It’s officially tax season which means it’s also tax scam season. In 2025, reported tax scams increased 62% year-over-year and accounted for more than $5.7 million in losses – with the average loss per victim reaching $32,080.

Be aware of these common IRS Tax Scams:

  • Impersonation Scams: Scammers call or email, pretending to be from the IRS and demanding immediate payment via wire transfer, gift cards, or crypto.

  • Identity Theft/Refund Fraud: Criminals use stolen personal data such as Social Security numbers  to file false returns and redirect refunds to their own accounts.

  • Fake Tax Credits/Refunds: Fraudulent claims regarding the Employee Retention Credit (ERC), clean energy credits, or fake tax refunds.

  • Phishing and Smishing: Fraudulent emails or texts disguised as the IRS, directing users to fake websites to steal login credentials or financial information.

  • Ghost Tax Preparers: Unscrupulous preparers who don't sign tax returns they prepare or charge fees based on a percentage of the refund.

  • "Offer in Compromise" Mills: Scammers promise to settle tax debts for pennies on the dollar, charging large, upfront fees for services that taxpayers can do themselves. 

Look for These Red Flags

  • Threats of Arrest: The IRS will never threaten to send police or arrest you for not paying immediately.

  • Demanding Specific Payment Types: The IRS will never request payment via prepaid debit cards, gift cards, or wire transfers.

  • Initial Contact via social media, text or email: The IRS initiates contact through the mail only.

  • Unexpected Refund/Error Messages: Claims that the IRS found an error and you are owed money, requiring you to click a link to "verify" your account. 

Protect Yourself and Your Money

  • File Early: Filing early reduces the opportunity for identity thieves to file a fake return in your name.

  • Use Trusted Tax Professionals: Verify the credentials of tax preparers; the IRS has a directory of federal tax return preparers.

  • Do Not Click Links: Avoid clicking links in unexpected emails or texts that claim to be from the IRS.


If you believe that you have been the target of a tax scam, contact the Internal Revenue Service (IRS and the Federal Trade Commission (FTC).

Have questions? Contact one of our branches and we’ll be happy to assist you.



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