By Voung H.
Voung oversees BSA/AML, fraud prevention, and sanctions compliance and is responsible for building data-driven controls and partners across the FIGFCU to safeguard the credit union, its Members, and stop emerging threats.
SUMMARY
- The IRS does not demand immediate payment by phone, text, email, gift card, or cryptocurrency.
- Hang up on unexpected calls claiming you owe back taxes.
- Do not click links in unsolicited tax refund emails or text messages.
- Protect your Social Security number to prevent tax identity theft.
- Report IRS impersonation and phishing scams immediately.
Tax season is prime time for scammers. Every year, criminals try to trick taxpayers into revealing personal information or sending money through IRS impersonation calls, phishing emails, fake text messages, and fraudulent tax preparers.
In 2026, these scams continue to evolve but knowing what to watch for can help you protect your identity, your tax refund, and your financial accounts.
Keep reading to learn common tax season scams and how to avoid them.
IRS phone scams: “You owe back taxes.”
One of the most common tax scams involves unexpected phone calls from someone claiming to represent the IRS. The caller may insist you owe back taxes and threaten arrest, lawsuits, license suspension, or other penalties unless you pay immediately.
According to the Federal Trade Commission (FTC), reports of phone scams involving fake tax debt continue to rise. Scammers often pose as agencies with official-sounding names like:
- “Tax Resolution Oversight Department”
- “Tax Mediation and Resolution Agency”
If you receive a call like this, it’s a red flag. Hang up immediately.
Warning signs of an IRS impersonation scam:
- Demands for immediate payment
- Requests for gift cards, wire transfers, cryptocurrency, or payment apps
- Threats of arrest or law enforcement action
- Pressure to stay on the phone
In most cases, the IRS contacts taxpayers first by official mail, not aggressive phone calls demanding instant payment.
What to do:
- If you receive an unexpected call claiming to be from the IRS, end the call and verify the request directly through official IRS channels.
- Do not share your Social Security number or banking information.
- Visit IRS.gov directly if you want to verify your tax account status.
Watch out for phishing emails and smishing text messages.
Scammers also target taxpayers through fraudulent emails and text messages known as phishing and smishing.
These messages often appear legitimate and may claim:
- There’s a problem with your tax refund
- Your return was rejected
- You qualify for a special tax rebate
- You must “verify” personal information
These messages typically include links to fake IRS websites designed to steal login credentials, Social Security numbers, and financial information.
To stay safe:
- Do not click suspicious links
- Do not download unexpected attachments
- Type official website addresses directly into your browser
Phishing and smishing scams remain among the fastest-growing forms of tax fraud in 2026.
Be on the lookout for tax identity theft and refund fraud.
Tax identity theft occurs when someone uses your Social Security number to file a fraudulent tax return and claim your refund.
What you can do to reduce your risk:
- Use strong, unique passwords for tax software and financial accounts
- Enable multi-factor authentication (MFA)
- Store tax documents securely
- Shred old financial paperwork before discarding it
You can also request an IRS Identity Protection PIN (IP PIN) for additional protection against refund fraud.
Be aware of fake tax preparers and “ghost” preparers.
Not all tax scams happen online or over the phone. Some fraudsters pose as professional tax preparers and promise unusually large refunds to attract clients.
These scammers may charge fees based on the size of your refund and refuse to sign the tax return, leaving you legally responsible for errors.
Before hiring a tax professional:
- Confirm they have a valid Preparer Tax Identification Number (PTIN)
- Check their credentials and experience
- Carefully review your completed tax return before filing
- Never sign a blank tax return
Never sign a blank tax return.
How to report tax scams.
If you encounter a tax scam in 2026:
- Forward phishing emails to phishing@irs.gov
- Report IRS impersonation scams at ReportFraud.ftc.gov
- Monitor your credit reports for suspicious activity. Consider placing a fraud alert or credit freeze with the major credit bureaus if your identity may have been compromised
- Notify your financial institution if you identify any suspicious activity on your account
Act quickly if you believe your identity has been compromised.
Final thoughts.
Tax season should be about filing accurately and receiving your refund, not dealing with fraud.
By recognizing IRS phone scams, phishing emails, tax identity theft tactics, and fraudulent tax preparers, you can better protect your personal information and financial accounts.
If something feels suspicious, slow down, verify through official channels, and never share sensitive financial information under pressure.
This article is provided for educational purposes only and is not intended as financial or legal advice. Members should contact the Credit Union for guidance regarding their individual situation. Please consult a tax professional for the most current data and personal advice for your situation.
