Getting your documents in order and navigating what can be confusing tax lingo - tax season can be difficult. When you pile scammers, fraudsters, and misinformation on top of it all, the stress only grows.
Being aware of fraudulent schemes can minimize your bad luck and protect you from IRS penalties, interest, and, in some cases, criminal prosecution if you fall for a ploy.
Here are 3 big tax dangers you need to know:
Text scams
A popular scam this season is going around where consumers receive a text promising a $1,400 stimulus check. It claims to be from the IRS and says the consumer is eligible for an 'Economic Impact Payment'. The text includes a link to a fake IRS website that prompts victims to enter sensitive data. Don't fall for it! There are currently no stimulus checks being issued by the IRS in 2025. Remember, the IRS doesn't text people without their permission. The IRS will only text or email you with prior permission. So, if you receive an unexpected or unsolicited text, just ignore it and never click on the link.
Misleading social media tips
The IRS is advising consumers to watch out for bad social media advice and says incorrect tax information on social media is a growing problem. Some advice includes encouraging people to 'beat the system' by misusing and incorrectly filing out tax documents. That could not only result in tax issues, but potentially other serious legal penalties! If you have a tax question or issue, reach out to the IRS or a tax professional.
Offer in Compromise (OIC) misinformation:
An Offer in Compromise is when a taxpayer works with the IRS to settle a tax debt for less than the full amount owed. It's a legitimate program with the IRS as an option for those unable to pay the full tax liability or face financial hardship if forced to do so. However, some scammers are trying to take advantage of the program. A scammer may contact a filer saying they need to pay to apply to the program or make promises they can settle a person's tax debt for them if they pay a fee. In reality, there is no application fee for the program. Not every taxpayer will qualify for the program, but it is free to find out if you do. Taxpayers can check their eligibility by using the IRS's Offer in Compromise Pre-Qualifier Tool.
Remember, the IRS will never ask for credit or debit card numbers by phone. Also, anyone telling you to pay by gift card or cryptocurrency is a scammer! The IRS only accepts payment in U.S. dollars.
Check out the IRS's 'Dirty Dozen' list for 2025 to learn more about tax scams and threats.
