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Avoiding Tax Return Scams

March 21, 2025 - Dr. Taylor Fisher

Dr. Taylor Fisher is a research associate with the School of Criminal Justice, and a Center Associate with the MSU Center for Cybercrime Investigation & Training. In this op-ed, she discusses tax return scams and how to protect yourself from them during tax season.

 

Photo of Dr. Taylor FisherYou may have seen quick money advertisements that tend to pop up around this time of the year. The ads suggest that, with the addition of a few key tax credits, you can earn a huge check with your tax return. This typically includes providing false information to the Internal Revenue Service (IRS) and for a large fee, these individuals will help you do it. During tax season, scammers use a wide range of tactics to target your private information. While some promise get-rich-quick schemes, others will spoof calls to seem like they are from the IRS. These scammers are reaching their targets through a range of communication platforms, including email, phone calls, and text messages.  

It's important to note that while some of these scams are simply empty promises, providing false information to the IRS can get you in a heap of trouble. It’s important to do your due diligence and ensure that you don’t turn over information to scammers. The IRS and the Federal Trade Commission (FTC) both provide resources on spotting scams to consumers in the United States.  

 

The IRS identifies three key red flags:  

  1. A big payday
  2. Demands or threats 

  3. URLs or direct links that redirect to unofficial sites.  

 

These types of scams include quick money scams, false credits or misinformation, and ads suggesting special programs for seniors or new tax filers. These types of tax related scams have evolved into such a wide range that the IRS identifies an annual “Dirty Dozen” tax related scams. 

Although several possibilities exist for how scammers will try to contact you and what they will offer, it is important to be on the lookout for a few key processes involved: 

 

Phishing/Smishing/Vishing/Quishing

Communication platforms that allow for indirect (non-face-to-face) contact allow scammers to contact you regarding your 2025 tax return. Whether it’s an email (phishing), a text message (smishing), a phone call (vishing), or a QR code (quishing) on an advertisement, remember to check the source. When in doubt, contact that party directly through contact information found on their official websites. 

Tip: The IRS will not contact you via text message or social media platforms, but it is important to review what forms of contact your key accounts use (e.g., banks, credit card companies, etc.). 

 

Social Engineering

Scammers will use information about you that they have found online in public accounts. With the information found about your on platforms like Facebook and LinkedIn, offenders can use that information to craft a message that is tailored specifically to you. For instance, if your LinkedIn profile labels your rank and role within your company, it is relatively easy to find out who your superior is and what contact information exists for them. Scammers can then spoof email addresses or phone numbers to seem to be from your boss, grandchildren, child’s school, or even the IRS themselves. 

Tip: Review the public facing accounts you have and the information associated with them. Beyond tax-based scams, finding this information allows offenders to tailor their attacks to you specifically. 

 

Fake or Misleading Tax Credits

Scammers commonly advertise fake credits or credits that do not apply to you and encourage you to use them to file your taxes. In some instances, they will offer to help you file your taxes (for a fee) and include false information or fake forms in the submission. This tax return may or may not be sent to the IRS. If it isn’t, you face the risk of not filing. If it is sent, you face consequences of making fraudulent statements. Credits for self-employment, sick leave, fuel taxes, and others are not typically found on tax returns. Trusted tax services can help find applicable credits but will not encourage you to lie or claim credits that do not exist.

Tip: It’s best not to trust third parties, especially when it seems too good to be true. If they are offering assistance and stand to earn money from it, it’s probably not real. Legitimate services exist, like TurboTax or H&R Block. If you are unsure about filing online, you can always set a meeting with an in-person tax service.  

 

Ghost Tax Returns

Someone claiming to be a tax preparer but advertises with a yard sign on the side of an intersection, is likely not to be trusted. Or, if the person claiming to be a tax preparer charges a fee based on the size of the refund, it’s probably a scam. “Ghost” preparers will not have an official Tax ID number (IRS Preparer Tax Identification Number – PTIN) which is required to be included by law. Scammers will typically ask you to sign a return before it is completed, claiming they will fill in the relevant information at a later time. 

Tip: Don’t ever sign a blank or incomplete return. This is an indicator that they are trying to illegally manipulate the document without you being aware of it. The IRS has information on how to choose a tax return preparer and what credentials to check for. 

 

 

Tax season scams are common and aren’t going to go away. It’s important to take the time to think clearly about your tax filing plans. Some tips to avoid Tax Season Scams include:

 

  1. Don’t wait until the last minute – scammers can utilize a tight deadline to create a sense of urgency. 
  2. Make sure you have all of your basic documents ready and seek assistance when necessary.  

  3. Online tax filing services are available which not only offer direct support with tax professionals but also double-check for mistakes and any relevant credits you are qualified for. These services will charge a fee, but it will be a flat fee and only be increased by additional service provisions. 

 

If you believe you have been the victim of a tax-related scam, make sure to report it directly to all relevant parties. The IRS has shared resources for responding to a scam.  

First, manage any financial concerns including your bank account, credit cards, or open loans. Call these providers and report to them any instances of fraud.  

Second, consider freezing your credit scores if you believe there is an ongoing threat, especially if new accounts are being opened in your name. Getting fraudulent credit activity removed is an important recovery step.  

Lastly, report to the IRS and the FTC about any tax-based scams. Even if the scam was not successful, if you were targeted with a scam, it can be helpful to see how widespread different scams are. Reporting unsuccessful scams can help law enforcement tie together cases in meaningful ways.  

 

Anyone pretending to be the IRS should be reported as an impersonator here.