Tax season has always been a time of high stress and even higher stakes. But as we move into 2026, the tax filing landscape is changing. We’re seeing a shift where traditional “IRS impersonation” phone calls are being replaced, or joined by highly sophisticated AI-generated schemes and misinformation spread through viral social media clips. Avoiding tax scams is essential.
At Choice One, we believe that keeping informed is your best line of defense. Scammers count on two things: your desire to get a bigger refund and your fear of getting in trouble with the government. Through understanding the “why” and “how” behind current tax scams, you can navigate this season with confidence.
The Evolution of the Tax Scam: What to Watch for in 2026
For years, the “Dirty Dozen” list from the IRS has warned us about the same old tricks. However, 2026 has brought some unique challenges that every consumer – from college students filing for the first time to retirees managing their nest eggs – needs to recognize.
AI-Powered “Vishing” and Deepfakes
Artificial intelligence has made it terrifyingly easy for con artists to clone voices. You might receive a voicemail that sounds exactly like a formal government official or even a local tax professional you’ve used in the past. These “vishing” (voice phishing) attacks are designed to create immediate panic, claiming there is a “criminal case” registered against you for tax evasion. Tap to read more about the dangers of deepfake scams and what to watch for.
The Social Media “Refund Secret” Trap
If you spend any time on TikTok or Instagram, you’ve likely seen “tax influencers” promising massive refunds through obscure credits like the Fuel Tax Credit or the “Self-Employment Tax Credit.” In 2026, the IRS is under high alert for these particular claims. Most of these “secrets” are actually just blatant fraud. If you follow this bad advice, you aren’t just getting a big refund; you’re signing up for a potential audit and heavy penalties.
“Ghost” Preparers and Shady Professionals
A “ghost” preparer is someone who gets paid to do your taxes but refuses to sign the return or provide a Preparer Tax Identification Number (PTIN). In 2026, we’ve seen an uptick in these operators setting up “pop-up” shops online. They guarantee a bigger refund than anyone else, but they disappear the moment the IRS sends you a letter questioning the numbers. Being able to spot a shady tax preparer is a great defense in avoiding tax scams.
The Crypto Reporting Confusion
With new 2026 reporting requirements for digital assets (like the Form 1099-DA), scammers are preying on the general confusion surrounding crypto taxes. They may contact you claiming you’ve failed to report a specific transaction and demand a “compliance fee” paid – ironically – in cryptocurrency. Read more about reporting digital assets on the IRS website.
10 Tips to Avoiding Tax Scams
Knowing the trends is half the battle; the other half is having a solid plan. Here are 10 actionable tips to keep your identity and your money safe this year.
1 Know How the IRS Actually Reaches Out
Despite what that urgent text message says, the IRS initiates almost all contact through the U.S. Postal Service. They will not send you an initial notice via email, text, or social media DM. If you get a “DM” from an IRS agent, it is a scam 100% of the time. If you do receive a letter, you can verify it’s actually from the IRS.
2 Beware of “Instant” Payment Demands
A legitimate government agency will never demand that you pay your taxes using a gift card, a wire transfer, or a cryptocurrency deposit. These methods are preferred by scammers because they are nearly impossible to trace or reverse. If someone insists on a specific, non-traditional payment method, hang up.
3 Verify Your Tax Preparer’s Credentials
Don’t just take someone’s word for it. If you’re hiring a professional, ensure they have a PTIN. The IRS requires that anyone who prepares or assists in preparing federal tax returns for compensation must have a valid 2026 PTIN before preparing returns. You can actually use the IRS Directory of Federal Tax Return Preparers to confirm their credentials. If they aren’t on the list or refuse to sign your return, walk away. Tap to search to see if your tax preparer has a PTIN. This is essential in avoiding tax scams.
4 Never Sign a Blank Return
It might seem like a time-saver if your preparer says, “Just sign the bottom, and I’ll fill in the details later,” but this is a massive red flag. You are legally responsible for everything in that document. A preparer could exaggerate your income or claim fake deductions to increase their fee, leaving you to face the consequences.
