Every year, millions of Americans gather their documents, file their returns, and wait for their refunds. However, another group is preparing as well: scammers. These fraudsters take advantage of tax season to deceive unsuspecting individuals and businesses. Their methods range from impersonating the IRS to luring victims with promises of massive refunds. In this blog, we will discuss the common tax scams you need to know about.

The Top Tax Scams Targeting Taxpayers in 2025

Tax fraud comes in many forms, but certain scams recur year after year. Below are the most widespread schemes currently circulating:

1. Fake Charities Exploiting Crises

After disasters, whether natural events or humanitarian emergencies, scammers often pose as charitable organizations. Their goal? To ask for donations and steal your personal or banking information. Before giving, always verify the organization’s status on sites like the IRS’s tax-exempt organization list.

2. Pandemic-Inspired Frauds

Even after the height of COVID-19, criminals continue to exploit pandemic-related relief programs. Fraudsters may file claims under your name for unemployment or stimulus checks. Others might pose as government agencies asking for your Social Security number to verify eligibility.

3. Refund & Credit Lies

Scammers often promise enormous refunds through obscure or misused credits like the Fuel Tax Credit or Employee Retention Credit (ERC), even if you don't qualify. Falling for this may not only result in fines or audits but also potential criminal charges.

4. Disaster-Related Tax Fraud

In the wake of hurricanes, wildfires, or other natural disasters, some scammers pretend to be tax experts helping victims claim losses. Their real aim is to steal your identity or file fraudulent claims in your name.

5. Shady Tax Preparers

Not all tax professionals are trustworthy. Be cautious of preparers who:

• Don’t sign your return
• Request payment in cash only
• Promise unusually large refunds
• Deposit your refund into their own account

Always choose a preparer with a valid Preparer Tax Identification Number (PTIN), and verify their credentials through IRS.gov.

6. Email & Text-Based Phishing

One of the most common forms of fraud, phishing scams involve emails or texts that appear to be from the IRS. They may ask for login credentials or bank details. Important: The IRS does not contact taxpayers via email, text, or social media for sensitive information.

7. Elder Fraud

Senior citizens are prime targets due to trust, lack of digital literacy, or confusion about tax processes. Scammers often manipulate older adults into revealing bank information or sending money for fabricated tax liabilities.

8. Viral Misinformation on Social Media

In the age of TikTok and Twitter, self-proclaimed tax experts may promote false strategies, like claiming dependents you don’t have or exploiting credits illegally. While the advice may sound convincing, it’s often inaccurate and potentially illegal.

9. Tax Debt Relief Scams

Be cautious if someone claims they can “settle your IRS debt for pennies” but demands a hefty fee upfront. Legitimate options like Offers in Compromise are available through the IRS, but they don’t require a middleman.

10. Fake Unclaimed Refunds

You may receive a letter or email claiming you're owed an unclaimed refund. All you need to do, it says, is submit your banking details. Don’t fall for it. The IRS never initiates refunds through email or asks for bank information in this way. You can always verify your refund status at IRS.gov/refunds.

11. Unemployment Fraud & Identity Theft

If you receive a 1099-G form for unemployment benefits you never applied for, your identity may have been used fraudulently. Report this immediately to your state’s unemployment office and notify the IRS.

12. IRS Impersonation Phone Calls

These aggressive calls demand immediate payment and threaten arrest or legal action. They may instruct you to pay via wire transfer or gift cards. The IRS never uses such methods. Legitimate communications always come by mail.

13. W-2 Data Theft Scams

In this scheme, fraudsters pose as company executives or HR reps requesting employee W-2s. Once obtained, they use the data to file fake returns. Always verify such requests internally before sharing any sensitive employee information.

How to Stay Protected from Tax Scams

You don’t need to be a tax expert to avoid becoming a victim. These best practices can significantly reduce your risk:

1. Use Certified Tax Professionals

Hire only trusted professionals. Ask for their PTIN and confirm they have experience with your type of return. Avoid those who base their fee on a percentage of your refund.

2. Guard Your Private Information

Never send personal details like your Social Security number, date of birth, or bank information over email, text, or social media. If you receive a suspicious message, forward it to phishing@irs.gov.

3. Confirm All IRS Communications

If you get a letter or call from someone claiming to be from the IRS:

• 1. Do not respond immediately.
• 2. Go to IRS.gov and use official contact methods to verify the communication.
• 3. Remember: Caller ID and email addresses can be spoofed.
• 4. Know Your Taxpayer Rights

Every taxpayer has a set of protections under the Taxpayer Bill of Rights:

• Right to be informed
• Right to privacy
• Right to challenge the IRS’s position and be heard

Don’t let scammers intimidate you. Knowing your rights gives you the power to push back against fraud.

5. Think Before Clicking Links

If an email or post seems suspicious, especially if it promotes a “secret tax loophole”, don’t click. Hover over links to see their actual URLs. Always go directly to government websites by typing the address yourself.

6. Help Others Stay Safe

Educate family, friends, and coworkers, especially seniors and first-time filers. A single conversation could protect someone from losing thousands of dollars or worse.

How TaxProNext Keeps You Secure

• End-to-End Secure Filing: Advanced encryption ensures your data is protected at every step.
• Accuracy You Can Trust: We verify every credit and deduction to keep your return clean and penalty-free.
• Deadline Management: Our system tracks IRS dates to avoid late filings and last-minute scrambles.
• Expert Insights: Our professionals monitor fraud alerts and IRS updates to keep your filings secure.
• Client Education: We arm you with knowledge, not just forms, so you know what to expect and avoid.
• 24/7 Support: Questions or concerns? Our support team is here to help you year-round.