Recognize tax scams to better protect your information

Common tax scams like telephone scams, phony tax preparers and phishing emails or websites can cost you.

How Can I Protect My Identity This Tax Season?

During tax season internet scammers seek every opportunity to trick people out of their refunds, as well as their personal information.  It is important to be alert for phishing scams that appear to be messages from the Internal Revenue Service (IRS).

Scammers use email, websites, and even social media to get taxpayers to share personal and financial information, which they can then use to steal identities. In an effort to either frighten or entice users, fraudulent messages typically threaten a tax audit or offer a tax refund.

The IRS does not send unsolicited emails or texts to taxpayers to request financial account security information, such as PIN numbers. They also will not discuss tax account information with taxpayers via email, or use email to request sensitive financial and personal information.

What Are Signs of a Tax Scam?

Scams may appear legitimate because of language used and valid personal information included. Some scam documents or emails may even use the IRS logo. But the warning signs you should watch for are: 

  • Requests for personal or financial information, such as your Social Security number and bank or credit card account numbers.
  • Tempting offers that might persuade you to click on links or respond to messages.
  • Threats that suggest consequences for not responding to the email.
  • Incorrect grammar, spelling, or phrasing, especially when referencing the IRS or other government agencies.
  • Links to inaccurate URLs. 
    • Rather than relying on links listed in the message, manually type the URL for the official IRS website directly into your browser address bar. This will help you reveal if there really are issues with your taxes, and how to deal with those issues officially, if they exist.

Each year, the Internal Revenue Service (IRS) releases a "Dirty Dozen" list of common tax scams.  The scams that rank highest on that list are:

  • Phishing scams with emails or websites.
  • Phone call tax scams.
  • People pretending to be qualified to prepare and submit your tax returns (i.e., phony tax prep people).

Protect your identity and your money by knowing how to recognize and report these scams.

What Are Phishing Scams With Emails Or Websites?

Scammers may use well-crafted, fake versions of tax-related websites and emails that bear the IRS logo. Using the logo lulls users into a false sense of security: it makes users believe the site is official. They do this to steal personal information, similar to how phony e-cards and sale emails are used during the holidays.

Red Flags 

  • Emails claiming to be from the IRS.
  • Websites that ask for personal or financial information in order to receive a refund.

Protect Yourself 

If you receive a phishing email regarding your tax refund:

  • Do not reply.
  • Do not open any attachments or click any links. 
  • Let the IRS know you have received a suspicious message.

What Are Tax Scam Phone Calls?

Tax scam artists call you, posing as IRS employees or law enforcement agents. By pretending to be government officials, they trick people into believing the call is legitimate. To further solidify the validity of their call (meaning, to give you a false sense of security) these callers use common names and false IRS badge numbers. They also may be able to recite the last four digits of your Social Security number. Be wary. This is information they can easily get through a Google search, or even make up. 

Red Flags 

  • Requests for you to tell them personal information to verify your account or to receive assistance, even though they called you and they should have that information in full.
  • Demands for immediate payment using a specific payment method, such as a prepaid debit card, gift card, or wire transfer.

Protect Yourself 

  • Never give out any identifying information over the phone. 
  • Hang up and contact the IRS to verify issues with your return or refund. 
  • Report the tax scam to the Treasury Inspector General for Tax Administration if you believe you have been a victim of an IRS Impersonation Scam.

How Can I Identify Phony Tax Return Preparers?

While most tax preparation consultants file their clients' returns honestly, some will commit tax fraud scams or identity theft. According to the IRS, “thousands of people have lost millions of dollars and their personal information to tax scams.” You are responsible for your tax return, even if you didn't prepare it. So do your research before letting someone else file for you.

Red Flags

The person who prepares your tax return doesn’t:

  • Offer you electronic filing.
  • Use your W-2 to file your return.
  • Sign your return.
  • Enter their Preparer Tax Identification Numbers (PTINs) when filing your return.

Protect Yourself

Before selecting a tax preparation consultant:

  • Check with the Better Business Bureau about them.
  • Review the status of their license.
  • Make sure they have a PTIN.
  • Avoid preparers who base their service fees on your refund amount.

Visit the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to locate a qualified local tax preparer.

How Can I Report IRS Tax Scams?

If you receive an online message you think is a scam, the IRS suggests the following steps:

  • Do not open any attachments or click any links, which could lead you to a fake IRS website or cause malware to download onto your computer.
  • Ignore messages that offer a refund. Instead, go to the IRS's Where's My Refund? site to determine if you are actually receiving a refund.
  • Report the fraud by forwarding the message or web address to phishing@irs.gov.
  • Delete the message.

The IRS also provides additional information about precautions to take and how to report fraud, should you receive phony IRS messages.

What is Identify Theft?

Identity theft occurs when your personal information such as name, driver’s license number, or Social Security number is used without your consent. Occasionally this information can be used to commit a crime or fraud.

Red Flags

  • Without your knowledge, charges are made on existing accounts or new accounts are opened in your name.

Protect Yourself

  • Shred any mail that contains personal information.
  • Review your credit report as often as you can.
  • Sign up for credit report monitoring and alerts through your bank or credit card provider, if that service is offered.

Discover more cyber safety tips and ways to protect your identity while browsing online.

State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates) is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites hyperlinked from this page. State Farm has no discretion to alter, update, or control the content on the hyperlinked, third party site. Access to third party sites is at the user's own risk, is being provided for informational purposes only and is not a solicitation to buy or sell any of the products which may be referenced on such third party sites.

Neither State Farm® nor its agents provide tax or legal advice.


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