New Congressional scam alert issued for IRS fraud ahead of Tax Day

Protect Your Money: How to Spot and Stop Tax Season Scams

Tax Day is a critical time for every American, marking the annual deadline for filing taxes. However, it’s also a peak season for fraudsters and criminals looking to exploit unsuspecting individuals. As the tax filing deadline approaches, a stern warning has been issued by the U.S. Congressional Joint Economic Committee: be on high alert for tax scams. This warning is not just a formality; it's a crucial heads-up for millions of taxpayers, as the threat of tax scams is more pervasive than ever.

The urgency of this message is underscored by alarming statistics. Recent research from McAfee, conducted in March 2026, revealed a startling truth: nearly one in four Americans has unfortunately fallen victim to tax season scams. This high percentage highlights how sophisticated and widespread these fraudulent schemes have become, affecting a significant portion of the population and causing considerable financial and emotional distress.

The Alarming Rise of Tax Scams: A Deeper Look at the Numbers

The scam alert from the Joint Economic Committee, which Mashable reviewed, paints a grim picture of the current threat landscape. The numbers are not just statistics; they represent real people losing their hard-earned money and sensitive personal information. During fiscal year 2025 alone, the IRS reported identifying more than 600 social media impersonators posing as official IRS accounts. This proliferation of fake profiles makes it incredibly difficult for the average user to distinguish legitimate information from malicious attempts to gather data or spread false instructions.

The problem extends far beyond social media. Phone calls are another major vector for tax fraud. According to Nomorobo, a popular spam blocker application, there was a staggering 400 percent increase in fraudulent calls claiming to be from the IRS between January and February of this year alone. This exponential rise suggests a concentrated effort by scammers during the initial stages of tax season, overwhelming individuals with aggressive and often threatening phone calls designed to instill panic and coerce immediate action.

Online, the situation is equally dire. McAfee's analysis revealed an astonishing trend: 43 new fake tax websites were identified every single day between September 2025 and February 2026. These websites are meticulously crafted to look like official government portals or legitimate tax preparation services. Their primary goal is to trick users into entering personal information, financial details, or even making payments directly to the scammers, often leading to identity theft or direct financial loss.

These numbers collectively demonstrate a multi-pronged attack strategy by cybercriminals during tax season. They leverage every available communication channel – social media, phone, and the web – to maximize their reach and increase their chances of success. The sheer volume and variety of these scams make it imperative for every taxpayer to be informed, vigilant, and proactive in protecting themselves.

Seniors: A Primary Target for Tax Fraud

One of the most concerning aspects of the recent scam alert is the specific targeting of older adults. Joint Economic Committee Chairman and Arizona Rep. David Schweikert emphasized this point in a press release shared with Mashable, stating, "Criminal enterprises are exploiting tax season to target Americans, including seniors." This is a heartbreaking reality, as older individuals often represent a vulnerable demographic that scammers ruthlessly pursue.

Data from the Federal Trade Commission (FTC) in 2024 tragically reinforces this concern. Adults aged 70 and older consistently lost more money to fraud compared to younger adults. The median loss for seniors 80 and older was a shocking $1,650, while those aged 70-79 lost a median of $1,000. In stark contrast, younger age groups typically experienced median losses ranging from $189 to $691. This disparity is significant and highlights the severe financial impact these scams have on older populations.

Several factors contribute to seniors being disproportionately affected. They may be more trusting, less familiar with rapidly evolving digital threats, or more susceptible to high-pressure tactics due to fear of legal repercussions from supposed government agencies. Scammers often prey on these vulnerabilities, using elaborate stories that might involve threats of arrest, deportation, or property seizure if immediate payment or information is not provided. They create a sense of urgency and panic, making it difficult for seniors to think clearly or consult with family members or trusted advisors.

The emotional toll on seniors who fall victim to these scams is immense, often leading to feelings of shame, isolation, and a significant loss of financial security. Protecting older adults from these predatory schemes requires a collective effort from family members, caregivers, and community organizations to educate and empower them with the knowledge to identify and resist fraudulent attempts.

A United Front Against Fraud: Bipartisan Call to Vigilance

The importance of this warning is further amplified by the bipartisan nature of its issuance. Chairman Schweikert is joined in this critical alert by Ranking Member New Hampshire Sen. Maggie Hassan, Vice Chairman Missouri Sen. Eric Schmitt, and Senior House Democrat Virginia Rep. Don Beyer. This united front from across the political spectrum underscores the universal threat that tax scams pose to all Americans, regardless of their background.

