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Phishing Emails and Ghost Preparers – Beware Tax Scams

Dailyfed Staff

March 19, 2025

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Phishing Emails and Smishing Texts

  • What It Is: Scammers send emails or text messages pretending to be from the IRS promising refunds or threatening legal action for unpaid taxes. These messages may include links to fake websites that steal personal information or install malware.
  • How to Identify: The IRS never initiates contact via email, text, or social media about bills or refunds — only through regular mail. Look for misspellings, generic greetings, or email addresses not ending in “@irs.gov.” Hover over links (don’t click) to check the URL.

Fake IRS Phone Calls

  • What It Is: Fraudsters impersonate IRS agents using caller IDs that appear legitimate. They may demand immediate payment for “back taxes” via gift cards, wire transfers, or cryptocurrency, threatening arrest or fines.
  • How to Identify: The IRS doesn’t call without prior mailed notice and never demands instant payment through untraceable methods. Threats of immediate arrest are a giveaway.

Bogus or Ghost Tax Preparers

  • What It Is: Scammers pose as tax professionals, promising big refunds or low-cost filings. They may file fraudulent returns and pocket the refund, or refuse to sign the return, leaving you liable for errors.
  • How to Identify: Legitimate preparers have a Preparer Tax Identification Number (PTIN) and must sign your return. Check their credentials via the IRS directory.

False Tax Credit Schemes

  • What It Is: Scammers push ineligible taxpayers to claim credits like the Fuel Tax Credit, Sick and Family Leave Credit, or a fabricated “Self-Employment Tax Credit.” This can trigger penalties or audits.
  • How to Identify: Verify credit eligibility on IRS.gov. The Fuel Tax Credit, for instance, is for off-highway business or farming use. Misleading advice often lacks official sourcing.

IRS Online Account Scams

  • What It Is: Fraudsters offer to “help” set up your IRS Individual Online Account, then steal your personal info.
  • How to Identify: The IRS doesn’t need third-party help—anyone can set up an account directly at IRS.gov. Unsolicited offers, especially requesting sensitive data, are scams.

How to Spot Scams

  • Urgency: Scammers pressure you to act fast. The IRS gives written notice and time to respond.
  • Payment Methods: Requests for gift cards, wire transfers, or crypto are scams — IRS payments go through official channels like checks or Direct Pay on IRS.gov.
  • Verify Contact: Always cross-check with the IRS directly, not numbers or links from unsolicited messages.
  • Protect Your Data: Don’t share Social Security numbers, bank details, or login info with unverified sources. Use an Identity Protection PIN (IP PIN) from the IRS to secure your return.

If You Suspect a Scam

  • Don’t Engage: Hang up, don’t click links, and don’t reply.
  • Report It: Forward phishing emails to phishing@irs.gov, report phone scams to the Treasury Inspector General for Tax Administration (800-366-4484), and notify the Federal Trade Commission at ftc.gov/complaint.
  • Check Your Status: Use IRS.gov’s “Where’s My Refund?” tool or your online account to monitor your real tax status.
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