CCCU Blog

Recognizing & Avoiding Tax Scams

Written by Consolidated Community Credit Union | Mar 26, 2025 5:00:00 PM

During this tax season, scammers are employing a variety of strategies to trick individuals. These strategies may include using fake links, pretending to be government officials, and masquerading as the IRS. Here are some essential tips to safeguard yourself against falling victim to these scams.

RECOGNIZING & AVOIDING TAX SCAMS

1: Watch out for demands and threats 

A major warning sign of a tax scam is receiving an urgent demand or threat. Scammers pretending to be the IRS might say that you owe back taxes and demand immediate payment. They often use forceful language or threaten legal action if you don't comply. The IRS will never issue demands or threaten to involve law enforcement. If you get a call, email, or text message with such demands, do not click on any links or respond – it is a scam.

2: Double Check Website Links

Fraudsters frequently set up fake websites that look nearly identical to official IRS pages. Always double-check website links for misspellings, extra characters or odd formatting. These sites may take you to harmful sites instead of IRS.gov which may make you and your personal information vulnerable. If you receive a call, email or text message containing website information claiming to be the IRS, never click on any links.

3: Beware of “Big Payday” Social Media Advice

Bad tax advice on social media can mislead you about your credit or refund eligibility. Influencers may try to persuade you to lie on tax forms or imply that the IRS is keeping a tax credit secret from you. Remember, falsifying tax documents is illegal and can lead to serious financial and legal consequences.


COMMON TAX SCAMS TO WATCH FOR

Charity Impersonators

When fake charities scam unsuspecting donors, the proceeds don’t go to those who need the help and those contributing to these fake charities can’t deduct their donations on their tax return. Always verify a charity’s legitimacy through the IRS’s Tax-Exempt Organization Search before donating.

Email & Text Message Impersonators

The IRS never initiates contact with taxpayers via email or text. If you receive a message claiming to be from the IRS and requesting sensitive information or payment, it’s a scam. Do not click on any links or attachments, as they may contain malware designed to steal your information.

Unclaimed Tax Refunds

This scam involves a mailing in a cardboard envelope with a letter using the IRS masthead, claiming it's about an "unclaimed refund." It includes fake contact details, odd punctuation, mixed fonts, and seeks sensitive personal information, such as driver's license pictures, for identity theft. Like any digital communication, if you receive an unsolicited, suspicious message from someone claiming to be the IRS, do not respond or share any personal information.

How the IRS Will Contact You

As a reminder the IRS will typically initiate contact through U.S. Mail – not email, phone, text or via social media images.

The IRS will NEVER:

  • Demand immediate payment over the phone
  • Ask for payment via gift cards, crypto or wire transfers
  • Make threats of legal action

STAY VIGILANT THIS TAX SEASON

Tax scams are continually changing, but being informed can protect you. Confirm all IRS communications, be wary of unsolicited messages, and never share personal information with unfamiliar sources. Remaining alert can secure your finances and personal details during tax season and beyond.

 

 

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