Tax season brings refunds, financial planning opportunities—and unfortunately, a surge in scams targeting taxpayers. Two of the most common and damaging schemes the IRS highlights every year are IRS impersonation scams and ghost tax preparers. Understanding how these frauds work is the best way to protect yourself, your identity, and your money.
IRS Impersonation Scams: What They Look Like & How They Work
IRS impersonation is one of the top threats, with scammers now using AI-generated messaging and voices in email, text messages, social media, and phone calls to trick you into sharing sensitive information. Phishing (email) and smishing (text) messages often appear official and may include alarming language, case numbers, or even QR codes linking to fake IRS portals designed to steal data.
These Scams May:
- Claim your account is locked or under review
- Urgently demand you verify personal information
- Threaten penalties or legal action if you don't respond
- Use spoofed caller ID or AI-generated voices to sound convincing
To recognize potential warning signs, be aware that AI-generated emails, texts, and direct messages are often grammatically perfect but come across as overly formal, stiff, repetitive, or lacking any personal context. Many have links that look legitimate but when hovered over show a suspicious URL. Look out for any unexpected message asking you to verify passwords, Social Security numbers or one-time passcodes. If you get a call that is suspicious, listen for robotic voices or delays before a voice responds. Both could be signs of trouble.
Actions to Take: If you are a victim of an IRS Impersonation Scam, you must file a paper 1040 tax return and attach it to Form 14039 Identity Theft Affidavit. You should also, contact all credit bureaus—Equifax®, Experian®, and TransUnion®—to freeze your credit file and report the scam to the Federal Trade Commission.
Ghost Tax Preparers: The Scam You May Not See Coming
While IRS impersonation scams target you directly, ghost tax preparers operate under the guise of helping you with your tax return. Ghost tax preparers are often unlicensed individuals who complete tax returns for a fee but refuse to sign them, leaving you to face the consequences.
Ghost Tax Preparers Commonly:
- Refuse to sign your return or provide a PTIN (legally required Preparer Tax Identification Number)
- Ask you to sign a blank or incomplete tax return
- Charge fees based on your refund amount
- Promise unusually large refunds
- Require cash-only payments and provide no receipt
- Invent income or claim fake deductions to inflate refunds
- Redirect your refund into their own bank account
These behaviors have been documented in IRS advisories as well as consumer protection reports nationwide. Remember, ghost preparers often disappear after filing fraudulent returns, leaving you to deal with audits, penalties, and repayment of bogus refunds.
Actions to Take: If you are a victim, you should use the IRS Return Preparer Compliant Form 14157 to file a complaint about the tax-preparer fraud and report the tax scam to the Federal Trade Commission. If the preparer submitted your return without your consent, altered information, stole your refund, or committed fraud, you should also submit Form 14157-A, which is a sworn statement to report problems such as redirected refunds or tax returns that were filed fraudulently or without your authorization.
How to Protect Yourself This Tax Season
- Know How the IRS Contacts You
- Remember, the IRS initiates contact via mail, never through unsolicited email, text, or direct messages. The IRS also does not threaten arrest or demand immediate payment over the phone. You should always avoid clicking on links or scanning QR codes from unexpected messages.
- Remember, the IRS initiates contact via mail, never through unsolicited email, text, or direct messages. The IRS also does not threaten arrest or demand immediate payment over the phone. You should always avoid clicking on links or scanning QR codes from unexpected messages.
- Verify Any Tax Preparer
- Legitimate paid preparers must have a valid PTIN and must sign the return. You can verify a tax professional using the IRS directory of credentialed preparers.
- Legitimate paid preparers must have a valid PTIN and must sign the return. You can verify a tax professional using the IRS directory of credentialed preparers.
- Review Every Return Before Signing
- Even if you use a professional, read your return carefully. Errors—accidental or intentional—are your legal responsibility once you sign.
- Even if you use a professional, read your return carefully. Errors—accidental or intentional—are your legal responsibility once you sign.
- Never Share Personal Information Through Unverified Links
- If you receive an IRS-related message, go directly to IRS.gov rather than engaging with the message.
Scammers evolve their methods every year, and each new year brings more sophisticated risks than ever—with AI-enhanced impersonation and a rise in ghost preparer fraud. Staying cautious, verifying who you're working with, and knowing the IRS's communication practices can help keep your identity and refund safe.
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