Tax Scam Season: How to Protect Yourself and What to Do If You’re Targeted

As tax season moves toward its busiest weeks, scammers become more active. Every year, thousands of taxpayers fall victim to fraud schemes designed to steal refunds, personal information, or financial data.

To help combat this growing problem, the Internal Revenue Service recently introduced a new online resource that allows taxpayers to report suspected tax scams and fraudulent activity more easily.

While this is a positive step, awareness and prevention are still the most powerful tools taxpayers have.

Understanding how tax scams work—and how to respond if something goes wrong—can help protect your identity, finances, and peace of mind.

Why Tax Scams Increase During Filing Season

Tax season creates the perfect opportunity for scammers.

Millions of taxpayers are exchanging sensitive information, filing returns, and waiting for refunds. Criminals exploit this environment by impersonating legitimate organizations such as the IRS, tax professionals, or financial institutions.

Common goals of tax scammers include:

• Filing fraudulent tax returns using stolen Social Security numbers

• Stealing refunds before the real taxpayer files

• Gaining access to personal financial information

• Pressuring victims into sending money through fake tax payments

Because tax-related information is extremely valuable, tax-related identity theft remains one of the most common financial fraud schemes each year.

The IRS’s New Fraud Reporting Resource

To make it easier for individuals to report suspicious activity, the IRS launched a dedicated fraud reporting page on its official website. https://www.irs.gov/help/report-fraud↗

This new resource helps taxpayers report several types of tax-related misconduct, including:

• Tax fraud or scam activity

• Fake IRS emails, phone calls, or messages

• Identity theft related to tax filings

• Fraudulent tax returns filed without the taxpayer’s consent

The IRS hopes this streamlined reporting process will make it easier for taxpayers to flag suspicious activity and help investigators identify fraudulent behavior faster.

Future improvements are also planned, including automated reporting systems and improved case management tools.

How to Protect Yourself From Tax Scams

Prevention is always the best defense. There are several simple security practices taxpayers can follow to reduce their risk of fraud.

1. File Your Tax Return Early

One of the most common tax fraud tactics involves criminals filing a return using someone else’s Social Security number.

If scammers submit a fake return before the real taxpayer files, they may be able to collect the refund first.

Filing early helps reduce this risk by closing the window of opportunity.

2. Use an IRS Identity Protection PIN

The IRS offers a six-digit Identity Protection PIN (IP PIN) that adds an extra layer of security to your tax account.

This PIN must be included when filing your return. Without it, fraudulent filings using your Social Security number can be rejected.

For taxpayers concerned about identity theft, this can be a powerful safeguard.

How to Get an IRS Identity Protection PIN

Taxpayers can request an IP PIN by creating or logging into their IRS Online Account. Once verified, the IRS will generate a unique six-digit PIN that must be used when filing your tax return.

To get started, visit the IRS Online Account page. ↗

Once enrolled, the IRS will generate a unique six-digit PIN each year to help protect your tax filings from identity theft.

3. Enable Multifactor Authentication

Many financial and tax software platforms now offer multifactor authentication (MFA).

This means that in addition to entering your password, you must verify your identity through a code sent to your phone or email.

Even if someone obtains your password, MFA can help prevent unauthorized access.

4. Watch for Phishing Attempts

Phishing scams are extremely common during tax season.

These scams often appear as:

• Emails claiming to be from the IRS

• Text messages requesting verification of tax information

• Fake websites designed to look like legitimate tax portals

It’s important to remember that the IRS does not initiate contact through email, text messages, or social media to request sensitive information.

Any message asking for personal data through these channels should be treated with caution.

5. Work With Secure Tax Professionals

If you work with a tax preparer or accountant, cybersecurity practices matter.

Ask questions about how your financial data is handled, such as:

• How documents are stored

• Who has access to your information

• What systems protect client data from breaches

Professional tax firms should have clear security policies to protect sensitive client information.

6. Exchange Documents Securely

Sending tax documents through standard email attachments can expose sensitive information.

Whenever possible, use:

• Secure client portals

• Encrypted file-sharing platforms

• Password-protected document transfers

This reduces the risk of financial information being intercepted.

7. Maintain Backup Copies of Tax Records

Keeping organized copies of your tax records is an important safeguard.

Consider maintaining both:

• Digital backups stored in encrypted cloud storage or external drives

• Physical copies stored in a safe or secure location

If fraud or identity theft occurs, these records can help resolve issues more quickly.

What To Do If You Encounter a Tax Scam

Even careful taxpayers can fall victim to fraud. If you believe you’ve been targeted by a tax scam, acting quickly can limit the damage.

Here are key steps experts recommend:

Stop Communicating With the Scammer

Immediately cut off contact with anyone requesting suspicious information or payments.

Do not provide additional personal or financial details.

Contact Your Financial Institutions

If any financial accounts may have been compromised, notify your bank or credit card company right away.

They can monitor suspicious activity and help protect your accounts.

Report the Incident

Suspicious activity should be reported to:

• The IRS fraud reporting page https://www.irs.gov/help/report-fraud↗

• Identity theft reporting services such as IdentityTheft.gov

• Major credit bureaus, including Equifax, Experian, and TransUnion

Reporting the incident helps authorities investigate and potentially prevent further scams.

Stay Alert for Follow-Up Scams

Unfortunately, individuals who fall victim to scams are sometimes targeted again.

Some criminals pose as “recovery services” claiming they can retrieve lost money—for a fee.

Always verify any organization offering assistance.

Understanding How the IRS Actually Communicates

Many scams work because criminals pose as the IRS.

Understanding how the IRS normally communicates can help you identify fraud.

Generally:

• IRS emails are only sent with a taxpayer’s permission

• Text messages are only sent if the taxpayer opts in

• Phone calls may occur about existing account matters

• Official messages direct taxpayers to IRS.gov for secure actions

The IRS does not:

• Request payment through gift cards

• Threaten arrest or deportation

• Demand immediate payment through social media messages

• Revoke driver’s licenses or citizenship status

If a message includes these tactics, it is almost certainly a scam.

Staying One Step Ahead of Tax Fraud

Tax scams continue to evolve each year, becoming more sophisticated and convincing.

However, by staying informed, using secure tools, and recognizing common warning signs, taxpayers can significantly reduce their risk.

Taking a few extra precautions—such as filing early, enabling account security measures, and verifying communications—can make a big difference in protecting both your financial information and your tax refund.

As tax season progresses, vigilance remains one of the most powerful defenses against fraud.