What You Need to Know About Tax Scams in the 2025 Filing Season

As tax season approaches, scammers become increasingly crafty with scams designed to deceive everyday taxpayers. In 2025, staying informed and attentive is more important than ever to protect your personal and financial security. Scammers are constantly developing their tactics, making it important to recognize the warning signs.

Tax scams can take various forms, including email phishing attempts and phone calls from fake IRS agents. Understanding these scams allows you to safeguard your hard-earned money and avoid falling victim to deceptive schemes.

Common Tax Scams to Watch For

Phishing Emails

Phishing emails remain one of the most widespread scams during tax season. Scammers craft messages that look like they're from the IRS, trying to lure recipients into clicking links or sharing private information. According to the IRS, in 2023 alone, phishing attacks represented 78% of reported tax fraud incidents.

To avoid such scams, remember that the IRS never contacts taxpayers through email or text messages. Look for signs such as poor grammar and a sense of urgency. For instance, if an email mentions an urgent refund query, it's likely a scam. When in doubt, delete it and report it to the IRS.

Impersonation Calls

Another common tactic involves phone calls where scammers impersonate IRS agents, demanding immediate payment for unpaid taxes. These scammers often use threats of arrest or legal action to intimidate taxpayers. In 2024, nearly 60% of reported tax fraud cases included impersonation calls, highlighting the importance of awareness. Always remember that the IRS will send a written notice before calling. If you receive a suspicious call, hang up and contact the IRS directly using official numbers found on their website.

Fake Refund Scams

Some scammers take a more deceptive approach by issuing fake tax refund checks that appear real. Victims typically cash these checks, only to find out later they were counterfeit. This can lead to bank fees and potential legal issues. In a recent survey, 45% of taxpayers reported being targeted by fake refund scams during tax season. Always verify tax refunds before cashing them, especially if the amount seems unusually high compared to your previous returns. Contact the IRS if you suspect a refund is not legitimate.

Tax Preparation Scams

During tax season, many people turn to tax preparers for help. While this can be beneficial, scammers may pose as tax professionals, charging high fees for minimal service. In a study, 30% of taxpayers reported encountering unauthorized tax preparers in 2023.

To avoid this trap, research potential tax preparers thoroughly. Check their reviews, verify their credentials, and ensure they have a valid business license. A trustworthy tax professional will be transparent about fees and services provided.

Protecting Yourself from Tax Scams

Stay Informed

Familiarize yourself with common tax scams and stay updated with IRS alerts. Websites like the IRS provide current information on tax season trends and prevalent scams.

Report Suspicious Activity

If you encounter potential scams, it is essential to report them. You can alert the IRS and local authorities. Timely reporting can help prevent others from falling victim to these tricks.

Secure Your Personal Information

Be careful about sharing personal information. Use strong, unique passwords for your online accounts, and consider enabling two-factor authentication for added security during tax season.

Navigating Tax Season with Confidence

As the 2025 tax filing season begins, it's important to exercise caution to protect against tax scams. By staying informed, recognizing common scams, and properly securing your data, you can approach this tax season with assurance.

Don't let tax scams disrupt your financial stability. Educate yourself, report any suspicious activity, and contribute to a safer tax environment for yourself and others. By remaining aware and sharing information about potential scams, taxpayers can collectively resist fraudulent tactics, ensuring a smoother experience during tax season for everyone. If you’d like more information, feel free to reach out to The Center for Financial, Legal, and Tax Planning, Inc. at (618) 997-3436.