5 Tax Scams the IRS Warns are Targeting Millions of Americans

Person organizing tax documents on a desk, reviewing papers and receipts while preparing financial records.
Josh Nicole Pepito
Published January 31, 2026
Person organizing tax documents on a desk, reviewing papers and receipts while preparing financial records.
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As the annual tax filing window opens, the Internal Revenue Service is sounding an unusually urgent alarm. With millions of Americans preparing to submit returns, criminals are exploiting confusion, deadlines, and financial anxiety to harvest personal data and siphon refunds.

The IRS expects roughly 164 million individual tax returns to be filed this season, most through electronic platforms. That scale creates opportunity. When speed and convenience dominate filing behavior, vigilance often declines, giving scammers a narrow but lucrative window.

According to the agency, identity theft remains the central threat. Stolen information can be used to file fraudulent returns long before legitimate taxpayers realize something is wrong.

Digital Deception and the Rise of Social Media Tax Myths

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Social media has become a surprisingly effective vector for tax related misinformation. The IRS warns that viral posts and influencer driven content can blur the line between questionable advice and outright fraud.

Some posts encourage users to exaggerate income losses, invent dependents, or claim nonexistent credits, all framed as insider knowledge or hidden loopholes. Others redirect users to private messages where scammers request sensitive data directly.

The danger lies not only in financial loss but also in long term consequences. Filing false information, even unknowingly, exposes taxpayers to audits, penalties, and delayed refunds.

Phishing, Smishing, and the Targeting of Vulnerable Taxpayers

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Email and text based scams remain among the most persistent threats. Criminals impersonate the IRS, warning recipients of urgent problems that require immediate payment or verification.

These messages often include malicious links or attachments designed to steal login credentials or infect devices. Once accessed, the damage can extend far beyond tax fraud into broader financial theft.

Older Americans are particularly vulnerable. Seniors near or in retirement are frequently pressured into withdrawing funds or sharing account details, decisions that can trigger serious tax and financial repercussions.

Defensive Measures the IRS Urges Americans to Adopt Now

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To counter rising threats, the IRS is emphasizing prevention over recovery. One key recommendation is the creation of an Identity Protection PIN, a six digit code that blocks unauthorized tax filings tied to a Social Security number.

Businesses and tax professionals are also under scrutiny. The agency reminds them of their legal duty to maintain written security plans, update cyber defenses, and use multi factor authentication to protect client data.

Ultimately, the IRS stresses that awareness is the strongest safeguard. Recognizing red flags, slowing down during filing, and treating unsolicited tax messages with skepticism may be the difference between a routine tax season and months of financial fallout.