5 Be Skeptical of “Refund-Based” Fees
Reputable tax professionals typically charge a flat fee or an hourly rate based on the complexity of your return. If a preparer’s fee is based on a percentage of your refund, they have a financial incentive to “cook the books.” This is one of the most common ways people get roped into tax fraud without realizing it.
6 Protect Your Social Security Number (SSN) & Personal Information
Treat your SSN like the keys to your house. Don’t carry your card in your wallet and never give it out to someone who calls you unexpectedly. Scammers only need your name and SSN to file a fraudulent return in your name and steal your refund before you even get a chance to file. Keep your sensitive tax information secure. Shred old tax returns and financial statements, use strong passwords for online tax accounts, and avoid sharing information.
7 Secure Your Online Presence
If you file your own taxes online, make sure you use a secure, private Wi-Fi connection. Never use public Wi-Fi at a coffee shop or library to file a tax return or when providing any sensitive information. Additionally, enable Multi-Factor Authentication (MFA) on your tax software and your email accounts. That extra step of entering a code from your phone can stop a hacker in their tracks. Avoiding tax scams through online security is a great line of defense.
8 Use an IRS Identity Protection PIN (IP PIN)
The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. In 2026, the IRS will have made it easier for anyone to opt in to this program. It acts like a secondary password for your identity, guaranteeing only you can file your return. Tap to learn more about getting an ID PIN.
9 Don’t Click the Link
Phishing and “smishing” (SMS phishing) are still incredibly effective. You might get an email that looks exactly like the IRS website, claiming your refund is “pending” and that you just need to click a link to verify your credit union details. Instead of clicking, go directly to IRS.gov and use the “Where’s My Refund?” tool.
10 Listen to Your Gut is Essential in Avoiding Tax Scams
Scammers thrive on generating a sense of “false urgency.” They want you to feel like you have to act now, or the police will be at your door. The real IRS gives you the right to ask questions and appeal any amount they say you owe. If a situation feels high-pressure or “too good to be true,” it almost certainly is.
A Real-World Scenario: The “Late-Night” Call
Imagine it’s 8:00 PM on a Tuesday. Your phone rings, and the caller ID says “Internal Revenue Service.” A stern-sounding voice tells you that an audit discovered a $2,500 discrepancy in your 2024 filing. They say that if you don’t pay a $500 “settlement” tonight via a digital payment app, they will issue a warrant for your arrest.
In this moment, the pressure is high. But remember our tips to avoiding tax scams:
- The IRS doesn’t call out of the blue.
- They don’t threaten arrest over the phone.
- They don’t take payments via apps or gift cards.
The best thing you can do is to hang up immediately. If you’re genuinely worried, log in to your official IRS Online Account or call the verified IRS number on their official website to check your status.
Avoiding Tax Scams: Stay one step ahead
The dangers of tax scams aren’t just about losing a few hundred dollars; they can lead to years of identity theft headaches and legal problems with the Department of the Treasury. By staying knowledgeable and verifying every piece of communication you receive, you take the power back from the fraudsters. Following these tips will help in avoiding tax scams.
Common tax scams rely on the fact that most of us find taxes confusing. But you don’t have to be a tax expert to be safe, you just have to be a skeptic when it comes to unsolicited advice and high-pressure demands.
Choice One focuses on providing the information and tips you need to protect yourself from tax scams and other fraud. Whether it’s securing your accounts or staying up to date on the latest security trends, we are here to be your trusted partner in financial safety. If you ever suspect your financial information has been compromised, contact us immediately. Together, we can make the 2026 tax season a safe one.
Read more tax time tips in our blog, “Reducing Tax Stress: A Step-By-Step Guide.”
Read more about fraud in our blog, “Fraud Alert: 7 Scams Hitting NEPA in 2026 and How to Shut Them Down.”