IRS Issues New Warning For Taxpayers To Avoid Losing Money, Personal Data
Even if you’ve already filed your taxes for the year, the Internal Revenue Service is warning Americans to stay alert for common tax scams that could cost them money or expose personal information.
In a just-released statement, the IRS emphasized that scammers operate not only during tax season but year-round. These bad actors often impersonate the IRS and use fear tactics or misinformation to pressure people into revealing personal, financial, or employment details.
Common Tax Scams to Watch For:
- “Too Good To Be True” Promises
Scam posts on social media may encourage you to lie on your tax forms or falsely claim credits. Be skeptical of advice that promises unusually large refunds or financial windfalls—if it sounds too good to be true, it probably is. - Threatening Communications
Fraudsters posing as IRS agents may demand immediate payment and use threats of arrest or deportation. These impersonators typically don’t allow you to dispute the amount supposedly owed. - Fake IRS Websites
Scammers often use misspelled or strange-looking web links to trick taxpayers into visiting fake sites instead of the official IRS.gov.
Misinformation On Social Media
The IRS warns of widespread tax misinformation being shared online, especially false claims about credits such as the Employee Retention Credit and the Fuel Tax Credit. One prevalent myth is a so-called “Self-Employment Tax Credit,” promoted to self-employed individuals and gig workers. In truth, no such credit exists.
The misinformation appears to be based on the actual Credits for Sick Leave and Family Leave, which have specific requirements and are often misrepresented. Filing based on bad advice can lead to invalid claims and serious consequences.
Other Common Scams
- Fake Assistance With IRS Online Accounts
Some scammers offer to “help” you set up your IRS online account, but their real goal is to steal your personal data. Always create your IRS account directly at IRS.gov. - Phishing And Spearphishing Attacks
These scams use fraudulent emails or texts to pose as legitimate IRS or financial entities, trying to trick taxpayers and tax professionals into revealing sensitive data. Spearphishing targets individuals with personalized messages and is especially dangerous for tax professionals due to the risk of client data breaches. - Dishonest Tax Preparers
While most preparers are trustworthy, some may charge fees based on refund size or refuse to sign the return—signs of a fraudulent “ghost” preparer. By law, paid preparers must sign the return and provide their Preparer Tax Identification Number (PTIN). - Misleading “Offer In Compromise” Promotions
Offers in Compromise are legitimate IRS programs to help those who can’t pay their tax debts. However, so-called “Offer in Compromise mills” aggressively push these services to ineligible taxpayers, often charging thousands of dollars unnecessarily. Taxpayers should use the IRS’s free Offer in Compromise Pre-Qualifier Tool to check eligibility.
Stay Safe
The IRS urges both taxpayers and tax professionals to stay vigilant, especially as scammers evolve their tactics. Visit IRS.gov for trusted information and updates.
Soource: CPA Practice Advisor
