Tax Scams People Fall For Every Year
Chad Dickinson • April 3, 2025
Tax season is stressful enough without worrying about scammers. Every year, thousands of people lose money, compromise personal information, or even wind up with IRS trouble because of fraudulent schemes. Below are three of the most common scams, updated with the latest twists and tactics criminals use today.
The Phony IRS Phone Call Scam
One of the biggest scams continues to be unsolicited phone calls from people claiming to be IRS agents. They’ll often use aggressive language, threaten legal action (like arrests or lawsuits), and demand immediate payment—often via wire transfers, prepaid debit cards, gift cards, or cryptocurrency.
- Why It Works: Fear is a powerful motivator, and the callers can be very convincing. Some even spoof Caller ID to make it appear as if the IRS is calling.
- How to Spot It:
- The real IRS typically contacts taxpayers first by mail, not phone.
- They will never insist on specific payment methods or demand payment without giving you the chance to question or appeal the amount owed.
- What to Do: If you get a suspicious call, hang up and report it to the Treasury Inspector General for Tax Administration (TIGTA) at 800-366-4484.
The Email & Text “Phishing” Scam
Scammers send official-looking emails or text messages that appear to come from the IRS, tax software companies, or even your bank. They request personal information or ask you to click a link to “verify” your account.
- Why It Works: These phishing messages often include the IRS logo, official-looking forms, or even a personal detail of yours they found online—anything to gain credibility.
- How to Spot It:
- Hover over links without clicking. If the URL looks odd (not ending with “.gov” or a known domain), it’s a scam.
- The IRS never initiates contact with taxpayers by email, text, or social media.
- What to Do: Forward suspicious emails to phishing@irs.gov, then delete them. Never click on links or open attachments from unknown senders.
The Ghost or Fake Tax Preparer Scam
During tax season, “pop-up preparers” show up online and in person, promising huge refunds or “special programs” only they know about. Often, they prepare your return incorrectly or fraudulently to score a bigger cut for themselves (they might base their fee on a percentage of your refund). When the IRS realizes the return is incorrect or suspicious, you are on the hook for fines and back taxes—while the ghost preparer vanishes.
- Why It Works: People trust the “expert,” assume they’ll handle everything, and often don’t realize the preparer is unqualified, unscrupulous, or just plain fake.
- How to Spot It:
- They refuse to sign the return or provide a Preparer Tax Identification Number (PTIN).
- They won’t give you a copy of your own tax return.
- They offer to deposit your refund in their bank account first.
- What to Do: Use the IRS Directory of Federal Tax Return Preparers to find credentialed professionals, or at least verify your preparer’s PTIN. Make sure the person signs your return.
How to Protect Yourself Year-Round
Guard Your Personal Info
Never share your Social Security number or bank details unless you’re sure who you’re dealing with.
File Early
The earlier you file, the less time a scammer has to file a fake return in your name.
Check Your Mail
The IRS and state tax agencies rely on letters, so open everything addressed to you.
Use Secure Portals
Only submit tax documents through encrypted websites or secure portals provided by trusted tax professionals.
Monitor Your Accounts
Watch for suspicious activity in your bank and credit accounts. If you notice anything off, take immediate action.
When in Doubt, Reach Out
If something doesn’t feel right—whether it’s a phone call, an email, or a new “tax service” offering miracle results—take a pause. You can always contact the IRS directly, or call our team at Arch Tax for guidance. We’re here to ensure you stay protected while getting your taxes done correctly.
Stay safe out there, and as always, if you need help or want to discuss your tax situation, don’t hesitate to reach out.
Schedule a FREE consultation with us today.
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You trust your tax preparer with some of your most sensitive personal and financial information. But what happens if scammers target them—and end up with your data? Unfortunately, there’s a real scam going around that does exactly that. Here’s how it works and how you can protect yourself. The Scam in Action Criminals send fake emails to tax preparers, pretending to be from the tax software company the preparer uses. These emails ask the preparer to “verify” their Electronic Filing Identification Number (EFIN) —a number the IRS uses to identify legitimate tax businesses. The email tells them to send the EFIN information by fax. If the preparer falls for it, scammers can use that EFIN to file fake tax returns in clients’ names—claiming fraudulent refunds. Why This Matters to You If your preparer’s EFIN is stolen, scammers could: File a fake return using your personal information Claim your refund before you do Cause IRS delays and red flags on your account Make it harder and slower for you to get your real refund Signs of Trouble Here are a few warning signs that could mean your personal tax information was compromised: You try to e-file and the IRS says a return has already been filed under your name You get a letter from the IRS about a tax return you didn’t file You receive unexpected tax documents in the mail What You Can Do You can’t stop scammers from targeting tax professionals, but you can take steps to protect yourself: Ask your preparer how they protect client data — A good tax pro will use secure portals and never send sensitive info over unencrypted email. Consider getting an IRS Identity Protection PIN (IP PIN) — This is a 6-digit number that prevents anyone from filing a return in your name without it. Act quickly if you suspect fraud — Contact your tax preparer, report it to the IRS, and follow their steps to secure your account. Bottom Line The EFIN scam targets tax preparers, but it’s taxpayers who can suffer the consequences. By choosing a preparer who takes security seriously—and staying alert to signs of fraud—you can greatly reduce your risk. If you think your information may have been compromised or want help setting up extra IRS protections, contact Arch Tax today . We’ll help you secure your account and make sure your tax return is filed safely and accurately.
If you filed for an extension, your new tax deadline is October 15, 2025 . That gives you a little extra time — but not much — to get everything in order. Many taxpayers in your shoes consider hiring a professional to help finish the return. But here’s the catch: Not all tax preparers are created equal. Some are helpful pros. Others? Not so much. Choose the wrong one, and you could risk your refund — or worse, find yourself in a mess with the IRS. Here are the biggest red flags to watch out for when choosing a tax preparer: 1. They Promise Bigger Refunds Than Everyone Else If someone claims they can get you a “huge refund” before they’ve even looked at your documents, that’s a giant red flag. A legitimate preparer doesn’t make promises until they’ve seen the facts. 2. They Want Your Refund Deposited into Their Bank Account Never agree to this. Your refund should be deposited directly into your bank account — not theirs. This is a shady tactic some preparers use to skim fees or delay payments. 3. They Won’t Sign the Return By law, paid preparers must sign your return and include their Preparer Tax Identification Number (PTIN) . If they refuse? Walk away. 4. They Don’t Ask for Records or Receipts Good tax pros ask a lot of questions and request documentation. If someone is willing to prepare your return based only on a pay stub or vague guesses, that’s a problem. 5. They Base Their Fee on Your Refund Size A preparer who charges a percentage of your refund has a financial incentive to fudge the numbers. Reputable pros charge flat or hourly fees — not a cut of your return. 6. They Can’t Be Reached After Tax Season What happens if the IRS sends you a notice in December? Make sure you’re working with someone who’s available year-round — not just from January to April. What You Should Look For A valid PTIN IRS e-file access Transparency in pricing Willingness to review the return with you Available to answer questions even after October Final Tip: You Are Still Responsible No matter who prepares your return, you are legally responsible for what gets filed. Don’t sign a return you haven’t reviewed — and never sign a blank one. Need Help You Can Trust? At Arch Tax, we pride ourselves on transparency , ethics , and experience . We’ve helped hundreds of clients meet their tax deadlines — without the red flags. Let’s make sure your return gets filed right. Schedule a free consultation today!
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