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Tax season already comes with stress, but this year, new tax rules introduced under the Trump administration are making Americans especially vulnerable. The changes have created confusion around eligibility for new deductions and credits — and scammers are stepping in to take advantage.
Those policy shifts are also driving larger refunds. IRS data shows refunds are up 14% this year, giving fraudsters even more incentive to target taxpayers with fake offers, refund claims, and urgent messages designed to steal money or personal information.
For many, these schemes can turn into costly and surprising financial mistakes. In fact, a McAfee survey revealed that nearly one in four Americans has been affected by some form of tax scam, highlighting just how widespread the problem has become.
As new policies and updates roll out, scammers are moving quickly to exploit the confusion. Here are the most common tax scams to watch for — and how to protect yourself.
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IRS impersonators
One of the most common tactics involves scammers pretending to be the IRS or another government agency. These fraudsters may contact you by phone, email, or text, claiming you owe taxes or need to verify your refund.
They often create a sense of urgency, warning of penalties or legal action if you don't respond immediately. In some cases, scammers use increasingly sophisticated tools, including AI-generated voices, to make their messages seem legitimate.
Victims are typically directed to click a link or visit a fake website where they're asked to provide personal information, such as a Social Security number or bank account details. The key red flag with this scam is that the IRS generally does not initiate contact through unsolicited emails, texts, or social media.
'Ghost' tax preparers
Another growing issue is the rise of so-called "ghost preparers." These are individuals who prepare tax returns for a fee but refuse to sign them, which is a major warning sign.
These preparers may inflate income, claim false deductions, or manipulate your return to generate a larger refund. While that may sound appealing upfront, it can lead to serious consequences if the IRS flags the return.
Because the preparer does not sign the return, the taxpayer is held fully responsible for any errors or fraud. Legitimate tax professionals are required to include their Preparer Tax Identification Number (PTIN) and sign the return. If someone refuses to sign your return, it's a strong signal to walk away.
Tax debt relief scams
Tax debt relief scams often target individuals who already owe money to the IRS. These schemes promise to settle your tax debt for a fraction of what you owe, often guaranteeing results that sound too good to be true.
Scammers typically charge large upfront fees and use aggressive sales tactics to pressure victims into signing up. Unfortunately, many people end up paying these fees without receiving any real help.
While the IRS does offer legitimate programs — such as offers in compromise — not everyone qualifies. Scammers exploit this gap by making unrealistic promises. If a company guarantees to eliminate your tax debt quickly, it's worth taking a closer look.
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Fake charity schemes
Charity scams are another tactic that tends to spike during tax season. Fraudsters may pose as legitimate nonprofits, claiming that your donation will reduce your tax bill.
These scams often involve creating fake organizations or websites with names that closely resemble real charities. Victims are pressured to donate quickly, sometimes using payment methods that are difficult to trace, such as gift cards, wire transfers, or cryptocurrency, which are major red flags.
Before donating, it's important to verify that the organization is a legitimate, registered nonprofit eligible for tax deductions. Taking a few extra minutes to check can prevent a costly mistake.
Social media tricks
Scammers are increasingly using social media platforms like TikTok and Instagram to reach potential victims. They often pose as tax experts and promote "secret" credits or strategies that promise unusually large refunds.
These schemes can be especially dangerous because they encourage taxpayers to claim credits they may not qualify for. In some cases, scammers take a percentage of the refund as their fee.
If the IRS later reviews the return, the taxpayer — not the scammer — is responsible for any inaccuracies. That can lead to audits, penalties, or even legal trouble. If something sounds too good to be true, it probably is.
How to protect yourself from tax scams
The IRS advises taxpayers to slow down and verify any tax-related communication before taking action. Scammers rely on urgency and confusion, so taking a moment to pause can make a big difference.
Avoid clicking on links from unsolicited messages, and always access IRS information directly through official channels. If you work with a tax preparer, confirm their credentials and ensure they sign your return.
You may also consider requesting an Identity Protection PIN from the IRS, which adds an extra layer of security to your account. At the same time, be sure to always check your refund status or account information directly through your IRS login. Reporting suspicious activity to the IRS or the Federal Trade Commission can also help prevent others from becoming victims.
Bottom line
Tax scams are becoming more sophisticated, especially during periods of policy change and uncertainty. As new rules create confusion, scammers are finding more opportunities to target unsuspecting taxpayers.
Staying informed and cautious can help you avoid costly mistakes. Taking simple steps — like verifying communications, choosing reputable preparers, and protecting your personal information — can go a long way toward helping you lower your financial stress and keep your money where it belongs.
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