
Refund fraud and identity theft are escalating as diminished IRS oversight creates openings for increasingly sophisticated scams. Criminals now use social media and phishing emails to impersonate IRS officials and deceive taxpayers with false refund promises. They specifically target small business owners, individuals with tax debt, and filers pursuing family leave or self-employment tax credits. The IRS urges taxpayers to verify refund messages, avoid dishonest tax preparers, and report fraud immediately through authorized government platforms.
An IRS refund scam occurs when criminals impersonate the Internal Revenue Service to deceive taxpayers with fake refund offers or tax debt solutions. Scammers send phishing emails, text messages, or social media posts requesting personal or financial information under the pretense of processing a tax return. The IRS warns taxpayers that it does not initiate contact through unsolicited emails, calls, or messages demanding immediate payment or refunds.
These tax scams increase as IRS oversight decreases, allowing criminals to request personal data and file fraudulent tax returns. They often pose as tax professionals or dishonest tax preparers, targeting self-employed individuals and off-highway business owners claiming a self-employment tax credit. To report fraud, taxpayers should use the IRS website, contact the Treasury Inspector General, or report the issue to the Federal Trade Commission and local law enforcement.
The Internal Revenue Service warns taxpayers to remain vigilant as tax scams proliferate through various online and offline channels.
The IRS generally does not initiate contact through social media channels or emails claiming false tax refunds or tax credits.
The Internal Revenue Service reminds taxpayers that it will never initiate contact through text messages, social media channels, or phishing emails. When the IRS contacts taxpayers, it does so initially by mail, never through an email claiming a refund or tax credit. Legitimate IRS phone calls occur only after written notices have been sent, and agents never request personal or financial information over the phone.
Scammers posing as fake IRS representatives demand immediate payment through prepaid debit cards, wire transfers, or even gift cards. They exploit social media posts and fake tax preparer ads to collect sensitive information from self-employed individuals and families. The IRS warns taxpayers to verify every notice through the official IRS website, report fraud promptly, and consult trusted tax professionals.
Victims of fake IRS refund messages or dishonest tax preparers must take action promptly to protect their personal and financial information. They should report fraud to the Federal Trade Commission, Treasury Inspector General, or other law enforcement groups handling tax-related scams. Submit Form 14039 through the IRS website to secure sensitive information and prevent further identity theft or fraudulent tax returns.
The Internal Revenue Service urges taxpayers to remain cautious as tax scams continue to evolve through phishing emails, text messages, and social media posts. Criminals posing as the fake IRS send an email claiming you owe taxes or must make an immediate payment by wire transfer or prepaid debit card. The IRS warns taxpayers that it does not initiate contact through these methods or accept gift cards for any tax-related payment.
To avoid falling victim:
The Treasury Inspector General and other law enforcement groups urge self-employed individuals and business owners to report suspicious emails and phone calls. If a phishing email requests sensitive information, such as a driver’s license or banking details, immediately bring it to the Federal Trade Commission or local police. The IRS generally contacts taxpayers by mail to discuss tax debt, fraudulent tax returns, or unpaid tax years, not through social media channels or fake refund offers.
Taxpayers can access reliable resources from the Internal Revenue Service, Treasury Inspector General for Tax Administration, and Federal Trade Commission to verify alerts, learn prevention strategies, and report fraud effectively. The Internal Revenue Service frequently updates its Tax Scams and Consumer Alerts page to expose emerging tax-related schemes. Meanwhile, the Treasury Inspector General for Tax Administration and the Federal Trade Commission provide official resources and tools for fraud prevention and reporting to safeguard taxpayers.