Tax season can feel like a race against time, but the real threat isn’t just missing the deadline—it’s falling victim to tax scams. Every year, fraudsters refine their schemes, preying on unsuspecting taxpayers with fake IRS calls, deceptive emails, and too-good-to-be-true refund offers. With 2025 bringing new challenges, staying ahead of scammers is more critical than ever. A better understanding of their tactics and proactive action can help you safeguard your identity, finances, and peace of mind. Here are ten crucial tips for avoiding tax scams.
1 Know the Common Tax Scams
Fraudsters often masquerade as the IRS, tax professionals, or financial institutions to steal your information. Be on the lookout for:
- Phishing emails pretending to be the IRS or a tax preparer.
- Phone scams with forceful callers alarming you with the threat of legal action or demand of immediate payment.
- Fake tax preparers who promise big refunds but steal your information.
- Stimulus or refund scams asking you to verify details via unofficial links.
2 Verify All IRS Communications
The IRS will never:
- Call and demand instant payment over the phone.
- Threaten law enforcement action for unpaid taxes.
- Ask for personal or financial details via email or text. If you receive a fishy communication, contact the IRS directly at www.irs.gov to confirm its legitimacy.
3 Use Secure Online Tax Services
When filing taxes online, ensure the platform:
- Uses encrypted connections (look for “https” in the URL).
- Requires multi-factor authentication (MFA).
- Comes from a trusted provider, such as the IRS Free File program or reputable tax preparation software.
4 Beware of “Too Good to Be True” Refund Promises
Fraudulent tax preparers lure victims with inflated refund claims. Red flags include:
- Preparers who base fees on a percentage of your refund.
- Claims that you qualify for credits or deductions you’ve never heard of.
- Requests to sign blank or incomplete tax forms. Always work with certified tax professionals and review your return before filing.
5 Protect Your Personal Information
Keep sensitive tax documents secure:
- Shred old tax returns and financial statements.
- Store paper copies in a locked, fireproof safe.
- Use strong, unique passwords for online tax accounts.
- Avoid sharing Social Security numbers or banking details over email or phone.
6 File Early to Prevent Fraud
Scammers may try to file a tax return in your name to claim a refund fraudulently. Filing early minimizes the chance of someone else using your identity before you do. When you file early, the IRS processes your legitimate return first, making it much harder for fraudsters to submit a fake return in your name. Additionally, early filers have more time to address potential issues, such as identity theft warnings or IRS notifications regarding duplicate filings.
7 Monitor Your Tax Account
Regularly check your IRS account at www.irs.gov to:
- Confirm the status of your tax return.
- Verify that no unauthorized tax filings have occurred.
- Update personal and contact information as needed.
8 Use Direct Deposit for Refunds
Direct deposit is the safest way to receive your tax refund. Scammers often intercept mailed refund checks. By opting for direct deposit, you ensure that your refund goes straight into your credit union account, reducing the risk of mail theft, forgery, or fraudulent check cashing. Additionally, direct deposit is faster, meaning you receive your refund more quickly and securely than waiting for a paper check to arrive.
9 Report Suspicious Activity
If you suspect a scam:
- Report IRS-related scams to phishing@irs.gov.
- Notify the Federal Trade Commission (FTC) at www.identitytheft.gov.
- Contact your financial institution immediately if you’ve provided personal account details.
10 Partner with a Trusted Financial Institution
Choice One Community Credit Union offers secure financial services and fraud prevention resources to help safeguard your assets. You can rely on us for sound advice if you’re unsure about a tax-related message or need guidance.
Final Thoughts on Avoiding Tax Scams
Tax scams are an unfortunate reality, but by staying informed and cautious, you can protect yourself and your finances. Follow these ten tips to secure your personal and financial information during the 2025 tax season. Choice One Community Credit Union is here to help if you need further guidance. Stay safe, file smart, and get don’t scammed! Remember, caution is your best defense.
Read more helpful tips like these in our blog, “Reducing Tax Season Stress: A Step-By-Step Guide.”