Senator Hassan, in particular, shed light on a worrying trend: the enhancement of these fraudulent attacks by artificial intelligence (AI). She stated in the release, "As Americans file their taxes this month, scammers are deploying an onslaught of attacks — often enhanced by artificial intelligence — designed to steal people's money." AI tools can enable scammers to create more convincing fake documents, generate highly personalized phishing emails, and even mimic voices more effectively in phone calls, making it harder than ever to detect fraudulent activity. This advancement in scamming technology requires an equally advanced level of awareness and caution from the public.

Senator Hassan continued, "I encourage all taxpayers to review the tips in this bipartisan scams alert so that they can stay vigilant and protect their identities and accounts." This sentiment is at the heart of the committee's efforts: to arm taxpayers with the knowledge and tools necessary to defend themselves against increasingly sophisticated threats. The collaboration across parties sends a clear message that consumer protection against fraud is a shared priority, emphasizing the collective responsibility to educate and safeguard communities.

SEE ALSO: Why you shouldn't use ChatGPT to do your taxes

Essential Tips to Avoid IRS Impersonation Scams

The Joint Economic Committee has outlined several critical tips to help taxpayers recognize and avoid common scams where criminals pretend to be from the IRS. Understanding these guidelines is your first and best line of defense against becoming a victim.

1. Be Wary of Unsolicited Contact: How the IRS Really Communicates

• Phone Calls, Emails, or Social Media Outreach: The IRS operates under strict communication protocols. A key takeaway from the committee’s guidance is that the IRS will never message you on social media platforms, nor will they typically initiate contact via email or text message concerning your tax affairs. This is a fundamental rule that every taxpayer should remember. If you receive an unexpected message through these channels claiming to be from the IRS, it is almost certainly a scam.

  The agency’s standard procedure for initial contact regarding any official tax matter is almost always by mail. They will send a physical letter to your last known address. This official mail serves as a verifiable record and gives you time to review the information and respond appropriately without pressure. Any deviation from this mail-first approach, especially immediate demands for information or payment over the phone or email, should raise a significant red flag.

  Scammers often use sophisticated caller ID spoofing techniques to make it appear as though their calls are originating from official IRS phone numbers. They might also send emails that look incredibly authentic, complete with IRS logos and official-sounding language. Always question the legitimacy of any unsolicited contact, regardless of how convincing it seems. If you're unsure, hang up the phone or delete the email, and then independently verify the information through official channels.

2. Recognize Urgent Requests and Threats: The IRS Doesn't Operate This Way

• Urgent Requests or Threats: Scammers thrive on creating panic and a sense of extreme urgency. They often employ aggressive and threatening language, claiming you owe taxes immediately and that failure to pay will result in dire consequences. These threats can include immediate arrest, suspension of your driver's license, deportation, or the seizure of your property. The IRS will never threaten to call law enforcement to have you arrested for unpaid taxes. Nor will they demand that you pay immediately without allowing you to question or appeal the amount they claim you owe.

  Legitimate IRS communications will always provide you with options to understand and address your tax situation, including opportunities to appeal decisions or set up payment plans. They will not demand payment on the spot or pressure you into making hasty decisions. Any communication that uses intimidation or fear tactics is a clear indicator of a scam.

  Another tell-tale sign of a scam is the demand for payment through non-traditional methods. The agency will never ask for payment via gift cards (e.g., iTunes, Amazon, Google Play), wire transfers, or cryptocurrency. These methods are virtually untraceable and are favored by criminals because they offer anonymity. The IRS accepts payments through official channels like checks mailed to the IRS, direct debit from a bank account, or payments made through the IRS.gov website using a credit card, debit card, or electronic funds withdrawal. If you are instructed to pay using any method other than these official, traceable options, you are dealing with a scammer.

3. Verify All Communications Directly with the IRS

• Verify Any Communications: The most crucial step in protecting yourself is to verify any suspicious communications. You can confirm the legitimacy of any alleged IRS contact directly on the official IRS.gov website. Do not use phone numbers or links provided in a suspicious email, text message, or phone call, as these will likely lead you to a scammer’s fake portal.

