How to Protect Yourself from the Surge in Tax Scams
If it feels like you’re hearing more about tax scams lately, you’re not imagining things. In just the first half of this year, a major collection agency reported over $5.7 million in tax scam losses. That’s a staggering figure and a sign that criminals are only getting more aggressive in trying to separate people from their money.
The Growing Threat of Tax Scams
Tax scams are not only becoming more frequent but also more expensive. Industry reports show a 62% increase in reported scams compared to last year, with the average financial loss now reaching $32,000 per incident. That kind of financial hit can be devastating to a family’s budget or retirement plan.
Over the past five years, the rate of tax scams has more than tripled. These aren't just isolated incidents; they represent a growing trend that demands your attention. The good news is that staying informed and alert can significantly reduce your risk.
Understanding How the IRS Actually Communicates
One of the most effective ways to protect yourself is to understand how the IRS reaches out to taxpayers. Contrary to what scammers might want you to believe, the IRS does not start with phone calls, emails, or texts. Their first communication almost always comes by mail.
If you receive a letter from the IRS, take a breath. These notices are often routine, such as confirming a balance due, adjusting your refund, asking for clarification, or notifying you of missing information. If you’re unsure whether a letter is legitimate, check with your tax advisor or reference trusted IRS resources to confirm its authenticity.
Only after that initial mail contact—and only with your prior consent—might the IRS follow up via phone or email. If you have not given them that permission, any electronic outreach should be viewed with skepticism.
Recognizing the Most Common Tax Scams
Each year, the IRS compiles its "Dirty Dozen," a list of the most common and dangerous tax scams. Leading the list are phishing and smishing attacks.
Phishing scams come in the form of emails that appear to be from the IRS. They might claim you’re owed a refund, owe a debt, or face legal action unless you respond. These emails often include links or requests for personal data. Do not click and do not respond.
Smishing is the same tactic via text message. A text may claim your account has been locked or flagged for suspicious activity. It might urge you to “verify” your identity by providing personal information. This is another major red flag.
Both types of scams rely on fear and urgency to convince you to act without thinking.
Smart Ways to Protect Yourself
Here are a few key strategies that can help you stay protected:
Expect to hear by mail first. The IRS does not initiate contact by email, text, or phone.
Never trust the links or numbers in suspicious messages. If you receive a questionable message, verify it through official IRS contact channels or with your tax professional.
Get professional advice. If anything seems off, reach out to a trusted tax advisor. They can confirm whether a notice is legitimate and guide you on next steps.
Remember the consent rule. If you haven’t given the IRS permission to contact you by phone or email, any such message is likely a scam.
Stay informed. Review the annual “Dirty Dozen” list from the IRS to see what new tactics scammers are using.
It Starts with Vigilance
Scammers are getting more advanced. But so are your tools to stay safe. Understanding how the IRS operates and learning to spot the red flags of fraud can help protect not just your money, but your peace of mind.
As with most things in life, taking a moment to pause and question can be your strongest safeguard. If something feels off, it probably is. Trust your instincts, verify what you’re told, and don’t go it alone if you’re uncertain.
For additional information, visit the official IRS website or check the latest "Dirty Dozen" list for 2025.