Latest IRS Scams: How to Spot Them and Fight Back

IRS scams involve criminals impersonating IRS agents, other government employees or debt collectors in an effort to trick you into sending them money for taxes, penalties or fees you don't actually owe. Typically, these scams play out over the phone, text, online or via the mail.

Here’s a list of recent IRS scams, tips on how to spot one and where to report fraudulent activity.

The latest IRS scams

1. Social media scams

Submitting false information to the IRS could land you in serious trouble. An honest mistake, such as a typo or forgetting to include income from a stray 1099, can be remedied by filing an amended tax return, but falsifying information or altogether making numbers up in hopes of getting a larger-than-life refund is a big no-no. The agency could hit you with substantial penalties, including a $5,000 fine or even criminal charges^[0]

Taxpayers who encounter social media scams encouraging them to input false information, incorrectly claim credits they do not qualify for, or claim household employees who do not exist should understand that these too-good-to-be-true schemes are exactly that. And remember, the IRS also gets a copy of your W-2 from your employer, so it can easily check what you submit against what your employer turned in.

2. IRS account sign-up scam

Setting up an online account with the IRS can get you access to valuable information, such as your payment history or a tax transcript. You can even sign up for and/or manage an IRS payment plan through the system. The agency warns taxpayers to be especially wary of anyone who attempts to help them set up an account, though. Scammers may be attempting to steal sensitive information — such as Social Security numbers, tax identification numbers or photo IDs — under the guise of helpfulness. You can set up an online IRS account by yourself for free on the agency's website, and if you require assistance, work directly with the IRS^[0]

3. Donation and charity scams

Generosity can go a long way on your taxes: Itemizers are generally able to write off a certain amount of charitable contributions or donations as deductible expenses. The key to taking advantage of this deduction properly? Make sure the organization you're donating to is an IRS-recognized charity — and take extra steps to confirm so.

The IRS warns taxpayers that fake charities often employ tactics such as pressuring people into making payments quickly or asking for donations in the form of gift cards or bank wire transfers. The best way to ensure that your money is going exactly where it should be is to check the IRS' TEOS tool to confirm the organization's tax-exempt status^[0]

4. Fuel tax credit scam

The credit for federal tax paid on fuel is specifically for off-highway business and farming use, and the majority of taxpayers don't qualify. The IRS urges taxpayers to be aware of dishonest tax preparers and social media posts promising large refunds through the credit. To help curb misinformation about who qualifies, the IRS added a new section to the Form 4136 instructions outlining its eligibility requirements^[0]

5. Credits for sick and family leave scams

The credits for sick leave and family leave for certain self-employed individuals were panemdic-era credits only available for tax years 2020 and 2021. The IRS is aware of 1) people who are not self-employed trying to claim the credit and 2) people creating fake household employees in an attempt to get a refund of sick and family leave wages they didn't pay. The agency is closely reviewing tax returns with this credit, and you may face penalties for an erroneous claim.

6. Self-employment tax credit scam

Be vigilant about social media posts claiming self-employed people qualify for payments of up to $32,000 through the "self-employment tax credit." This is a nonexistent credit that scammers are promoting; in reality, they are referring to the credits for sick leave and family leave, which have not been active for the last few tax years and the vast majority of taxpayers do not qualify for.

7. Ghost tax preparer scams

Anyone you pay to prepare your tax return must have a valid preparer tax identification number and must sign your tax return. Reluctance to sign your return is a red flag that the person is a "ghost preparer" — someone who just wants to charge you a fee and then leave you hanging.

"I encourage you to look up your tax professional on the IRS’ website to verify that they are, in fact, registered to do so," says enrolled agent Nayo Carter-Gray. "This will ensure that you are working with a tax professional that is held to high ethical standards.”

8. New client scam

The IRS warns tax preparers of a phishing scam in which hackers pose as new clients in an attempt to get sensitive information or access client data. The hacker may send two emails: the first may be unsuspecting, simply asking if the preparer is taking new clients — but the second may contain a malicious link or attachment. According to the IRS, the best way to fend off these criminals is by paying attention to strange wording in emails, setting up two-factor authentication and using another communication method to verify the person's identity.

10 ways to spot IRS scams and impersonators

It is true that in rare circumstances the IRS will come to a home or business. But the agency's policy of scaling back on unannounced visits makes the likelihood of this extremely low^[0]

And, in accordance with the policy, if a face-to-face meeting is necessary, taxpayers will receive mailed letters or notices from the agency to schedule the meet-up first. Some other major red flags that can help tip you off to an IRS scam include:

1. They’re calling you first. The IRS contacts taxpayers by mail first; it doesn’t initiate contact via a random phone call.

2. They’re leaving a prerecorded voicemail. The IRS doesn’t leave prerecorded, urgent or threatening voicemails.

3. They’re emailing you. The IRS doesn't initiate contact with taxpayers by email to request personal or financial information. Do not reply to the message, open any attachments or click on any links. And note that the IRS’ website is IRS.gov — not IRS.com, IRS.net, IRS.org or some other bit after the period.

4. They’re texting you. The IRS doesn't initiate contact with taxpayers by text message to request personal or financial information.

5. They’re contacting you via social media. The IRS doesn't initiate contact with taxpayers on social media channels.

6. The form they’re sending or referencing doesn’t appear on the IRS website. You can look up the names of IRS notices and letters on the IRS website. If the type of notice you received doesn’t show up on the list, it’s probably not legit.

7. They don’t know what an HSPD-12 card is. Real IRS agents have two forms of identification: a pocket commission and an HSPD-12 card. You have the right to see these credentials, and you can verify information on the HSPD-12 card by calling the IRS.

8. They’re asking for a credit card or debit card number over the phone. The IRS doesn’t do that.

9. They want you to pay only with gift cards or prepaid debit cards. The IRS doesn’t use these methods for tax payments. The IRS mails paper bills to taxpayers who owe taxes, and payment should only ever be made out to the U.S. Treasury — not a collections agency or other entity.

10. They’re saying you’ll be arrested, deported, have your driver’s license revoked, etc. The IRS can’t revoke your driver’s license, business licenses or immigration status. They also cannot threaten to immediately bring in local law enforcement. In addition, the IRS and the Taxpayer Bill of Rights give you the opportunity to question or appeal what the IRS says you owe.

But what if I really do owe the IRS money?

If you think you might owe money to the IRS, you can check that directly with the agency (for free) by creating an ID.me account through the IRS' website. If you do owe back taxes and want to make a payment, you can send money directly to the IRS or sign up for an installment plan to pay the IRS over time.

Also be wary of what the IRS calls "OIC mills," or offer-in-compromise mills. These companies may advertise to people who do not qualify for the OIC program, claiming that they can resolve a tax debt for little to no cost or that you need to contract their services immediately in order to settle with the IRS. If you think you may qualify for an offer in compromise, visit the IRS website directly and use its pre-qualifier tool to assess your eligibility^[0]

» MORE: 5 ways to deal with tax debt

How to report IRS scams