Yes, tax refund scams are common and they target people at every income level
Tax refund scams are real and happen every year. Scammers use your personal information to file a fake tax return in your name, claim a refund, and pocket the money before you know what happened. Others pose as the IRS by phone, email, or text to trick you into sending money or revealing your Social Security number. A third group offers to file your taxes for free but steals your refund or sells your data. The IRS does not initiate contact by phone or email to demand payment, and the agency will never ask for gift cards, wire transfers, or iTunes codes.
Refund fraud costs the government billions each year and can leave you tangled in paperwork for months. The good news is that the most common scams follow predictable patterns, and you can protect yourself by knowing what to watch for.
Key Takeaways
- The IRS will never call you demanding immediate payment, threaten arrest, or ask for payment by gift card or wire transfer.
- Identity theft refund fraud happens when someone files a return using your Social Security number before you do, and you may not discover it until you try to file.
- Phishing emails and texts that look like they come from the IRS are designed to steal your login credentials or personal information.
- Tax preparers who offer unusually high refunds or ask you to sign blank forms are running a scam that can make you liable for penalties and back taxes.
- You can report suspected scams to the IRS, the Treasury Inspector General, and the Federal Trade Commission, and these reports help shut down operations.
The IRS impersonation scam: what the real IRS will never do
The most widespread tax refund scam is someone pretending to be the IRS. They call, email, or text you claiming you owe money, that your refund is delayed, or that your account has been flagged. They create urgency by threatening arrest, wage garnishment, or deportation. They demand payment immediately by gift card, iTunes card, wire transfer, or cryptocurrency.
The IRS does not work this way. The real IRS will never call you out of the blue to demand payment. The agency will never threaten arrest or legal action by phone. It will not ask you to pay by gift card, wire transfer, or any untraceable method. If the IRS needs to contact you about a tax issue, it sends a letter to your mailing address first. You can always call the IRS yourself at 1-800-829-1040 to verify whether you actually owe money.
If you receive a call, email, or text claiming to be from the IRS and demanding payment, hang up or delete it. Do not click links or download attachments. Do not give out your Social Security number, bank account, or credit card information.
Identity theft refund fraud: when someone files a return using your name
In this scam, a criminal uses your Social Security number to file a tax return before you do. They claim a refund and have it sent to a bank account or address they control. You discover the fraud when you try to file your own return and the IRS tells you a return has already been filed under your name.
This type of fraud is harder to catch immediately because you may not file your taxes until months after the criminal has already claimed your refund. The IRS has systems to detect duplicate returns, but they do not catch every case. If you suspect your identity has been stolen, file your return as soon as possible after January 1st, before a scammer can. If you discover that a return was already filed in your name, contact the IRS Identity Theft Hotline at 1-800-908-4490 and file Form 14039, Identity Theft Affidavit, with your actual return.
The IRS will investigate and issue a corrected refund to you once the fraud is confirmed. The process can take several months, and you may need to provide documentation proving your identity and that you did not file the fraudulent return.
Phishing emails and texts designed to steal your login information
Scammers send emails or texts that look like they come from the IRS, the Treasury Department, or tax software companies. They include logos, official language, and links that look legitimate. The message says your account needs verification, your refund is ready, or there is a problem with your return. You click the link and land on a fake website that looks almost identical to the real one. You enter your username, password, Social Security number, or bank details, and the scammer now has access to your accounts.
The IRS does not send unsolicited emails asking you to verify information or click links. If you receive an email claiming to be from the IRS, do not click any links. Instead, go directly to IRS.gov by typing the address into your browser yourself, or call the IRS at 1-800-829-1040. Tax software companies like TurboTax, H&R Block, and TaxAct also do not send unsolicited emails asking you to log in or verify your identity.
If you clicked a link and entered information, change your passwords immediately and monitor your credit report for suspicious activity. You can place a fraud alert on your credit file by contacting one of the three major credit bureaus: Equifax, Experian, or TransUnion.
Tax preparer scams: high refunds, blank forms, and stolen data
Some tax preparers run scams by promising unusually large refunds, asking you to sign blank or incomplete forms, or inflating deductions and credits you do not actually have. They may also collect your personal information and sell it to identity thieves. When the IRS audits the return and discovers the fraud, you are the one held responsible for penalties, interest, and back taxes—even though you did not know the return was false.
A legitimate tax preparer will explain every deduction and credit on your return, show you the completed form before you sign it, and never ask you to sign blank documents. They will not promise a specific refund amount before reviewing your actual income and expenses. If a preparer offers a refund that seems too high or asks you to sign forms you have not reviewed, find someone else.
Check whether a tax preparer is registered with the IRS by looking them up in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. Preparers with a Preparer Tax Identification Number (PTIN) have met basic standards. You can also check with your state's licensing board if the preparer claims to be a CPA or enrolled agent.
What to do if you think you have been scammed
If you have lost money or given out personal information to a scammer, act quickly. First, contact your bank or credit card company and report the fraud. If you sent money by wire transfer or gift card, contact the service immediately—some transfers can be stopped if reported within hours.
Report the scam to the IRS at phishing@irs.gov if it was an email, or to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484. You can also file a report with the Federal Trade Commission at ReportFraud.ftc.gov. These agencies track scams and use the reports to identify and shut down operations.
If your identity was stolen or your personal information was compromised, place a fraud alert on your credit file and consider a credit freeze. Monitor your credit report for accounts or inquiries you did not authorize. You can obtain a free credit report from each of the three bureaus once per year at AnnualCreditReport.com.
How to protect yourself before filing
The best defense against tax refund scams is prevention. File your return early in the tax season, before a scammer can file one using your name. Keep your Social Security number private and do not share it unless you are certain you are dealing with a legitimate organization. Use strong, unique passwords for any online tax accounts and enable two-factor authentication if the service offers it.
Be skeptical of unsolicited contact about your taxes. The IRS will not call you first. Tax software companies will not email you asking to verify your identity. If you are unsure whether a message is real, hang up or do not click, and contact the organization directly using a phone number or website you find yourself.
If you use a tax preparer, choose someone with credentials and a good reputation. Ask questions about how they calculate your refund and what deductions they are claiming. Never sign a blank form or a form you have not read.
Frequently Asked Questions
Can the IRS really arrest me for owing taxes?
Criminal prosecution for tax evasion is rare and requires proof of intentional fraud, not simply owing money. The IRS uses civil collection methods first—liens, levies, and wage garnishment. If someone calls threatening arrest over the phone, it is a scam. The real IRS sends letters.
What should I do if I received a refund I did not expect?
Contact the IRS immediately at 1-800-829-1040. Do not spend the money. The IRS may have made an error, or someone may have filed a fraudulent return in your name. The agency will investigate and may ask you to return the funds.
Is it safe to file my taxes online?
Yes, if you use an official IRS-approved software provider or the IRS Free File program. Make sure you are on the real website by typing the address yourself, not clicking a link in an email. Use a secure internet connection, not public WiFi, when entering sensitive information.
What if a tax preparer I hired filed a fraudulent return?
You are still responsible for the return you signed, even if the preparer committed fraud. Report the preparer to your state's licensing board and to TIGTA at 1-800-366-4484. Work with the IRS to correct the return and file an amended return if needed. You may be able to recover some costs through a civil lawsuit against the preparer.
How do I know if my identity was stolen for tax purposes?
You will typically discover it when you try to file your own return and the IRS tells you one has already been filed under your name. You may also receive a tax form (like a W-2) for income you did not earn. Contact the IRS Identity Theft Hotline at 1-800-908-4490 immediately if this happens.