Yes, tax refund scams are common and they target you in multiple ways
Tax refund scams are real, they happen every year, and they work because they exploit the fact that most people file taxes once a year and don't know what a legitimate IRS contact looks like. Scammers use phone calls, text messages, emails, and in-person tactics to either steal your refund after you've filed, trick you into overpaying for tax preparation, or get you to hand over personal information they can use to file a fake return in your name.
The IRS itself does not initiate contact with you by phone, email, or text to demand payment or threaten arrest. That is the single most reliable way to spot a scam. If someone contacts you claiming to be from the IRS and you did not call them first, it is a scam.
Key Takeaways
- The IRS never calls, emails, or texts you first—they send notices by mail only, so any unsolicited contact claiming to be the IRS is a scam.
- Scammers pose as tax preparers, refund processors, or IRS agents to steal your Social Security number, bank details, or refund itself.
- If you file your taxes and a scammer has already filed a fraudulent return using your information, the IRS will contact you by mail and the process to reclaim your refund takes weeks to months.
- You can report suspected tax scams to the IRS at irs.gov/report or to the Federal Trade Commission at reportfraud.ftc.gov.
The most common tax refund scam tactics
Phone and text scams are the most frequent. A caller claims to be from the IRS, says you owe back taxes or penalties, and threatens arrest, wage garnishment, or driver's license suspension if you don't pay when ready. They may ask you to buy gift cards, wire money, or provide your Social Security number and bank details. The pressure is real and the threat is fake.
Email and phishing scams send you a message that looks like it came from the IRS, a tax software company, or your bank. The email asks you to "verify" your information, click a link to "confirm your refund," or read an attachment. The link takes you to a fake website that looks identical to the real one, and anything you enter goes straight to the scammer.
Tax preparer scams happen when you hire someone to file your taxes and they either charge you an inflated fee, promise a larger refund than you're may have access to to, or steal your refund by redirecting it to their own bank account. Some preparers file false deductions or claim dependents you don't have to boost your refund—which makes you liable when the IRS audits.
Identity theft and fake returns occur when a scammer uses your Social Security number to file a tax return before you do. The IRS processes the fraudulent return, sends the refund to the scammer's bank account, and then rejects your legitimate return because a return has already been filed under your number. You find out when you file and get an error message.
What happens if a scammer files a return using your information
If someone files a fraudulent tax return in your name, the IRS will eventually detect it—usually when you file your own return and the system flags a duplicate. The IRS will send you a letter by mail (not a call or email) explaining that a return was filed under your Social Security number and asking you to verify whether it was you.
You respond to that letter with proof that you did not file it—typically a copy of your legitimate return, a police report, and an identity theft report filed with the Federal Trade Commission. The IRS then investigates, freezs the fraudulent refund, and works to process your legitimate return instead.
This process is not fast. It typically takes four to six months for the IRS to sort out the fraud and issue your real refund, though some cases take longer if the fraud is complex or if you don't respond to the IRS letter promptly. During that time, you will not receive your refund. You cannot speed this up by calling the IRS—they will tell you the same thing the letter said.
If the scammer's bank account received your refund, the IRS works with that bank to recover the money, but recovery is not may provide. The bank may have already allowed the scammer to withdraw the funds, in which case the money is gone and the IRS pursues the scammer through law enforcement.
How to protect yourself before filing
Use only IRS-recognized tax software or a Preparer Tax Identification Number (PTIN) holder. The IRS maintains a list of approved software on irs.gov. If you hire a preparer, verify their PTIN on the IRS website—any legitimate tax professional has one and will give it to you without hesitation.
Guard your Social Security number. Do not give it to anyone who calls you unsolicited, texts you, or emails you. The IRS already has your Social Security number on file; they do not need you to provide it over the phone.
File early. The earlier you file your legitimate return, the harder it is for a scammer to file a fraudulent one using your number. If you file in January or February, the window for fraud is much smaller than if you wait until March or April.
Use a strong, unique password for any tax software account. Do not reuse passwords across websites. If a scammer gets your password for one site, they can try it on others.
What to do if you think you've been scammed
If you received a call, text, or email claiming to be from the IRS and asking for payment or personal information, it is a scam. Do not engage further. Hang up, delete the message, or close the email.
If you gave the scammer money, contact your bank or payment service when ready. If you sent money via wire transfer or gift card, the money is usually gone, but report it anyway so the bank can flag the account that received it. If you used a credit card, you may be able to dispute the charge.
If you gave the scammer your Social Security number, bank account details, or other personal information, file an identity theft report with the Federal Trade Commission at identitytheft.gov. This creates an official record and gives you a recovery plan. You can also file a police report in your jurisdiction, though police typically do not investigate individual scams.
If you discover that someone filed a tax return using your Social Security number, contact the IRS directly at 1-800-829-1040 (the main IRS line) and explain the situation. They will flag your account and send you a letter with next steps. Do not wait for the IRS to contact you first.
Reporting tax scams to authorities
Report suspected tax scams to the IRS at irs.gov/report. You can report phishing emails, fake websites, and phone scams. The IRS uses these reports to identify patterns and shut down operations.
Report the scam to the Federal Trade Commission at reportfraud.ftc.gov. The FTC collects complaints and shares data with law enforcement. If the scam involved identity theft, file a report at identitytheft.gov, which is also run by the FTC.
If you lost money, you can also file a complaint with the FBI's Internet Crime Complaint Center at ic3.gov. This is especially useful if the scam involved wire fraud or significant sums of money.
Local police departments can take a report, but they rarely investigate individual scams. A police report is useful mainly for your own records and for identity theft documentation.
Frequently Asked Questions
Can the IRS really arrest me for unpaid taxes over the phone?
No. The IRS does not threaten arrest by phone, and they do not demand when ready payment via wire transfer or gift card. If you owe taxes, the IRS sends you a bill by mail and works with you on a payment plan. Arrest for tax crimes is extremely rare and only happens after years of non-compliance and a court order.
What if I filed my taxes and then got a letter saying someone else filed under my number?
Respond to the IRS letter when ready with proof that you filed first—a copy of your return, your filing confirmation, or a bank statement showing your refund was deposited. The IRS will investigate and process your legitimate return. Do not ignore the letter.
If a scammer got my refund, can I get it back?
The IRS will attempt to recover it from the bank account where it was deposited, but if the scammer has already withdrawn the money, recovery is unlikely. You may be able to file a claim with your bank or report it to law enforcement, but the money is usually lost.
How do I know if a tax preparer is legitimate?
Ask for their Preparer Tax Identification Number (PTIN) and verify it on the IRS website at irs.gov. Every legitimate tax preparer has a PTIN. Also check whether they are enrolled as an IRS Enrolled Agent, Certified Public Accountant, or attorney—these credentials mean they have met education and ethics standards.
What should I do if I'm not sure whether an email is from the IRS?
Do not click any links or read any attachments. Go directly to irs.gov by typing the address into your browser yourself, log in if you have an account, and check your IRS messages there. The IRS will never ask you to click a link in an email to access your account.