Tax Day is coming fast. If you’re like millions of others, you’re pulling together receipts, filling out 1040s, and eyeing the upcoming deadline.
But while you’re in a hurry to check your math and ensure everything is accurate, it also pays to be careful when it comes to fraud.
Fraudsters love tax time. It’s a golden opportunity to steal your personal information such as your Social Security number or banking information.
If you get an unsolicited phone call or text from the IRS, it’s not the IRS. The Internal Revenue Service will never request personal or financial information by email, text, letter or social media. Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank
As one example, one of the most common ways taxpayers are defrauded is impersonation and urgent demands.
“If you get an unsolicited phone call or text from the IRS, it’s not the IRS. The Internal Revenue Service will never request personal or financial information by email, text, letter or social media. That’s straight from the IRS website,” said Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank. “If the IRS needs further information on your return, it contacts you through the US Mail.”
However, those aren’t the only tax-related scams. Here a few of the most common that crop up this time of year.
5 Common Tax Fraud Scams
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- Executive impersonation –In this scam, the fraudster poses as a company executive requesting a list of employees or a file containing the W-2 information for employees. Complying and providing this information will likely result in the compromise of the personal data of your employees and enable the fraudster to perpetrate identity theft.
- IRS impersonation – Fraudsters, posing as IRS employees or investigators, alert a taxpayer of a potential error in their return or an offer to recalculate the return for a larger refund, and convince the taxpayer to provide personal and private information – such as their social security number, user ID and password to the irs.gov website, bank account information or a copy of their tax forms.
- Advanced Payment scam – In return for personal information or a fee, the fraudster offers early or advanced access to the tax return. There are certainly legitimate businesses that offer advanced access to funds for a fee, so thoroughly investigate the source before providing any information.
- Tax Preparers, Advisors or Advocates – Choose your tax return preparer carefully. Even though most tax return preparers provide honest, quality service, some may cause harm through fraud, identity theft and other scams. The IRS Taxpayer Advocate Service does not randomly contact taxpayers. Taxpayers reach out to the service first and are then contacted by an agent.
- Unclaimed Refunds and Stimulus Payments – The 2025 tax season has seen many scams offering “unclaimed refunds” or fake stimulus payments, promising payment into your bank account or by check within one or two business days. This is a ruse to trick taxpayers into clicking a link that steals Social Security numbers, banking information and other confidential information.
Now, you know what to look for. In the meantime, remember this:
The IRS will never:
- Call to demand immediate payment using a specific payment method, such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
- Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
- Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Call unexpectedly about a tax refund.
- Leave prerecorded, urgent or threatening messages. In many variations of the phone scam, victims are told if they do not call back, a warrant will be issued for their arrest. Other verbal threats include law-enforcement agency intervention, deportation or revocation of licenses.
“Criminals will go so far as faking or ‘spoofing’ by creating caller ID numbers that appear to be legitimate – and even from an IRS office,” Taylor said. “Fraudsters also spoof other government agencies, including law enforcement and the department of motor vehicles.”
The best way to avoid scams is to be fraud aware and stay educated on the potential fraud schemes being used today. Jeff Taylor
3 Steps to Take if You Receive a Fraudulent Call
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- Record the number and then hang up the phone immediately.
- Report the call to TIGTA (U.S. Treasury Inspector General for Tax Administration) using this link: (https://www.tigta.gov/hotline).
- Report the number to [email protected] and be sure to put “IRS Phone Scam” in the subject line.
“The best way to avoid scams is to be fraud aware and stay educated on the potential fraud schemes being used today,” Taylor said. “Perpetrators of tax fraud typically prey on stress, confusion and fear. Criminals know that filing taxes can be complicated and a stressed individual may be more likely to fall for one of these scams. It adds up to a perfect environment for scammers.”
The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.