As tax season approaches, scammers are ramping up their efforts to steal personal information and tax refunds through identity theft and fraudulent schemes. Taxpayers must remain vigilant to avoid falling victim to these crimes.

Understanding how tax identity theft works and recognizing common scams can help you protect your financial information and prevent fraud.

What Is Tax Identity Theft?

Tax identity theft occurs when a fraudster uses your Social Security number (SSN) to file a false tax return and claim a refund in your name. Victims often discover the fraud when they attempt to file their legitimate return and receive a notice from the IRS stating that a return has already been submitted.

According to the Federal Trade Commission (FTC), tax identity theft remains one of the most common forms of identity fraud, with thousands of cases reported each year. Criminals often obtain stolen personal information through data breaches, phishing emails, and social engineering tactics.

Common Tax Scams to Watch Out For

Scammers use various tactics to steal sensitive data or trick taxpayers into making payments. Here are some of the most prevalent tax scams:

1. IRS Impersonation Scams

• Fraudsters pose as IRS agents and contact victims via phone, email, or text.
• They threaten legal action, arrest, or deportation if payment is not made immediately.
• The IRS never initiates contact by phone or email—they send official letters through U.S. mail.

2. Phishing Emails and Fake Websites

• Scammers send emails claiming to be from the IRS or a tax preparation service.
• These emails contain malicious links that direct users to fake websites designed to steal login credentials and SSNs.
• Always verify URLs and never click on suspicious links. The official IRS website is IRS.gov.

3. Fake Tax Preparers and Refund Fraud

• Some criminals pose as legitimate tax professionals to steal personal information.
• Others inflate deductions or claim false credits to increase refunds while charging high fees.
• Only work with trusted, certified tax professionals and verify their credentials through the IRS Directory of Tax Preparers.

4. Social Security and Unemployment Fraud

• Scammers may use stolen SSNs to claim unemployment benefits or Social Security payments.
• If you receive a notice about benefits you did not apply for, report the fraud immediately.

5. Taxpayer Advocate Service (TAS) Scams

• Fraudsters pretend to be from the Taxpayer Advocate Service and claim they can help resolve IRS issues.
• They request personal information and payments—which the real TAS would never do.

How to Protect Yourself from Tax Identity Theft

Taking proactive steps can minimize the risk of falling victim to tax fraud.

1. File Your Taxes Early

• Filing early reduces the chance of a scammer using your SSN to submit a fraudulent return.
• If a fake return is filed before yours, you may face delays in receiving your refund.

2. Use Strong Passwords and Multi-Factor Authentication

• Secure your IRS and tax preparation accounts with unique, complex passwords.
• Enable multi-factor authentication (MFA) for added security.

3. Be Wary of Unsolicited Calls and Emails

• The IRS will never call, text, or email to demand immediate payment.
• Do not provide personal or financial information over the phone.
• If you receive a suspicious IRS-related message, report it to [email protected].

4. Protect Your Social Security Number

• Never carry your Social Security card in your wallet.
• Only share your SSN when absolutely necessary.
• Regularly monitor your credit reports for unauthorized activity.

5. Use IRS Identity Protection PIN (IP PIN)

• An IP PIN adds an extra layer of security by requiring a unique 6-digit number to file your return.
• Taxpayers can obtain an IP PIN through the IRS website to prevent fraudulent filings.

What to Do If You Become a Victim of Tax Identity Theft

If you suspect that someone has fraudulently filed a tax return in your name, take these steps immediately:

1. Contact the IRS

• Call the IRS Identity Theft Hotline at 1-800-908-4490.
• Complete IRS Form 14039 (Identity Theft Affidavit) to report the fraud.

2. Check Your IRS Account

• Log into your IRS account at IRS.gov to view tax transcripts and see if an unauthorized return was filed.

3. Place a Fraud Alert on Your Credit Report

• Contact one of the three major credit bureaus to place a fraud alert or credit freeze on your account:
  • Experian: 1-888-397-3742
  • Equifax: 1-800-525-6285
  • TransUnion: 1-800-680-7289

4. Report the Scam to the FTC

• File a report at IdentityTheft.gov, the FTC’s official identity theft recovery site.

5. Monitor Your Financial Accounts

• Review your bank statements and credit card transactions for any unusual activity.

Final Thoughts: Stay Alert This Tax Season

Tax identity theft and scams continue to evolve, but by staying informed and taking proactive security measures, you can protect your personal and financial information. Always verify IRS communications, file your taxes early, and use strong security practices to prevent fraud.

For the latest updates on tax-related scams and fraud prevention, visit IRS.gov.

Disclaimer – Our team has carefully fact-checked this article to make sure it’s accurate and free from any misinformation. We’re dedicated to keeping our content honest and reliable for our readers.