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Common Tax Scams and How to Avoid Them

March 12, 2025

Tax season is here, and unfortunately, so are tax scams. Whether you owe money or expect a refund, fraudsters are working overtime to trick taxpayers into handing over sensitive personal and financial information. At Columbia Credit Union, we want to help you stay informed and protected from these malicious schemes.

Common Tax Scams to Watch Out For

Scammers use a variety of tactics to create a sense of urgency, convincing victims to disclose personal details such as Social Security numbers, bank account details, and login credentials. Here are some common scams to be aware of:

  • Refund Calculation Scam – Scammers claim that the IRS has recalculated your refund and that you are owed additional money. They request personal banking information to “deposit” the funds but instead steal your data.
  • Stimulus Payment Scam – Fraudsters send messages falsely stating that you haven’t claimed your COVID-19 stimulus payment and request personal information to “process” the payment.
  • Verification Scam – Scammers pose as IRS officials requesting personal details such as W-2 forms, Social Security numbers, and even pictures of your driver’s license to “verify” your identity.
  • Fake Tax Preparers – Some fraudulent tax preparers may file tax returns on your behalf without your knowledge, redirecting your refund or accessing your bank account. Be wary of tax preparers who refuse to sign returns they prepare.

Protecting Yourself & Reporting Fraud

Understanding how the IRS operates is key to spotting scams. The IRS will never:

  • Call, text, or email demanding immediate payment.
  • Request payment without providing an opportunity to appeal.
  • Threaten to have you arrested.
  • Accept payments via gift cards.

If you suspect a tax scam, take immediate action:

  • Hang up on suspicious calls and do not respond to emails or texts claiming to be from the IRS.
  • Report scams to the U.S. Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484 or visit treasury.gov/tigta.
  • If you’ve been a victim of identity theft, report it to the Federal Trade Commission (FTC) at IdentityTheft.gov.

Stay Informed & Stay Safe

Law enforcement is cracking down on these scams, but awareness is your first line of defense. Remember:

  • The IRS primarily contacts taxpayers by mail, not by phone.
  • The IRS will never request payments via iTunes gift cards, prepaid debit cards, money orders, or wire transfers.
  • The IRS will not ask for personal information via email, text, or social media.

At Columbia Credit Union, your security is our top priority. Stay vigilant and share this information with family and friends to help protect our community from tax scams.