Tax Season Scams to Watch For This Year

Tax season is a busy time for taxpayers and, unfortunately, a busy time for scammers as well. Each year, the Internal Revenue Service continues to warn individuals and businesses to remain cautious of fraud attempts designed to steal personal information, trigger improper refunds, or pressure taxpayers into claiming credits they do not qualify for.

Many of these scams surface during filing season, but they can occur at any point throughout the year. Alloy Silverstein’s tax advisors often see schemes impact well-intentioned taxpayers who simply did not know what to look for.

Below are some of the most common tax-related scams and fraud attempts to be aware of this season.

Phishing emails and text message scams

Scammers often impersonate the IRS, state tax agencies, or tax software companies through emails and text messages. These messages may promise unexpected refunds or warn of account issues, audits, or penalties in an attempt to create urgency.

The IRS does not initiate contact by email or text. Never click on links or open attachments from unsolicited messages claiming to be tax-related.

Misleading tax advice on social media

Incorrect tax advice continues to circulate on social media platforms, encouraging people to misuse tax forms or claim credits they are not eligible for. Following this advice can result in delayed refunds, IRS notices, penalties, or identity theft. Always verify tax guidance with a qualified tax professional before taking action.

Scams involving IRS online accounts

Fraudsters may offer to help taxpayers set up or access their IRS online accounts. These offers are often attempts to gather personal information and file fraudulent returns in someone else’s name. The IRS provides guidance directly, and third-party assistance is not required to create an account.

Fake charities

Scam charities frequently appear after natural disasters or high-profile events, taking advantage of people’s generosity. These organizations may request donations or personal information that can later be used for identity theft. Only donations to IRS-recognized charitable organizations are eligible for tax deductions.

Improper tax credit claims

Taxpayers are sometimes encouraged to claim credits they do not qualify for, including fuel-related credits, pandemic-era sick and family leave credits, or credits that do not exist at all. Improperly claiming credits can lead to refund delays, IRS reviews, repayment of funds, and penalties. When in doubt, ask before filing.

Overstated income or withholding schemes

Some scams encourage taxpayers to fabricate income or withholding amounts on Forms W-2 or 1099 to generate larger refunds. These returns are often flagged, and refunds may be held while the IRS investigates. Tax returns should always be filed using legitimate documents issued by employers or payers.

Unreliable or unethical tax preparers

Be cautious of preparers who base their fees on refund amounts, refuse to sign returns, or ask you to sign blank or incomplete forms. These are red flags that can expose you to financial and legal risk. Working with a reputable tax professional helps ensure your return is accurate and compliant.

Business and email-based tax scams

Businesses and tax professionals are frequently targeted by phishing emails disguised as new client inquiries or vendor communications. These messages may include malicious links or attachments designed to access sensitive data. Always verify unexpected requests and be cautious before sharing financial or tax information.

Stay Alert: Warning signs to watch for

Scammers often try to create urgency or pressure to get you to act quickly. Some common warning signs include:

• A big payday – If it sounds too good to be true, it probably is. Be cautious of social media posts or advice that encourage lying on tax forms or misrepresenting credits.
• Demands or threats – Impersonators may threaten arrest, deportation, or demand immediate payment. They do not allow you to question or appeal the amount owed.
• Suspicious website links – Odd, misspelled, or unofficial links can take you to harmful sites instead of IRS.gov. Always navigate directly to official websites.

Being aware of these red flags is one of the simplest ways to protect yourself from fraud.

Scammers also rely on urgency and confusion. Taking a moment to verify requests, confirm sources, and ask questions can help prevent costly mistakes. When something does not feel right, it is always better to pause and check before responding.

How Alloy Silverstein can help

At Alloy Silverstein, our CPAs and tax advisors help individuals and businesses navigate tax season with clarity and confidence. If you receive a suspicious notice, have questions about tax credits, or want a second set of eyes on your return, our team is here to help you file accurately and protect your financial information.