayers. Scammers might also use AI to mimic a relative’s voice, calling to request emergency funds under the guise of a tax issue.

Protect Your Business: Best Practices

In the era of AI, which makes it even harder to discern fraud, there are a number of steps that you can take to protect your business. These include:

• Verify: Verify all IRS communications by contacting the IRS directly via their official website (www.irs.gov) or phone number. If you receive a suspicious message, avoid clicking any links or downloading attachments.
• Don’t Click Links: Never click on links in unsolicited emails or texts. Fake IRS emails have become more sophisticated, often using real logos and official-sounding language.
• Guard Information: Do not provide personal or financial details unless you are certain of the recipient's identity.
• Shred Documents: Shred sensitive documents to prevent identity theft.
• File Early: File your taxes early to minimize the risk of fraudulent filings in your name.
• Consult Experts: Consult with a trusted tax professional before responding to any unexpected tax-related messages or calls.

Report Suspicious Activity

If you receive a suspicious tax-related communications, report it immediately:

• Forward phishing emails to: [email protected]
• Report phone scams to the Treasury: at www.tigta.gov
• Mail suspected fraudulent tax preparer activity to:
  IRS Lead Development Center MS7900
  1973 N. Rulon White Blvd.
  Ogden, UT 84404

Additionally, if you believe your Social Security number may have been compromised, contact the IRS Identity Protection Specialized Unit to take protective measures.

Final Reminder

As scammers become increasingly sophisticated, tax season presents heightened risks for fraud for women entrepreneurs. Staying alert and informed is your best defense. If you ever feel uncertain about a tax-related message, contact us before taking action. We are here to help ensure your security and guide you through a safe tax season. Taking preventive measures now can help you avoid financial and emotional stress later.

Your safety and financial well-being are our top priorities. Ready to ensure a safe tax season? Schedule a free consultation with us today to protect your business and navigate tax season with confidence.