Protect Yourself from Tax Scams This Season

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It’s that time of year again - tax season. Let’s not let the fraudsters cash in on our hard-earned money or steal our identity.
Fraudsters use many methods to steal personal information, file fraudulent tax returns and commit financial crimes. They call, email, or text you making it appear that they are from the IRS. Some stories claim you owe back taxes or there is an issue with your tax return. They may threaten to take your driver’s license, arrest, or deport you if you don’t pay up fast with gift cards, a money order or wire transfer.
Last year, the Internal Revenue Service identified over $9.1 billion of fraud, including cybercrimes according to their annual (2024) Criminal Investigation Report.
You can avoid these scams by watching out for the warning signs. Here are three of the most common scams:
Phishing and Smishing
Fraudsters use both phishing, which uses email and smishing, which uses a text message, to get direct access to you. We are seeing fraudsters use more text messages because individuals have become educated on fraudulent phishing emails. Here are some red flags to watch for in these messages:
- Claim to be from the IRS or Turbo Tax
- Convey a sense of urgency
- Have a deadline you must adhere to
- Threaten you to pay up or be deported or arrested
- Impersonate a charitable organization to request donations for recent disasters or tragedies
Once you click a malicious link in an email or text, malicious software may be installed on your device. Fraudsters may ask for personal information which can lead to identity theft, or it may initiate a phone call, in which information is requested. Once they start calling and you answer, they will be relentless until they get you to give them what they are seeking.
Don’t reply or click links or attachments; instead delete the email or text. Always avoid giving out personal information unless you initiate the conversation. Never trust a link in an email, social media, text, or information given in a phone call unless you verify it. If the IRS needs to contact you, they will initially send a paper letter.
Tax Identity Theft
Tax Identity theft occurs when someone has stolen your name and social security number and files a tax return using your information. They attempt to file early to beat you to the punch. Victims don’t realize what’s happened until they try to file, and the IRS rejects their return, stating that a return has already been filed.
Warning Signs of Tax ID Theft:
- You receive a notice from the IRS about a suspicious return filed in your name.
- Your tax return is rejected.
- The IRS send you a tax transcript you didn’t request.
- You get notified from the IRS about an online IRS account that’s been created or accessed without your knowledge.
- You receive a letter about a refund you didn’t receive or request.
The best way to avoid tax ID fraud is to file your taxes early. The sooner you file the better. The criminals will have no luck if you already have filed.
Fake Charities
Fraudsters will use any natural disaster or crisis to create a fake charity, making it appear legitimate to take advantage of our good intentions and generosity.
Most fraudsters will use email or phone calls to solicit donations by spoofing the email sender or the caller ID to appear as the charity.
Here are a few things to remember:
- Never give in to pressure. Fraudsters will focus on an urgent need to pressure you into giving right away.
- Verify the charity’s exact name. Look it up for yourself, not in a link from an email. Do not use a phone number they provide, always look it up for yourself.
- Never donate by using a gift card or wiring money. The safest way to donate is using your credit card or check, only after you have verified the charity or site is legitimate.
- If you want to donate, go directly to the charity’s website to donate, even if you feel the email you received is legitimate.
How will I know if the IRS is really contacting me?
The IRS will NEVER initiate contact using email, text, or social media. They will send you a paper letter in the mail via the U.S. Postal Service. You can verify the authenticity of any letter from the IRS by searching for it on IRS.gov.
There are several reasons the IRS may need to contact you:
- You may have a balance due.
- Your refund has changed.
- They have a question about your return.
- They need to verify your identity.
- They changed or corrected your return.
- There is a delay in processing your return.
Once they send the initial letter, with your permission, they may contact you through email, text, or phone.
Remember, the IRS will Never:
- Threaten you for a payment over the phone
- Contact you or take payment on social media
- Accept gift cards or prepaid debit cards as payment
- Threaten to call law enforcement or immigration officials
- Take your citizenship status, driver's license or business license
- Leave pre-recorded voicemails (robocalls)
- Mail tax debt resolution advertisements
Legitimate ways to pay the IRS if you owe taxes:
The IRS will only accept payment by:
- Your bank account
- By debit or credit card or digital wallet
- In business tax account
- Through EFTPS
- Same-day wire— Bank fees may apply
- Check or money order— Through U.S. mail
- Cash— Through a retail partner and other methods
- Electronic funds withdrawal — During e-filing only
If You Suspect Fraud:
If you are a victim of any of these scams don’t be embarrassed, these fraudsters are sneaky and sophisticated. Report it immediately!
If you suspect tax ID fraud:
- Report it to IdentityTheft.gov
- Also report it to the IRS. If you got an IRS notice that your return was rejected because someone already used your SSN or ITIN to file, immediately call the number on the notice.
- Complete Form 14039, Identity Theft Affidavit. you can submit Form 14039 online or by mailing Form 14039-PDF.
- If your problem still isn’t resolved, you can contact the IRS at 800-908-4490.
If you suspect a tax scam:
Final Takeaway
By being aware and informed, you can protect yourself from tax cybercrimes and ensure your personal information and money remain secure.
If you think you’ve been scammed and/or feel your bank account may have been compromised, we are here to help. Stop into your favorite branch to talk to one of team members, chat with support within your online banking or mobile banking app or call us at 888-406-2220. You can also simply click the button below to contact us online.
About the Author

Margo Leiter, CISM, Information Security Officer
Margo Leiter is a resident DeSoto County, where she began her banking career in 1981 at Crews Bank & Trust, formerly First State Bank of Arcadia. In 2008, she took on the role of Information Security Officer for Crews Bank & Trust.