Article

How to Avoid Tax Refund Scams

Notification from IRS on an iPhone

It's filing season and many taxpayers are counting the days until they receive their tax refund. But they’re not the only ones anticipating a financial windfall. Scammers are expecting a bank account boost of their own. Bad actors aim to pocket the money you overpaid in taxes from the previous year and treat themselves at your expense.

Crooks, posing as IRS employees, use a variety of methods to get you to reveal your Social Security number and other personally identifiable information so they can file an income tax return using your stolen data. The scam comes to light for many victims when the IRS informs them that their return is rejected because another person with the same Social Security number (SSN) has already filed for that tax year.

Unlike other fraud schemes, missing the mark doesn’t always leave them empty-handed. Even if scammers fail to steal your refund, they can use the sensitive data they've collected to create a new identity and open new credit accounts in your name.

Fortunately, you can avoid their schemes by recognizing their nasty tactics.

5 Signs of a Tax Refund Scam

Tax refund scams often start with what appears to be a legitimate IRS notification sent via email, text message, or pre-recorded voicemail. Beware of bogus emails that have “IRS” in the address but do not end with “.gov”. Fake text messages may include language similar to this one: 

A tax rebate in the amount of $388.48 has been issued to you for an overpayment in 2022-2023. Click the link to continue. https://irsnotic...

Scammers frequently use spoofing technology to make caller IDs display "IRS" or "Internal Revenue Service".

Here are five more tactics fraudsters use to trick taxpayers into sharing confidential information.

  1. Phone calls offering to expedite your tax refund deposit. Fraudsters assert that you must first verify your SSN and direct deposit information.
  2. Text or email messages instructing you to click the "Tax Refund Update" or "Check Tax Refund Payment" links included in the communication. Clicking either link directs you to a fake IRS website that requires you to enter personal data to view made-up information.
  3. Private messages on social media inviting you to chat with an IRS employee to receive your refund within a few days instead of weeks. You are actually communicating with a scammer or AI chatbot created by a scammer.
  4. Communications falsely claiming that your refund is delayed due to incomplete bank account details and instructing you to enter the information via a provided link. Clicking the link downloads malware onto your device.
  5. Recorded messages urgently requesting a callback to discuss "an urgent tax issue". Scammers employ scare tactics and emotional manipulation to coax you into sharing confidential information.

Protect Yourself from Tax Refund Scams

The best way to safeguard yourself from tax scams is to understand how the IRS typically communicates with taxpayers. This federal agency does not initiate contact via text, email, or phone. They will first try to reach you through the United States Postal Service.

Unfortunately, scammers are sending out fake letters of their own. Verify the validity of any IRS letter you receive by visiting the Understanding your IRS notice or letter webpage or call 1-800-829-1040 to speak with an IRS representative.

To confirm the status of a tax refund, go straight to the source. Visit the official IRS page, Where’s My Refund, to check your refund status.

If you suspect a tax refund scam, report it to the IRS Identity Protection Specialized Unit at 1-800-908-4490. You can also forward a screenshot of the written attempt to phishing@irs.gov.