February isn’t just about romance—it’s also prime time for tax scams. While you’re gathering documents, fraudsters are sharpening their tricks, preying on taxpayers with deceptive schemes that can have serious consequences.
IRS data shows that tax scams surge from January through April. Last year, criminals exploited the Employee Retention Credit (ERC), charging businesses steep fees for fraudulent claims—many of which taxpayers didn’t even qualify for. The scam became so widespread that the IRS launched a withdrawal program to help victims undo the damage.
Common Tax Scams to Watch Out For
Tax fraud is especially dangerous because most taxpayers want to avoid government trouble. Scammers capitalize on this fear, posing as IRS agents, tax software providers, or financial colleagues, demanding immediate action.
It’s early in tax season, but cybercriminals are already in inboxes. Take a moment to learn about these common scams and how to protect yourself.
- Phishing & Smishing Attacks
Fraudsters impersonate the IRS through fake emails and text messages, promising refunds or issuing threats to steal your personal data. Businesses and tax professionals are prime targets since they hold a wealth of financial information.
How to stay safe: Never click on suspicious links or respond to unexpected IRS messages. Report phishing attempts to [email protected] and verify communications directly through IRS.gov.
- Fake IRS Account Assistance
Scammers offer to “help” set up IRS online accounts, but their real goal is identity theft. They collect Social Security numbers and other personal details to file fake tax returns and steal refunds.
How to stay safe: Set up your IRS account only through IRS.gov, and ignore unsolicited help offers. If someone reaches out, assume it’s a scam.
- Fuel Tax Credit Fraud
The IRS warns against fraudulent Fuel Tax Credit claims, which are strictly for off-highway business or farm use. Scammers fabricate receipts and charge fees for false claims, leaving you at risk of audits, penalties, or even criminal charges.
How to stay safe: Only claim this credit if you qualify and consult a trusted tax professional to ensure compliance.
If It Sounds Too Good to Be True, It Probably Is
Scammers flood the internet with promises of big tax savings, but easy money often comes with serious risks. Falling for these schemes could lead to IRS penalties or legal trouble.
This year, simplify tax season by sticking to legitimate filing methods. For more scam prevention tips, check the IRS Dirty Dozen list to stay informed and protected.