  Instead, independently navigate to IRS.gov using your web browser or look up the official IRS contact number on their website. If you receive a letter, you can often find information about how to respond or who to call on the IRS website. If you're concerned about a phone call, simply hang up and call the official IRS phone number listed on their website to inquire about your tax account. Remember, the IRS will not call you demanding immediate payment or personal information without prior written notice.

  Being proactive in verifying communications is paramount. A quick search on IRS.gov or a call to their general inquiry line can save you from significant financial loss and identity theft. Don't let fear or urgency override your common sense; always take a moment to confirm the legitimacy of the contact.

4. Utilize an IRS-Issued Identity Protection PIN (IP PIN)

• Share an IRS-issued identity protection PIN: To add an extra layer of security against tax-related identity theft, the IRS offers an Identity Protection PIN (IP PIN). This is a unique, six-digit number that helps prevent criminals from filing a fraudulent tax return using your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). When you file your federal tax return, you must provide your IP PIN for it to be accepted by the IRS.

  The IP PIN acts as a secret key, known only to you and the IRS, that authenticates your tax return. If an IP PIN is required but not entered, or if an incorrect IP PIN is entered, the IRS will reject the electronic return or delay the processing of a paper return. This significantly hampers a scammer's ability to file a fake return in your name and claim a fraudulent refund.

  You can voluntarily request an IP PIN through the IRS website. It’s highly recommended for anyone who has been a victim of identity theft, or who wants to proactively protect themselves. Think of it as a strong password for your tax account; it’s a powerful tool in your defense against sophisticated identity theft attempts during tax season and beyond.

Safeguarding Against Non-IRS Tax Scams: Choosing Reputable Third-Party Services

Beyond direct IRS impersonations, taxpayers also need to exercise extreme caution when dealing with third-party tax services, which can range from legitimate preparers to outright fraudulent companies. The committee urges precaution, and these tips are crucial for protecting yourself when seeking assistance with your taxes.

1. Thoroughly Research Tax Preparation Firms

• Research Firms by Searching Them: Before entrusting your sensitive financial information to any tax preparation service, do your homework. Start by searching for the firm on reputable consumer review websites, such as the Better Business Bureau (BBB). The BBB provides ratings, customer reviews, and information about any complaints filed against a business. A low rating or numerous unresolved complaints should serve as a major warning sign.

  Additionally, perform general online searches for the company's name along with terms like "scam," "fraud," or "complaints." Look for reviews on multiple platforms and be wary if a company has very few reviews or only overwhelmingly positive, generic ones, as these can sometimes be fabricated. A legitimate business will typically have a consistent online presence and a mix of reviews.

  Be particularly skeptical of offers that seem "too good to be true." This often includes promises of unusually large refunds, exceptionally low fees for complex services, or guarantees of outcomes that are unrealistic. Legitimate tax preparers cannot guarantee specific refund amounts before reviewing all your financial details. If an offer sounds too enticing, it often is a tactic to lure you into a scam, where your money or identity will be compromised.

2. Verify the Preparer Tax Identification Number (PTIN)

• Verify the Service's PTIN: Any individual who prepares federal tax returns for payment must have a valid Preparer Tax Identification Number (PTIN) issued by the IRS. This is a non-negotiable requirement for professional tax preparers. If a tax service or individual preparer cannot or will not provide you with their PTIN, or if the number they provide cannot be verified, you should absolutely avoid them.

  You can verify a preparer's credentials, including their PTIN, and check if they are listed as an authorized e-file provider by visiting the official IRS.gov website. The IRS offers a directory of federal tax return preparers with credentials and qualifications. This tool is invaluable for ensuring that you are working with a legitimate and qualified professional. Choosing a preparer without a valid PTIN puts you at significant risk, as they may be unauthorized, unqualified, or even outright fraudulent.

3. Confirm the Identity of Third-Party Providers

• Verify the Provider: Scammers are increasingly sophisticated, often pretending to be legitimate third-party tax preparation companies or employees of well-known firms. They might create fake websites that closely mimic popular tax software or services, or send emails impersonating these companies.

  To protect yourself, always verify the provider by visiting their official website directly (typing the URL into your browser, rather than clicking a link from an email) and calling the listed phone number. Do not rely on contact information provided in unsolicited emails or calls. If you receive an email claiming to be from a tax software company you use, and it seems suspicious, go directly to their official website and log into your account there to check for any messages or alerts.

