Here Are 7 Tax Scams You Need to Watch For

Tax time is here—everybody’s favorite season. Unfortunately, scammers love April almost as much as Uncle Sam does. Watch out for these common tax-related ripoffs.

• Fake IRS emails and texts. Messages claiming your refund is “on hold,” “approved,” or in need of verification are classic phishing tricks. The IRS does not initiate contact by email, text, or social media, and it will never ask you to click a link to share personal information.

• IRS impersonation phone calls. Scammers may call claiming you owe back taxes and demand immediate payment to avoid arrest or penalties. These calls often push gift cards, wire transfers, or cryptocurrency as payment options—a dead giveaway. The IRS does not make threatening calls or demand payment this way.

• Refund theft and early-filing fraud. Using stolen personal data, criminals file fake tax returns in your name to claim your refund before you do. Many victims only discover the scam when their legitimate return is rejected.

• Fake preparers. Fraudsters pose as legitimate preparers, sometimes advertising “maximum refund guarantees” or charging fees based on the size of your refund. Some use fake or stolen credentials. Always verify a preparer’s credentials and make sure they sign your return.

• Bogus tax resolution services. Ads promising to “settle your tax debt for pennies” often target people who don’t actually qualify for relief. These schemes may collect fees without providing real help.

• Social media tax advice scams. Viral posts promoting secret credits or loopholes can lead people to file false returns. Following bad advice can trigger audits, penalties, or delayed refunds.

• AI-powered scams. Newer schemes use voice cloning, deepfake videos, and polished messages to impersonate IRS agents or tax professionals, creating urgency and false trust.

 

Scammers count on confusion and urgency, but with the right information, you can stay one step ahead. And if you ever have questions or concerns, Jeanne D’Arc Credit Union is here to help you protect your finances every step of the way. You can find out more about protecting yourself and your data on our Fraud and Theft Protection page.