How to Recognize IRS Tax Scams, IRS Fraud, and Verify Legitimate Communications
The IRS is one of the most well-known and feared government agencies in the United States. Taxpayers naturally pay close attention when they receive communication that appears to come from the IRS. Unfortunately, this makes the IRS an attractive target for scammers who exploit that fear and trust with fake IRS letters or calls to steal personal and financial information.
Understanding how the IRS actually communicates with taxpayers is crucial in protecting yourself from scams. In this post, we’ll explore the most common IRS tax scams, IRS fraud scams, IRS impersonation fraud, how the IRS legitimately contacts taxpayers, and the red flags that indicate you may be dealing with a fraudster.
Know How the IRS Actually Contacts Taxpayers and Avoid IRS Tax Fraud
The IRS’s primary method of communication is regular U.S. mail delivered by the United States Postal Service (USPS). If you owe taxes, are being audited, or need to provide additional information, the IRS will send an official notice by mail.
When the IRS May Call or Visit
As a former IRS Special Agent, I can confirm that in certain cases, the IRS does make unannounced visits. However, when legitimate IRS representatives visit taxpayers, they carry official government law enforcement credentials, including a badge and a detailed identification card. If someone claims to be from the IRS but refuses to provide proper credentials, that is a major red flag.
In rare cases, the IRS may contact a taxpayer by phone or even visit in person, but these situations are limited to specific circumstances, such as:
- An overdue tax bill
- A delinquent tax return
- A criminal tax investigation
- An audit or collection matter that has already been communicated via mail
Even when the IRS does call or visit, they will never demand immediate payment using gift cards, cryptocurrency, or wire transfers. They also will not threaten arrest or deportation if you do not comply. These are tactics used exclusively by scammers.
Does the IRS Email Taxpayers?
The IRS does not send unsolicited emails requesting personal or financial information. However, in specific cases, they may email taxpayers who have opted into secure electronic communications through the IRS Online Account or other official IRS portals. Even then, these emails will never request sensitive information such as Social Security numbers or bank details.
If you receive an unexpected email claiming to be from the IRS, it is almost certainly a phishing attempt designed to steal your information. The IRS advises taxpayers to forward such emails to phishing@irs.gov and then delete them immediately.
Common IRS Tax Scams
Scammers use various tactics to impersonate the IRS, often committing IRS fraud through phishing, fraudulent letters, and IRS impersonation fraud. Here are some of the most common types of scams:
1. Phone Call Scams (IRS Impersonation Calls)
One of the most common tax scams involves fraudsters calling taxpayers and claiming to be IRS agents. These scammers may:
- Demand immediate payment and threaten legal action if you don’t comply
- Claim you owe back taxes and must pay now to avoid arrest
- Insist that you pay using an untraceable method such as prepaid debit cards, wire transfers, or cryptocurrency
2. Phishing Emails and Fake IRS Websites
Phishing emails often appear to come from the IRS and may include:
- Fake tax refund offers
- Requests to verify personal or financial information
- Links to fraudulent websites that look like the official IRS site
These emails may also contain malicious attachments designed to steal your identity or financial data. Never click on links or download attachments from unsolicited IRS emails. Instead, report them to phishing@irs.gov.
3. Text Message and Social Media Scams
The IRS does not initiate contact via text message or social media. Any message you receive on these platforms claiming to be from the IRS is a scam. These scams often contain links to fraudulent sites designed to steal your information.
4. Fake IRS Letters and Paper Notices
Some scammers go so far as to send fake IRS letters in the mail. While these can look official, they often contain telltale signs of fraud:
- Incorrect IRS logos
- Demands for immediate payment via non-traditional methods
- Threats of legal action if payment is not received immediately
- Poor grammar or misspelled words
If you receive a suspicious IRS notice, compare it to official IRS letters on the IRS website or call the IRS directly to verify its authenticity.
5. Ghost Tax Preparers and Tax Return Fraud
Some fraudsters pose as tax professionals, offering to prepare and file tax returns on your behalf. Warning signs of fraudulent tax preparers include:
- Refusing to sign your tax return (a major red flag known as a “ghost preparer”)
- Promising unusually large refunds
- Charging fees based on a percentage of your refund
- Depositing your refund into their own account instead of yours
Always use a reputable tax preparer with a Preparer Tax Identification Number (PTIN), and never sign a blank tax return.
How to Protect Yourself from IRS Tax Scams
Verify IRS Communications
If you receive a suspicious call, letter, or email claiming to be from the IRS, take these steps:
- Check for official IRS notices.
- Visit IRS.gov and use the “Search” tool to look up the notice number.
- Call the IRS directly.
- If you are unsure about a notice or demand for payment, call the IRS at 1-800-829-1040 to verify.
- Do not provide personal information over the phone.
- The IRS will never demand immediate payment or threaten you with legal action on an initial phone call.
- Ignore and report suspicious emails and text messages.
- Forward phishing emails to phishing@irs.gov.
- Report scam calls to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.
Set Up an IRS Online Account
One of the best ways to protect yourself is to create an IRS Online Account at www.irs.gov. This allows you to securely access tax records and monitor your tax activity, reducing the risk of fraud.
File Your Taxes Early
Filing your tax return early helps prevent scammers from filing fraudulent returns in your name. If a scammer tries to file a fake return before you do, you may face delays in receiving your legitimate refund.
Use Strong Security Measures
- Use multi-factor authentication for online tax services.
- Never share your IRS username, password, or security codes with anyone.
- Secure sensitive tax documents and dispose of old tax records safely.
Conclusion: Stay Vigilant Against IRS Tax Scams and Fraud
Scammers are constantly evolving their tactics, but understanding how the IRS actually communicates can help you stay ahead of fraud. Remember:
- The IRS primarily contacts taxpayers by U.S. mail.
- They do not initiate contact by email, text, or social media.
- The IRS will never demand immediate payment via gift cards, cryptocurrency, or wire transfer.
- If you receive a suspicious email or call, verify it with the IRS directly before taking any action.