Beware of Tax Season Scams

How the IRS Communicates with Taxpayers

The IRS follows specific protocols when contacting taxpayers:

• Official Correspondence: The IRS primarily contacts individuals through regular mail delivered by the United States Postal Service.
• Phone Calls: In some cases, after mailing an official notice, the IRS may call a taxpayer, especially in cases involving overdue taxes, audits, or identity verification. However, the IRS will never demand immediate payment over the phone.
• In-Person Visits: In certain situations, such as audits or investigations, IRS agents may visit a taxpayer’s home or business.

How the IRS Will Not Initiate Contact

Be aware that the IRS will never initiate communication through:

• Email: The IRS does not send unsolicited emails requesting personal or financial information.
• Text Messages: The IRS does not use text messages to discuss tax issues or request sensitive data.
• Social Media: The IRS does not contact taxpayers via social media platforms.

Examples of Phishing Scams During Tax Season

Here are some real-world phishing scams reported to the IRS and other cybersecurity experts:

• Fake Tax Refund Notices: Emails that claim you’re eligible for a refund and ask you to click a link to “verify your account” or “submit your refund request.” The link leads to a fake IRS website designed to steal your personal info.
• “You Owe the IRS” Calls or Texts: Scammers impersonate IRS agents and say you owe back taxes. They threaten legal action or arrest unless you pay immediately with a prepaid debit card, gift card, or wire transfer.
• W-2 or Payroll Scams: Fraudsters target employers or HR professionals, requesting copies of employee W-2s. This is a form of business email compromise (BEC) and has led to large-scale identity theft.
• Stimulus Payment or Advance Child Tax Credit Scams: Around tax season, scammers may send texts or emails referencing fake stimulus or child credit payments. They ask you to fill out a form with personal info to “claim” the money.
• “Update Your IRS Profile” Emails: These phishing emails instruct you to log in to your IRS account using a fraudulent link. Once you enter your credentials, scammers gain access to your data.

Common Signs of Phishing Emails and Text Messages

Phishing attempts often exhibit the following characteristics:

• Urgent or Threatening Language: Messages that create a sense of urgency or threaten arrest, license suspension, or asset seizure.
• Requests for Personal Information: Unsolicited requests for Social Security numbers, bank details, or credit card info.
• Suspicious Links or Attachments: Links that appear to direct you to the IRS but actually take you to a fake site.
• Spelling and Grammar Errors: Sloppy formatting, odd phrasing, or incorrect IRS terminology.
• Generic Greetings: Messages that begin with “Dear Taxpayer” instead of your real name.

How to Protect Yourself

To minimize the risk of falling victim to phishing scams:

• Verify Communications: Contact the IRS directly using the official phone number.
• Avoid Clicking Suspicious Links: Never click on a link in an unsolicited message.
• Use Strong Passwords & MFA: Protect your IRS online account and email with strong passwords and multi-factor authentication.
• Update Your Devices: Ensure your devices have the latest security updates and antivirus protection.
• Educate Yourself & Others: Awareness is key. Talk to family members, especially the elderly or young adults filing taxes for the first time.

Reporting Phishing Attempts

If you encounter a phishing attempt:

• Email Scams: Forward the email to phishing@irs.gov.
• Text Message Scams: Forward the text to 7726 (SPAM).
• Report to Authorities: File a complaint with the Treasury Inspector General for Tax Administration (TIGTA) and the Federal Trade Commission (FTC).