My first blog post ever was to warn the first edition newsletter subscribers about the “fake refund” tax scam (make sure to re-read it). As a reminder, that is when a scammer pretends that they have a refund especially for you. And if you are owed a refund, file early before a scammer files a tax return in your name!
This time I want to tell you about two more damaging tax scams that target people directly through phone calls and through fake tax preparers who seem helpful at first glance.
IRS Imposter Calls
One of the most common tax scams starts with a phone call, voicemail, text, or even an email claiming to be from the IRS. The message is urgent and threatening. You are told that you owe back taxes and that immediate payment is required to avoid arrest, wage garnishment, or legal action. Sometimes the caller claims a police officer is already on the way.
This is always a scam.
The IRS does not initiate contact by phone, text, email, or social media. They do not threaten arrest or demand payment using gift cards, wire transfers, or cryptocurrency. Scammers rely on panic to push people into acting before they think. If you receive a message like this, hang up or delete it. Do not engage, and do not provide any personal information.
Bogus Tax Preparers
Another growing threat comes from fraudulent tax preparers who promise unusually high refunds. These scammers often advertise aggressively during tax season and may charge fees based on a percentage of your refund, which is a major red flag. In many cases, they insist on having the refund deposited into their own bank account before passing it along to you.
The danger does not stop there. Bogus preparers may invent deductions or credits to inflate your refund. When the IRS eventually catches the fraud, you are the one responsible for paying back the money, along with penalties and interest. The scammer is often long gone.
To protect yourself, use a reputable tax professional who has a valid Preparer Tax Identification Number, never signs a blank return, and has your refund deposited directly into your account.
When it comes to taxes, slow down, verify everything, and remember that fear and urgency are the scammer’s favorite tools.
