Every tax season brings a fresh wave of scams designed to separate you from your refund, your identity, or both. Fraudsters have gotten savvier — posing as the IRS, spoofing tax software login pages, even setting up fake tax prep shops that vanish after filing season.
The good news: most of these schemes share a few telltale signs once you know what to look for. Here are 12 tax scams making the rounds this year, and how to spot them before they cost you.
1. Phishing Emails & Scam Calls
Scammers may send emails or make calls pretending to be the IRS to try to get your personal information or infect your device with malware. These messages can sound and look convincing. Even so, scammers can spoof real IRS phone numbers. However, it is important to remember that the IRS does not call taxpayers to ask for payment or request private details.
2. Bad Tax Tips on Social Media
There is often inaccurate and misleading tax information online. People can pose as professionals but have harmful intentions. If a tip sounds too good, it is likely untrue.
3. Fake Help Setting Up IRS Online Accounts
Scammers can offer misleading assistance with setting up IRS accounts online. Their goals could include gathering Social Security numbers, addresses, and other personal information to commit identity theft.
4. Scam Charities
When national emergencies increase, more fake charities are created. Be aware of these organizations by confirming their tax-exempt status on irs.gov. Real charities do not call and pressure you for payment, donations, gift cards, or wire transfers.
5. Untrue Fuel Tax Credit Claims
Fraudsters will convince taxpayers to claim the fuel tax credit even if it does not apply to them. The fuel tax credit only applies to off-highway or agricultural uses. Because of this, taxpayers who do not qualify for the fuel tax credit but still claim it could be charged penalties.
6. Misuse of the Sick and Family Leave Credit
This credit was only available for self-employed individuals in 2020 and 2021. Some scammers will still persuade taxpayers that they can claim it after these years or on wages earned as an employee. However, this is incorrect.
7. Fake Self-Employment Tax Credit
Individuals who are self-employed or gig workers can be convinced by taxpayers that they are eligible for a tax credit of up to $32,000. These individuals should be aware that this special tax credit does not exist.
8. Fraudulent Household Employment Claims
Taxpayers can be told by scammers that they can receive a refund if they claim false domestic employees and submit claims for paid sick or family leave wages that were never paid.
9. Inflated Withholding Schemes
Fraudsters can sway taxpayers to create fabricated W-2 or 1099-NEC/MISC Forms with significant withholding amounts to acquire large refunds.
10. Misleading IRS Offers
Avoid anyone who claims that they can resolve IRS debt for little to nothing. Some scammers will charge excessive fees and submit Offer-in-Compromise applications when they know taxpayers are ineligible. The IRS offers taxpayers to check their eligibility on the Offer in Compromise Pre-Qualifier.
11. “Ghost” Tax Preparers
Unethical preparers will refuse to sign tax returns, insist on cash payments, fabricate income, deductions, and/or credits to increase refunds. A valid tax professional will sign the tax return and include their PTIN.
12. Seniors at Higher Risk
Scammers contact people 65 and older – or nearing retirement – to gather personal financial information. Once money is given, they will continue to ask for more. Furthermore, scammers will convince you to withdraw funds from your retirement account, which could result in serious tax consequences.
Let NSO be your Valued Tax Resource
Always consult a trusted tax professional if you are curious about any information you have received. Be cautious of unusual behavior and/or poorly constructed sentences. Call NSO and Company, Inc. at (317)-588-3131 to schedule a meeting for tax and accounting advice.
