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January 23rd, 2026
According to fraud expert Amy Nofziger, scammers take advantage of people’s stress during tax season and use manipulative tactics to dupe them out of money. She warns that impostors posing as the IRS will contact people via phone, text message, or email, claiming back taxes are owed or that there is a problem with a tax return. The impostors will then request payment in the form of prepaid gift cards or even cryptocurrency.
Another way scammers operate during peak tax season is through fraudulent tax return services. Tiffany Maddox, who trusted a company to prepare her taxes, ended up losing about one-third of her refund to the company. A few weeks after filing, she received a message from someone who claimed they were scammed out of $2,000 by the same company. Maddox cautions others not to trust ads they see on Facebook and to do their taxes in person. Unscrupulous tax return services could also leave people open to liability with errors or false information, and in some cases, they can even deposit your refund in their account.
Nofziger also warns about the risk of check washing, where criminals steal paper checks and rewrite them for higher dollar amounts. To avoid this, she advises people not to leave paper checks sitting in their mailboxes for too long. Tax experts also recommend that if the IRS needs to get in touch, it will most likely contact you by mail first. If you receive a call, text, or email claiming to be from the IRS as your first contact, it could be a scam. Lastly, experts emphasize the importance of checking the credentials of anyone you give your information to and paying digitally when possible.
Emotional Toll of IRS Impostor Scams
Scams and fraudulent activities during tax season can have a significant emotional toll on victims. For starters, many individuals who fall prey to these scams experience feelings of shame, embarrassment, and self-blame for being deceived. They may feel like they should have known better or that they were somehow responsible for their victimization. These emotions can lead to a sense of isolation, making it challenging for victims to seek help or report the incident to authorities.
In addition to these feelings of shame and self-blame, victims may also experience financial stress and anxiety. Losing money to a scam or fraudulent tax service can be financially devastating, especially for those who were already struggling financially. The loss of funds can lead to feelings of fear and uncertainty about how to make ends meet, pay bills, and cover essential expenses. Victims may also experience a sense of betrayal, particularly if they trusted a tax return service or received a call from someone posing as an IRS agent.
Victims may also experience a loss of trust in others, including family members, friends, and authority figures. Being deceived can lead to feelings of mistrust and suspicion, making it challenging for victims to feel comfortable seeking help or receiving advice from others. This sense of mistrust can also extend to other areas of their lives, making it difficult for victims to form new relationships or trust others with personal information or financial matters. Overall, the emotional toll of falling victim to a tax scam or fraud can be significant, leading to feelings of shame, financial stress, and a loss of trust in others.
The Rise of IRS Impostor Scams and How to Avoid Them
The rise of IRS impostor scams has become a significant concern during tax season. To avoid falling victim to these scams, it’s crucial to stay vigilant and know how to recognize the signs of fraud. As fraud expert Amy Nofziger from AARP advises, “People should be on the lookout for these scams, because the impostors know that we’re stressed and that it’s going to be easy manipulating us.” One way to recognize a scam is to pay close attention to the initial contact method. The IRS typically contacts taxpayers by mail, so if you receive a phone call, text message, or email as your first contact, it’s likely a scam.
It’s also essential to be cautious when hiring someone to prepare your taxes. Scammers may pose as legitimate tax preparers, leading to potential liability issues or even the deposit of your refund into their account. As Tiffany Maddox, an Alabama resident who fell victim to preparer scams, warns, “Don’t trust ads you see on Facebook, and go in person when doing your taxes.”
Warning Signs of Fraudulent Tax Return Services and How to Protect Yourself
There are several warning signs to look out for when selecting a tax return service. One of the most obvious is when a company claims they can guarantee a certain refund amount or promise to reduce your taxes owed. This is often a red flag that they are not legitimate and may engage in unethical practices. Additionally, be wary of tax return services that charge a fee based on the size of your refund or offer to deposit your refund into their account.
To protect yourself from fraudulent tax return services, it’s important to do your research before choosing a provider. Look for reviews and ratings online, and check their credentials with the IRS or other relevant organizations. You can also ask for referrals from friends and family or seek recommendations from reputable financial advisors.
Another way to safeguard your personal information and avoid tax return scams is to file your taxes digitally using a secure website or software program. This can help to prevent identity theft and reduce the risk of errors or fraudulent filings. Finally, be sure to carefully review your tax return before submitting it and report any suspicious activity to the IRS or local law enforcement.
Why The IRS Typically Contacts Taxpayers by Mail
According to tax experts, the IRS typically contacts taxpayers by mail first if there is an issue with their tax returns or payments. This is because the agency wants to verify the identity of the taxpayer and make sure the communication is legitimate. The IRS will not ask for personal information like social security numbers or credit card details over the phone, email, or text message.
Therefore, if someone claims to be from the IRS and contacts you through these methods, it is likely a scam. It’s important to be wary of any unsolicited communication from the IRS and to verify the legitimacy of the message by contacting the agency directly.
Tips for Safely and Securely Preparing and Submitting your Tax Return
Here are some tips for safely and securely preparing and submitting your tax return:
- Choose a reputable tax preparer: Do your research and select a tax preparer with a good reputation to avoid falling prey to preparer scams.
- Verify preparer credentials: Ensure that the tax preparer you choose is authorized to practice by checking their credentials.
- Avoid paying with gift cards or cryptocurrency: Be wary of anyone who asks you to pay your taxes with prepaid gift cards or cryptocurrency.
- Don’t leave paper checks in your mailbox: To prevent check washing, don’t leave paper checks sitting in your mailbox for too long.
- Check the IRS website for tax-related updates: Keep an eye on the official IRS website for updates related to tax season and any potential scams.
- Verify the authenticity of all communication: Verify that any communication claiming to be from the IRS is legitimate, especially if it’s your first point of contact.
- Use a secure method to submit your tax return: When submitting your tax return, use a secure method to ensure the safety of your personal information.
- Keep records of all tax-related transactions: Keep a record of all transactions related to your tax return to help with any potential disputes or discrepancies.
By following these tips, you can help protect yourself from potential tax scams and ensure that your tax return is submitted safely and securely.
