How to Protect Yourself from Tax Scams in 2025

Common Tax Scams

IRS Impersonation

Scammers call or email pretending to be the IRS, threatening arrest or license revocation. Remember: the IRS will never call to demand immediate payment, threaten arrest, require a specific payment method (gift cards, wire transfers), or ask for credit card numbers over the phone.

Phishing Emails

Fake emails appearing to come from the IRS or tax software companies attempt to steal your personal information. The IRS does not initiate contact by email, text, or social media.

Ghost Tax Preparers

Unlicensed preparers who file fraudulent returns, often inflating refunds, then disappear. They may refuse to sign the return or provide their PTIN. Always verify your preparer has a valid Preparer Tax Identification Number.

Identity Theft

Criminals use stolen Social Security numbers to file fraudulent returns and claim refunds before you do. Signs include: IRS rejection of your return because one was already filed, receiving a tax transcript you did not request, or IRS notices about income from an employer you do not recognize.

Protection Steps

File early before scammers can use your SSN

Use strong, unique passwords for tax accounts

Enable two-factor authentication on IRS.gov and tax software

Request an IP PIN from the IRS for additional filing security

Never share your SSN unless absolutely necessary

Monitor your credit for unauthorized activity

Use reputable tax software like Taxation.ai with encrypted data transmission

If You Are a Victim

File IRS Form 14039 (Identity Theft Affidavit)

Contact the Federal Trade Commission at IdentityTheft.gov

Place a fraud alert on your credit reports

File a police report

Continue filing tax returns, even if by paper with Form 14039 attached

Taxation.ai uses bank-level encryption and secure authentication to protect your tax data and personal information.