  Be wary of any unexpected communications, especially those asking for personal information or urgent action. Legitimate companies will rarely ask for sensitive details like your Social Security Number or banking information via email. Always use trusted, established communication methods and verify the identity of anyone requesting your data. If in doubt, err on the side of caution and reach out to the company through their officially published contact details.

What to Do If You Become a Victim of a Tax Scam

Even with the best precautions, it's possible to fall victim to a sophisticated scam. If you suspect you have been targeted by or have fallen victim to a tax scam, immediate action is crucial to minimize potential damage. Do not feel ashamed or embarrassed; scammers are highly skilled manipulators, and their tactics can be incredibly convincing.

• Report the Fraud: The first and most important step is to report the incident. You can report tax scams to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. This website provides a centralized way to report various types of fraud, and your report helps authorities track scam trends and potentially take action against perpetrators.

  Additionally, if the scam involved an IRS impersonator, you should also report it directly to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or via their website. If you received a suspicious email claiming to be from the IRS, forward it to [email protected]. If it was a text message, forward it to 7726 (SPAM).

• Protect Your Identity and Finances: If you've shared personal or financial information, take immediate steps to protect yourself. Contact your bank and credit card companies to alert them to potential fraudulent activity and monitor your accounts closely for any unauthorized transactions. Consider placing a fraud alert or a credit freeze on your credit reports with all three major credit bureaus (Equifax, Experian, and TransUnion) to prevent new accounts from being opened in your name.

  If your Social Security Number was compromised, you might also want to explore getting an IRS Identity Protection PIN (IP PIN) for future tax filings, as discussed earlier. File a police report if you suffered financial losses, as this can be helpful for disputes with financial institutions or for insurance claims.

  Change all compromised passwords, and use strong, unique passwords for all your online accounts, especially financial and email accounts. Enable multi-factor authentication (MFA) wherever possible, which adds an extra layer of security by requiring a second form of verification besides just a password.

Stay Vigilant Year-Round: Beyond Tax Season

While tax season is a hotspot for scams, the threat of identity theft and financial fraud is ever-present. Developing habits of vigilance and digital hygiene throughout the year is essential for long-term protection.

• Regularly Monitor Your Financial Accounts: Make it a habit to check your bank statements and credit card bills regularly for any unusual or unauthorized activity. The sooner you spot something suspicious, the quicker you can act to mitigate damage.

• Review Your Credit Report: You are entitled to a free copy of your credit report from each of the three major credit bureaus once every 12 months. Regularly reviewing these reports can help you identify any fraudulent accounts opened in your name or other inaccuracies that might indicate identity theft. Visit AnnualCreditReport.com to request your reports.

• Be Skeptical of Unsolicited Communications: Always question unexpected phone calls, emails, or texts, especially those asking for personal information, clicking on links, or making urgent payments. Remember the IRS's communication policies and apply that skepticism to all organizations that handle your sensitive data.

• Keep Software and Devices Updated: Ensure your computer and mobile devices have the latest operating system updates, antivirus software, and browser security patches. These updates often include critical security fixes that protect against new vulnerabilities exploited by scammers and cybercriminals.

• Educate Yourself Continuously: Scammers constantly evolve their tactics. Stay informed about the latest scam trends by checking reputable sources like the IRS, FTC, and consumer protection organizations. Awareness is your best defense.

Conclusion: Your Best Defense is Awareness and Action

The threat of tax scams during tax season is undeniable, impacting millions of Americans each year. From sophisticated IRS impersonation calls and emails to deceptive third-party websites, criminals are relentless in their efforts to steal your money and identity. The statistics shared by the U.S. Congressional Joint Economic Committee, including the alarming rate of victimization and the specific targeting of seniors, underscore the critical need for heightened awareness.

By understanding how the IRS truly communicates, recognizing the red flags of urgent threats and unusual payment demands, and meticulously verifying all contacts through official channels like IRS.gov, you can significantly reduce your risk. Furthermore, when seeking assistance from tax preparation services, thorough research and verification of credentials like the PTIN are non-negotiable steps to ensure you are dealing with legitimate professionals.

If you suspect you've been targeted or have fallen victim to a scam, remember that immediate action is key. Report the incident to ReportFraud.ftc.gov and take swift measures to protect your financial accounts and identity. Your vigilance not only safeguards your own interests but also contributes to a larger effort to combat these criminal enterprises. Stay informed, stay cautious, and protect your financial well-being this tax season and throughout the year.

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