As tax filing season begins, scammers are ramping up efforts to steal taxpayers’ personal information through increasingly sophisticated schemes. Below, we discuss the latest scam, what to look out for in general, and what to do if you suspect something malicious.

New Scam of the Season

The U.S. Treasury Inspector General for Tax Administration (TIGTA) recently issued an alert about a prevalent scam involving Economic Impact Payments.

In this scheme, taxpayers receive texts claiming they’re eligible for a $1,400 Economic Impact Payment, requesting personal information and bank details for deposit. While the IRS is indeed processing some legitimate Recovery Rebate Credit payments from 2021 tax returns, they will never request personal information via text or social media. These legitimate payments will be automatically distributed by late January 2025, either through direct deposit or paper check, with official notification letters sent separately.

Detecting Scam in General

The cybersecurity firm Guardio reports a 77 percent increase in IRS-related spam messages, highlighting how scammers exploit taxpayers’ fears of making mistakes on their returns. Common manipulation tactics include urgent messages claiming:

• Tax return errors requiring immediate action to avoid penalties
• Unexpected tax refund eligibility requiring verification
• Account flags demanding immediate information verification to prevent legal action

These fraudulent messages typically contain malicious links designed to steal sensitive information like Social Security numbers, banking details, and payment credentials. They often masquerade as official IRS forms or legitimate tax advisory companies.

Key Warning Signs of Tax Scams:

• Requests for sensitive personal or financial information
• Links to suspicious websites (legitimate government sites end in .gov)
• Misspellings, grammatical errors, or inconsistent formatting
• Fuzzy or distorted official logos
• Initial contact via email, phone, text, or social media instead of postal mail

What to Do if You Receive a Suspicious Message

If you receive a suspicious message, don’t engage with it. Never click links or provide personal information to unknown sources. Report potential fraud by forwarding the message to phishing@irs.gov or filing a report with TIGTA. If you’re uncertain about correspondence claiming to be from the IRS, verify it by calling 800-829-1040 or visiting IRS.gov. Your online IRS account will display any official notices mailed to you.

If you’ve accidentally engaged with a scam:

1. Immediately close any suspicious website tabs
2. Change passwords for potentially compromised accounts
3. Contact your bank or credit card provider to monitor for fraudulent activity
4. Report the incident to the IRS and file an identity theft report with the Federal Trade Commission
5. Consider notifying local law enforcement

When searching for tax-related information online, only use official sources like IRS.gov or the official IRS app. Be wary of sponsored ads and search results that might lead to fraudulent websites. Consider bookmarking official sites for quick, secure access.

Conclusion

Remember, the IRS will never initiate contact through email, text, or social media. When in doubt, assume it’s a scam and verify through official channels. Keeping your personal information secure requires constant vigilance, especially during tax season when scammers are most active.