As tax season approaches, tax-related scams and identity theft schemes often increase as criminals look to take advantage of taxpayers during filing season.*
Older Americans may be particularly attractive targets for scammers because fraudsters often believe retirees may have:
- Retirement savings accounts
- Social Security benefits
- Investment assets
- Pension income
- Larger accumulated savings
Because of this, understanding how tax scams work and how the Internal Revenue Service (IRS) typically communicates may help taxpayers better recognize suspicious activity.
How the IRS Typically Communicates
One of the best ways to recognize a tax scam is understanding how the IRS normally communicates with taxpayers.
According to the IRS and fraud prevention experts:
- The IRS generally initiates contact through mailed letters first.
- The IRS does not typically contact taxpayers through social media.
- Unexpected text messages claiming to be from the IRS are often scams.
- The IRS generally does not demand immediate payment over the phone.
Scammers, on the other hand, often attempt to create panic or urgency in order to pressure victims into acting quickly.
Common Signs of Tax Scams
Many tax scams share common warning signs that taxpayers should recognize.
Potential red flags may include:
- Threatening language
- Demands for immediate payment
- Requests for gift cards or wire transfers
- Requests for prepaid debit card payments
- Unexpected emails with attachments or links
- Social media messages claiming to represent the IRS
The IRS generally does not request payment using gift cards, cryptocurrency, or prepaid debit cards.
How to Help Protect Yourself
There are several steps taxpayers may take to help reduce the risk of becoming a victim of tax fraud or identity theft.
Some best practices may include:
- Keeping tax documents in secure locations
- Shredding sensitive paperwork before disposal
- Filing taxes through secure, trusted websites
- Monitoring financial accounts regularly
- Reviewing tax transcripts periodically
- Using strong passwords and multifactor authentication
Consumers may also want to verify website addresses carefully before submitting sensitive information online.
Be Cautious With Emails and Links
Scammers often use phishing emails or fake websites designed to resemble legitimate IRS communications.
Before clicking links or downloading attachments, taxpayers may want to:
- Double-check email addresses carefully
- Look for spelling mistakes or unusual wording
- Avoid clicking unexpected attachments
- Type website addresses directly into your browser.
When in doubt, visit the official IRS website at IRS.gov.
Additional IRS Resources
The IRS also provides educational resources about scams and identity theft prevention.
Taxpayers interested in learning more may visit:
These pages include updated scam warnings, reporting tools, and identity protection guidance.
The Bottom Line
Tax scams often become more common during filing season, especially when scammers believe taxpayers may be distracted or eager to receive refunds.
Understanding how the IRS communicates, recognizing common warning signs, and protecting sensitive information may help taxpayers reduce their risk of tax fraud.
Source: National Council on Aging (NCOA)
