Tax Season Scams to Watch Out For

Tax season can bring a sense of relief for many people, especially if a refund is on the way. Unfortunately, it is also one of the busiest times of year for scammers. Fraudsters know that people are sharing sensitive information, expecting refunds, and communicating with tax agencies, which makes it easier to take advantage of confusion or urgency.

The good news is that a little awareness goes a long way. Here are some of the most common tax season scams to watch out for and how to protect yourself.

1. Fake IRS Communications

One of the most common scams involves criminals pretending to be the IRS. These messages may come through email, phone calls, or even text messages and often sound urgent or threatening.

Scammers may claim:

• You owe back taxes and must pay immediately
• Your Social Security number has been flagged
• You are due a refund and need to provide information to receive it

What to know:
The IRS will never initiate contact via email, text, or social media to request personal or financial information. They also will not demand immediate payment using gift cards, wire transfers, or cryptocurrency.

2. Phishing Emails and Text Messages

Phishing scams are designed to trick you into clicking a link or opening an attachment that steals your information. These messages often look very convincing and may include official logos or language.

Red flags include:

• Misspellings or unusual grammar
• Generic greetings like “Dear Taxpayer”
• Links that do not match official website URLs

Tip:
Always go directly to official websites instead of clicking links in messages. If something feels off, trust your instincts.

3. Refund and Rebate Scams

Scammers know people are eager for refunds. You may receive messages promising a bigger refund or asking you to “verify” your information to process your payment.

In reality, these are attempts to collect:

• Your Social Security number
• Bank account details
• Login credentials

Remember:
If you are eligible for a refund, it will be processed after you file your taxes properly. There is no shortcut or special request required.

4. Fake Tax Preparers

Not all tax preparers are legitimate. Some scammers pose as professionals to gain access to your personal and financial information.

Warning signs include:

• Charging fees based on your refund amount
• Refusing to sign your return
• Asking you to sign a blank return
• Promising unusually large refunds

Choose a reputable, credentialed tax professional and never sign anything you do not fully understand.

5. Identity Theft and Fraudulent Returns

In some cases, scammers file a tax return in your name before you even file your own. They use stolen personal information to claim a refund.

Signs this may have happened:

• Your return is rejected because one has already been filed
• You receive a notice about a return you did not submit
• You are notified of income from an employer you do not recognize

If this happens, act quickly to report the issue and protect your accounts.

How to Protect Yourself

Taking a few simple precautions can help you stay safe during tax season:

• File your taxes early to reduce the risk of identity theft
• Use strong, unique passwords for financial accounts
• Enable multi-factor authentication whenever possible
• Keep your personal information private and secure
• Work only with trusted tax professionals
  
  

What to Do If You Suspect a Scam

If you think you have been targeted or may have shared sensitive information:

• Stop communication with the suspected scammer immediately
• Monitor your financial accounts for unusual activity
• Report the incident to the appropriate authorities
• Contact your financial institution for guidance and support

At the end of the day, staying informed is your best defense. Tax season should be a time to focus on your financial goals, not worry about fraud. By knowing what to watch for, you can file with confidence and keep your information safe.

If you ever have concerns about your account or notice suspicious activity, your credit union is here to help. Protecting your financial well-being is always our priority.