With the widespread adoption of artificial intelligence, the world continues to an online, digital experience. With that spread, so too spreads the “bad guys” into the digital space. In lockstep with our focus on taxes, the IRS has recently shared their latest “Dirty Dozen” of tax scams, the majority of which involve digital manipulations to try and steal your money. For the detailed list of the dozen most common scams you can visit the IRS page here.
Some of the top techniques to be aware of:
- Phishing & Smishing: Using “Phishing” (realistic looking emails) and “Smishing” (realistic looking texts) techniques, scammers often send alarming messages to get you to click on a fake IRS link or website. Specifically, Spear Phishing/Smishing is on the rise, which is a trick using the IRS logo and a variety of subject lines like “verify your accounts” or “claim” or “confirm” your refund status. The IRS stresses they do not contact taxpayers in these manners, and advises not to click on any unsolicited or unexpected links or attachments. For example, the IRS reported over 600 social media impersonators during fiscal year 2025!
- Climbing up the list this year is the rise of fake charities. The IRS reports a rapid rise in fraudsters using fake charities to exploit specific disasters to draw in donations or collect personal information to perpetuate further fraud. The IRS reminds us that they keep a qualified tax-exempt organization list that provides all of the charities recognized by the IRS that would allow a taxable deduction. In short, make sure your philanthropic intent is going to a legitimate charitable organization.
- “Helpful” Scammers: To help taxpayers the IRS has made opening your online account very simple by going to Online Account at IRS.gov. In that account you can gather some of your individual tax information, and in some simpler cases, file your tax return for free. Because this area has valuable information, scammers are trying to gain access to these accounts. The typical scam is a third party offering “help” to create your online account. Doing so they gain access to your name, social security number, photo identification, etc. Sometimes these scammers will even charge a fee for their “help.”
The IRS reminds taxpayers that the only place to create an Online Account is at the IRS.gov website. Moreover, the Service stresses that there should be no need to seek third-party assistance as the process is simple, and they remind us that the IRS will never ask for payment to open these accounts.
The IRS is asking for your help to stop these scammers. They ask that if you receive a suspected fraudulent message that you, the taxpayer, should take a screenshot of the message and include the screenshot in an email to phishing@irs.gov with the following information:
- Date/time/time zone they received the message
- Phone number that received the text message
For other fraudulent concerns the IRS asks that you report an abusive tax scheme using the online Form 14242 – Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed Form 14242 PDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.
The IRS also offers suggestions and resources to help you as well. They recommend the following precautionary steps:
- Protect your personal data. Don’t routinely carry your Social Security card, and make sure your tax records are secure. Treat your personal information like you do your cash; don’t leave it lying around.
- Always use security software with firewall and anti-virus protections. Make sure the security software is always turned on and can automatically update. Encrypt sensitive files such as tax records you store on your computer. Use strong and varied passwords, and make sure your tax preparer has similar protections.
There are recommended links to review as well. To learn additional steps you can take to protect your personal and financial data, visit Taxes. Security. Together.
You work hard for your money, and you deserve your tax refund as well. Remain diligent when managing your tax preparations, and if something seems “phishy” from the IRS, trust your instincts and question what’s going on to help avoid being scammed.
IMPORTANT DISCLOSURES: The information provided is based on internal and external sources that are considered reliable; however, the accuracy of this information is not guaranteed. This piece is intended to provide accurate information regarding the subject matter discussed. It is made available with the understanding that Benjamin F. Edwards is not engaged in rendering legal, accounting or tax preparation services. Specific questions on taxes or legal matters as they relate to your individual situation should be directed to your tax or legal professional.