Tax season isn’t just stressful — it’s the most dangerous time of year for your personal information. Every year from January through April, tax scams surge as criminals race to file fraudulent returns using stolen identities, send fake IRS communications to steal your data, and exploit the anxiety people feel around taxes to trick them into paying money they don’t owe.
The IRS receives millions of reports of tax-related identity theft and scams every year. And the criminals pulling these scams don’t need sophisticated hacking skills — they just need your personal information, most of which is freely available on data broker sites.
This guide covers every major tax scam you need to watch for, how criminals get the information to target you, and the steps to protect yourself before, during, and after tax season.
In this guide:
- Tax identity theft — how criminals steal your refund
- Fake IRS calls, texts, and emails
- Fraudulent tax preparer scams
- How data brokers fuel tax fraud
- How to protect yourself during tax season
Your tax data starts with your personal data: Criminals use your name, SSN, date of birth, and address to file fraudulent returns. Your name, date of birth, and address are listed on data broker sites right now. Run a free Optery scan to see how exposed you are.
Tax Identity Theft: How Criminals Steal Your Refund
The most financially devastating tax scam is tax identity theft — when a criminal files a tax return using your Social Security number and claims your refund before you do.
How it works: The criminal obtains your name, SSN, and date of birth (from dark web data breaches and data broker sites). They file a tax return early in the season — often in January, before most people have even received their W-2s. The return claims a refund, which is deposited into the criminal’s account or loaded onto a prepaid debit card. When you file your legitimate return weeks or months later, the IRS rejects it because a return was already filed with your SSN.
How you find out: You discover it when you file your return and the IRS rejects it — “a return has already been filed with this Social Security number.” Or you receive an IRS notice about a return you didn’t file, wages from an employer you don’t work for, or a refund you didn’t request.
How bad it gets: Resolving tax identity theft takes an average of 6-12 months. You have to file paper returns, submit an Identity Theft Affidavit (IRS Form 14039), provide documentation proving you’re the real taxpayer, and wait while the IRS investigates. Your legitimate refund is frozen during this process.
What criminals need: Just your name, SSN, and date of birth. Your name and date of birth are listed on hundreds of people search sites. Your SSN may have been exposed in a data breach — check if your SSN is on the dark web. Combined, these three data points are everything a criminal needs to steal your tax refund.
Fake IRS Communications
Beyond tax identity theft, criminals impersonate the IRS to steal money and personal information directly. Here are the most common fake IRS tax scams:
Fake IRS Phone Calls
You receive a call from someone claiming to be an IRS agent. They say you owe back taxes and will be arrested if you don’t pay immediately. They demand payment via wire transfer, gift cards, or cryptocurrency. The caller ID may even show an IRS phone number (spoofed).
How to spot it: The IRS never calls to demand immediate payment over the phone. The IRS never threatens arrest, deportation, or license revocation for unpaid taxes. The IRS never demands payment via gift cards, wire transfers, or cryptocurrency. If you actually owe taxes, the IRS sends a written notice by mail first — always.
Fake IRS Emails (Phishing)
Emails appearing to come from the IRS, claiming you’re due a refund, owe additional taxes, or need to verify your identity. The emails contain links to fake websites that capture your SSN, bank account information, or login credentials.
How to spot it: The IRS does not initiate contact via email. Ever. Any email claiming to be from the IRS is a scam. The IRS communicates through the U.S. mail. If you receive an email from “the IRS,” delete it.
Fake IRS Text Messages
“IRS: Your tax refund of $1,284 is pending. Verify your identity to receive payment.” These scam texts spike during tax season, targeting people expecting refunds.
How to spot it: Same rule — the IRS does not send text messages. Not about refunds, not about payments, not about anything. Any text claiming to be from the IRS is a scam.
Fake IRS Letters
Some scammers send physical letters that look like official IRS correspondence. These may demand payment to a specific address, direct you to a fake website, or request that you call a fake IRS phone number and provide personal information.
How to spot it: Legitimate IRS letters always include a notice number or letter number in the upper right corner. You can verify any IRS notice by calling the IRS directly at 1-800-829-1040 or checking your account at irs.gov. Never use the phone number or website listed in a suspicious letter — go to irs.gov directly.
Tax Preparer Fraud
Not all tax scams come from anonymous criminals. Some come from the person you’re paying to do your taxes:
Ghost preparers. Unlicensed individuals who prepare your return but refuse to sign it or include their Preparer Tax Identification Number (PTIN). By law, any paid preparer must sign the return and include their PTIN. If they won’t, they’re hiding something — possibly inflating your refund with fake deductions and taking a cut.
