- Crypto
- October 9, 2025
With increasing advancement in finance and technology, scams, frauds, and lies are also spreading rapidly. People are availing themselves of the benefits from advancements, but we cannot ignore the fact that there is always a risk in every sector, whether it is about investments, banking, or even taxes. Yes, you heard it right. Under the pretext of the Internal Revenue Service, scammers approach individuals and claim large amounts of money.
However, it is not difficult to avoid a scam. Now the question is how a common man could know that the person approaching him is a scammer or the real authorities. This blog is here to answer your every query. Before moving on to the solutions, it is very important to know the types of IRS tax scams.
7 Types of IRS Tax Scams That You Should Know
It is good to know what types in what different mediums scams may happen with people. The following are descriptive explanations of different types of IRS scams:
1. Phishing Scams
When you are the victim of a phishing scam, fraudulent emails or fake IRS websites trick you into entering your personal data. Later, they may use this data to trick you into paying heavy amounts. What these e-mails look like. here are a few examples: “Your refund is ready, click here to claim.”, Fake tax forms attached to emails. Their goal is to steal your social security number, banking details, or IRS login credentials.
2. Phone Call/ Impersonation Scams
In this type of scam, scammers pretend to be IRS agents who often use caller ID spoofing to show an IRS or a Washington DC number. They may threaten you with arrest, deportation, or license suspension. They also demand upfront payment via gift cards, debit cards, cash, or crypto. In a few cases, it can also be a Deepfake scam.
3. Refund Scams
This is the extreme scam where scammers file fake tax returns using stolen personal data and then claim refunds before you file. You get a letter from the IRS about a suspicious return in your name, but till then it is too late.
4. Tax Transcript Malware Emails
In this scam, the victim receives emails claiming to have their IRS tax transcript as an attachment. The document contains malware to steal sensitive data from your computer.
5. Fake IRS Letters
Scammers send realistic-looking but fake IRS notices to you. The logos, fonts, and language on the documents are all copied from real IRS documents. The directions given on these documents lead you to a scam number or a fake payment site.
6. Ghost Tax Preparers
This is a scam where the fraud preparers file your taxes and hide their identity but don’t sign the return. Their goal is to charge inflated fees, claim false deductions to boost your refund and attract audits
7. Stimulus or Relief Payment Scams
During times of economic relief (e.g., COVID-19), scammers pretend to be the IRS issuing payments. They ask for bank details to deposit your stimulus or send fake checks that bounce after you return part of the money.
Apart from these scams, many investors are advised to stay cautious from season scams. People are advised to stay alert especially for the period of few months when they are filing returns. Scammers become active in the filing seasons. Scammers time their attacks to match IRS activity and taxpayer behavior. People are more likely to respond because they’re already expecting refunds, IRS notices, filing deadlines, stimulus or relief payments.Here, if the investor is aware of how the IRS officially approaches you, then he/she can stay safe .
Scam Tactics vs. Real IRS Practices
Identification of the scam is the first step towards awareness and prevention. How to Recognize an IRS Tax Scam? The following are a few traits of the scamming process and a comparison of what the legitimate IRS does.
The IRS enforces U.S tax laws and collects federal taxes. It operates under the U.S. Department of the Treasury. The headquarters of the IRS are situated in Washington DC. Its main functions are to collect taxes, enforce tax laws, issue refunds, oversee tax benefits, and support tax payers.
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Sr. |
Topic |
Features of an IRS tax scam |
Features of official IRS communication |
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1. |
Communication (Text Messages/SMS) |
Scammers text you ‘out of blue’. Texts claiming to be from the IRS are labeled as urgent or action required. They have look like platforms |
No initial phone calls or private messages. IRS mails you first via official mail only. IRS never recommends you to take any immediate actions via mail not SMS |
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2. |
Communication via e-mail |
IRS fraud emails ask you to click on links to update personal or banking information. Emails contain grammar errors, fake IRS logos, or suspicious links. |
If you already have an IRS online account, you may receive secure messages within that account, never via a random email link. |
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3. |
Communication via social media |
Scammers DM you claiming to be an IRS agent about a refund, tax debt, or audit. |
The IRS does not initiate contact via private email, private text message, social media direct messages |
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4. |
Communication via Call |
Scammers usefake caller ID to display IRS or a government number, making it look legitimate. If you receive any call as an IRS agent, and he demands immediate cash over call, it is a fraud. Caller Spoof IRS Numbers by fake caller IDs to appear official. |
Only after sending letters, an IRS employee may call you but they will identify themselves by name and badge number. You can verify them by calling the IRS back using the official number 800-829-1040. They will never demand immediate payment over the phone or with threatening legal action. |
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5. |
Physical Letter |
Major identification is fake letters often have poor formatting, incorrect information, spelling errors and poor grammar or fake IRS seals. IRS Letter scam: fraudsters send a fake physical letter (sometimes called a “notice”) that looks official. |
The IRS sends you an official letter (Notice or Letter Form) sent via U.S. Postal Service. The letter includes: Your name, Tax ID (partially masked for security), IRS logo, notice number (you can match it at irs.gov/notice) and contact instructions |
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6. |
In-Person Visits |
When a fraudster visits you pretending to be an IRS agent, it’s called an in-person IRS impersonation scam. It’s rare but dangerous, because the scammer shows up physically at your home or business to intimidate you into paying fake tax debts or handing over sensitive information. |
IRS-Authorized Private Debt Collectors may visit you only in some older tax debt cases, and they’ll confirm their identity in writing first. They will show two forms of official ID: 1) Pocket commission 2) HSPD-12 card (a government-issued photo ID). You can verify them by calling the IRS. |
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7. |
Nature of Communication |
Scammers often use fear and urgency to intimidate victims. They may threaten arrest, deportation, or suspension of your driver’s license, legal action if immediate payment isn’t made. |
The IRS never threatens to have the police arrest you for nonpayment, they never ask for credit card or banking details via phone or email. |
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8. |
Payment Requests |
Scammers may ask you for an upfront payment and that too a huge amount. They demand for immediate payment and request for payment via gift cards,cryptocurrency, wire transfers etc If you’re asked to pay taxes through any of these methods, it’s a clear sign of an IRS tax refund scam. |
The IRS never requests payment through unconventional methods like gift cards or cryptocurrency, and never calls to demand immediate payment without sending you a bill first. |
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9. |
Payment Method |
Scammers may request you for personal or bank information and also demands for immediate payment. They expect from you to pay via common upi, gift cards, or cryptocurrency. |
The IRS never requests payment with gift cards, prepaid cards, or crypto.They accept payment only from the portal, that too after issuing the final bill. Official IRS.gov Link:irs.gov/payments. |
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10. |
Promises |
Scammers make promises like unsolicited refunds or Overpayment Claims They also telephone or fax unsolicited messages telling the listener that they are due a refund or have overpaid their taxes.The IRS tax refund scams are not actually to help you get a refund from the government but to con you into giving your personal details. |
To check such claims, do it directly on the IRS website. The IRS never promises such claims.. |
Current Situation
The IRS, along with state tax agencies and the tax industry, launched the Coalition Against Scam and Scheme Threats (CASST). The goal is to protect taxpayers by expanding education on emerging scams identifying fraudulent returns earlier. A recent analysis from The Kaplan Group shows a 62% year-over-year increase in monthly IRS-related scam reports, rising from 227/month in 2024 to 368/month in 2025.
With the increasing intensity of the scam, it is important for the individuals to take the necessary measures.
What To Do If You Sense You Are Being Scammed?
If you have already been scammed, always verify by contacting the IRS directly or using their online tools to check your account status. Before reaching out, you can try the measures given below to stay safe:
- Do not engage further by all means. Hang up the call, and stop replying to those who are claiming to be the representatives of the IRS.
- Document everything, including contact numbers, addresses, e-mail, screenshots, any website links, etc.
- Do not pay and avoid sharing any data.
- Report the scam - For IRS-related scams:
Forward phishing emails to: phishing@irs.gov.
Forward scam texts to: 7726 (SPAM).
Report impersonation calls to TIGTA (Treasury Inspector General for Tax Administration):www.tigta.gov
- Protect yourself further by changing passwords, updating reports regularly and signing up for IRS IP Pin.
Don’t Stay Silent: Take Action Against IRS Scams
If you find yourself in such a situation where you are being scammed, always opt for reporting it or seeking guidance from recovery services like Financial Recovery Experts . Remember, your one step can save you from huge upcoming consequences. Do not ignore the signs of the scam, and don’t be ashamed to seek help.
FAQs (Frequently Asked Questions)
The IRS almost always contacts taxpayers first through an official letter (Notice) sent by mail. They will not call, email, or text you out of the blue demanding payment. You can confirm if a contact is genuine by logging into your IRS account at IRS.gov or by calling the official IRS number (800-829-1040).
Signs of IRS scam are threats of arrest, deportation, or license suspension if you don’t pay immediately, requests for payment via gift cards, cryptocurrency, or wire transfer, pressure to act immediately without giving you time to verify or e-mails, texts, or calls with poor grammar, suspicious links, or caller ID spoofing “IRS”.
In general, no. The IRS does not initiate contact through email, text, or social media to request personal or financial information. You may receive secure online messages only if you’ve opted into IRS online services, but these will be through the official IRS portal.
1). Check the letter’s notice number on the IRS website. 2). Ask for the agent’s name and badge number, then hang up and call the IRS directly to confirm. 3). See if the contact is listed in your official IRS account. Remember: genuine IRS calls usually follow an official mailed notice.
Yes. Scammers are using AI-generated voices, realistic fake emails, and spoofed caller IDs to make their schemes more convincing. According to reports from the Treasury Inspector General for Tax Administration (TIGTA), phishing, vishing (voice scams), and smishing (SMS scams) have been on the rise, especially during tax season.