Refund fraud preparers. Dishonest preparers who inflate your deductions or claim credits you’re not entitled to — without telling you. You get a larger refund (and the preparer takes a bigger fee), but when the IRS catches the discrepancy, YOU are liable for the taxes, penalties, and interest. The preparer is long gone.
Data theft preparers. Some fraudulent tax preparers are after your information, not your business. They collect your SSN, W-2s, bank account details, and personal information under the guise of preparing your taxes — then use it for identity theft or sell it.
How to protect yourself: Only use tax preparers with a valid PTIN (check at irs.gov). Verify their credentials — CPAs, enrolled agents, and tax attorneys are held to professional standards. Never sign a blank return. Review the return before it’s filed. Never allow your refund to be deposited into the preparer’s bank account.
How Data Brokers Fuel Tax Season Scams
Here’s why tax scams are getting more targeted and effective: data brokers provide criminals with the building blocks for tax fraud.
Name + date of birth + address = half the equation. To file a fraudulent tax return, criminals need your name, SSN, and date of birth. Data broker sites freely provide two of those three — your name and date of birth. Your address (also on data broker sites) helps them pass identity verification checks.
SSNs come from breaches. With billions of records exposed in data breaches over the past decade, your SSN is likely floating around on the dark web. Combined with your name and date of birth from data broker sites, a criminal has everything needed for tax identity theft.
Targeted IRS impersonation. When a scammer calls you pretending to be the IRS and knows your full name, address, and the last four digits of your SSN, the call feels real. Those details come from data broker sites and breach databases. Without them, the scammer is just a random voice making empty threats.
Family targeting. Data broker sites list your family members by name. Scammers use this to target multiple family members — filing fraudulent returns for you, your spouse, and your children (child tax identity theft is particularly insidious because it often goes undetected for years).
Removing your personal information from data broker sites doesn’t eliminate your SSN from breach databases — but it removes the name, date of birth, address, and family connections that make that SSN actionable for tax fraud.
Run a free Optery scan to see which data broker sites currently have your personal information listed.
How to Protect Yourself During Tax Season
Here’s your complete tax scam protection plan:
Step 1: File Early
The single most effective defense against tax identity theft is filing your return as early as possible. If you file first, a criminal can’t file a fraudulent return with your SSN — the IRS will reject theirs. Don’t wait until April. File as soon as you have all your tax documents.
Step 2: Get an IRS Identity Protection PIN
The IRS offers a free Identity Protection PIN (IP PIN) — a six-digit number that must be included on your tax return to verify your identity. Even if a criminal has your SSN, they can’t file a return without this PIN.
Apply for an IP PIN at irs.gov/ip-pin. You’ll need to verify your identity through the IRS’s online process. A new PIN is issued each year. This is one of the strongest protections against tax identity theft available.
Step 3: Remove Your Data from Data Broker Sites
Your name, date of birth, address, and family members on data broker sites provide the context criminals need to turn a stolen SSN into a successful tax fraud. Remove this information to break the chain.
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Step 4: Freeze Your Credit
Freeze your credit with all three bureaus. While a credit freeze doesn’t directly prevent tax identity theft, it prevents criminals from using your stolen tax information to open credit accounts in your name — a common follow-up crime after tax fraud.
Step 5: Secure Your Tax Documents
Use a secure method to file. If filing electronically, use reputable tax software or a credentialed tax preparer. If filing by mail, send from a USPS post office — not your home mailbox — and consider using certified mail.
Protect physical documents. Store W-2s, 1099s, and prior tax returns in a secure location. Shred any tax-related documents you no longer need rather than throwing them away.
Don’t email tax documents. Never send W-2s, SSNs, or tax returns via unencrypted email. If your tax preparer requests documents, use their secure portal — not regular email.
Step 6: Know the IRS Communication Rules
Memorize these rules and you’ll never fall for a fake IRS scam:
The IRS does NOT call you to demand immediate payment. The IRS does NOT send text messages. The IRS does NOT send emails to initiate contact. The IRS does NOT threaten arrest, deportation, or license revocation. The IRS does NOT demand payment via gift cards, wire transfers, or cryptocurrency.
The IRS DOES send written notices through the U.S. mail. The IRS DOES allow you to verify any notice by calling 1-800-829-1040. The IRS DOES give you time to respond before taking action. The IRS DOES accept payment through official channels at irs.gov/payments.
Step 7: Protect Your Children’s SSNs
Child tax identity theft is growing because children’s SSNs have clean records and the theft often goes undetected until the child is old enough to file their own return — sometimes 16-18 years later.
File your children as dependents early — this prevents someone else from claiming them. Consider getting an IP PIN for each of your children. Freeze your children’s credit with all three bureaus. Protect your children’s personal information online by removing family details from data broker sites.
What to Do If You’re a Victim of Tax Identity Theft
If your tax return is rejected because someone else already filed with your SSN:
1. File IRS Form 14039 (Identity Theft Affidavit). This notifies the IRS that you’re a victim of tax identity theft. Include it with your paper tax return.
2. File your return on paper. You won’t be able to e-file since a return was already filed with your SSN. Mail your paper return with Form 14039 to the IRS.
3. Contact the IRS Identity Protection Unit. Call 1-800-908-4490 to report tax identity theft and get guidance on next steps.
4. Freeze your credit immediately. The criminal who has your SSN may attempt other forms of identity theft beyond tax fraud.
5. File a report at IdentityTheft.gov. The FTC’s IdentityTheft.gov creates a personalized recovery plan.
6. Remove your data from broker sites. Limit the personal information available about you that could be used for additional fraud. Run a free Optery scan to see your exposure, then remove it using Optery or Incogni.
7. Get an IP PIN for next year. After resolving tax identity theft, request an IP PIN at irs.gov/ip-pin to prevent it from happening again.
Be patient. Tax identity theft resolution typically takes 6-12 months. Your legitimate refund will be delayed but you will receive it once the IRS resolves the case.
Protect Yourself Before Tax Season Hits
Tax scams are most effective when you’re caught off guard. The best time to prepare is before tax season — not after you’ve already been targeted.
- Get an IRS IP PIN at irs.gov/ip-pin — the strongest defense against tax identity theft (free)
- File early — beat the criminals to the IRS
- Run a free Optery scan — see what personal information is available to tax scammers on data broker sites
- Remove your data from broker sites — use Optery or Incogni to remove the name, DOB, and address that make stolen SSNs actionable
- Freeze your credit — prevent follow-up identity theft after tax fraud
- Remember the IRS rules — no calls, no texts, no emails, no gift cards. Ever.
Tax season should be about getting your refund — not losing your identity. Lock it down before the scammers come knocking.
Frequently Asked Questions
Does the IRS call you on the phone?
The IRS does not call taxpayers to demand immediate payment or threaten arrest. If the IRS needs to contact you, they send a written notice by U.S. mail first. Any phone call claiming to be the IRS that demands immediate payment or threatens legal action is a scam.
Does the IRS send text messages or emails?
No. The IRS does not initiate contact by text message or email. Any text or email claiming to be from the IRS is a scam. The IRS communicates through U.S. mail and, in some cases, through your account at irs.gov.
What is an IRS IP PIN and how do I get one?
An Identity Protection PIN is a six-digit number issued by the IRS that must be included on your tax return. It prevents anyone else from filing a return with your SSN. Apply for free at irs.gov/ip-pin. A new PIN is issued each year.
How do I know if someone filed a tax return with my SSN?
The most common sign is your e-filed return being rejected because a return was already filed with your SSN. You may also receive an IRS notice about a return you didn’t file or income you didn’t earn. If this happens, file Form 14039 and call 1-800-908-4490.
How do data brokers contribute to tax scams?
Data brokers publicly list your name, date of birth, address, and family members. Combined with a stolen SSN (from data breaches), this gives criminals everything needed for tax identity theft. Removing your data from broker sites makes stolen SSNs less useful. Run a free Optery scan to see your exposure.
Can I prevent tax identity theft?
The most effective preventions are filing early (before criminals can), getting an IRS IP PIN, and removing your personal information from data broker sites using Optery or Incogni. Also freeze your credit to prevent follow-up identity theft.
Should I freeze my children’s credit for tax protection?
Yes. Child tax identity theft is growing because children’s SSNs have clean records and the theft often goes undetected for years. Freeze your children’s credit with all three bureaus and file them as dependents on your return as early as possible.
What payment methods does the IRS actually accept?
The IRS accepts payments through irs.gov/payments (Direct Pay, credit/debit card, EFTPS), by check or money order mailed to the IRS, and through IRS-approved payment plans. The IRS NEVER accepts gift cards, wire transfers, cryptocurrency, or prepaid debit cards.
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