How to Protect Your Information and Avoid Tax Scams

Tax time is upon us, and unfortunately so are the scammers. Here’s what you need to know to avoid this new tax scam and protect your tax information. Here’s what you need to know to avoid this new tax scam and protect your tax information.

Context: The IRS Recovery Rebate Credit announcement

Scammers are taking advantage of a recent IRS announcement about special payments for taxpayers who did not claim the 2021 Recovery Rebate Credit. In summary:

• The Recovery Rebate Credit is a refundable tax credit for people who did not receive one or more of the 2021 Economic Impact Payments (also called stimulus payments).
• IRS data shows that many eligible taxpayers did not claim the credit.
• The agency is issuing automatic payments to eligible people who did not claim the Recovery Rebate Credit on their 2021 tax returns.

What is the 2025 text message scam?

Now, scammers are targeting taxpayers with fraudulent text messages. These fake texts claim that recipients will receive an Economic impact Payment from the IRS. The messages may ask for sensitive personal information like bank account details or your Social Security number to receive the payment, which the scammers then use to steal your identity or financial information.

The IRS has made it clear that eligible taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 tax return will automatically receive their payments — no action is needed from you to get it. These payments will be sent via direct deposit or a paper check without any need for you to verify personal details through text messages or any other unsolicited communication.

How to spot and avoid a tax scam

Keep an eye out for these red flags when it comes to text messages or other correspondence claiming to be from the IRS:

• Type of communication: The IRS will never initiate contact with you via text message for things like Economic Impact Payments or to request financial information. The IRS will only send you a text or email if you have given them permission to do so. The IRS will only send you a text or email with your express permission.
• Suspicious links: Remember that government websites always end in “.gov.” Scam texts may contain suspicious links to sites ending in “.com” or “.net.” Look closely at the link for any oddities or misspellings as well.
• Demands or threats: Be cautious of any text messages or other communication urging you to pay “now or else.” These types of messages might threaten arrest or deportation to bully you for personal information. They may also ask for unofficial forms such as gift cards. The IRS will not contact you via text message or email unless you have given them permission. When in doubt, contact the IRS to verify that the correspondence is genuine. Stay informed about common tax scams. Avoid these common tax scams this year. Some other common tax fraud schemes include:

Phone calls

claiming that you owe taxes and threatening you with arrest or other penalties. The IRS will never demand immediate payment over the phone or threaten arrest.

1. Fraudulenttax preparers
2. who charge high fees or promise big tax credits or tax refunds. Always verify the credentials of any tax preparer you work with.Phishing scams via email or social media
3. that claim you’re eligible for a tax refund or need to update or verify your tax information. Fake charities: Only donations to qualified charities are tax-deductible. If you want to check if a charity is legitimate, look up tax-exempt organizations here.

Disaster fraud:

Scammers may contact you offering “help” with casualty loss claims or promises of big refunds.

• If you believe you’ve fallen victim to a fake IRS identity theft or a phishing scam, check out our article What to Do If You’re a Victim of Tax Identity Theft.How to report tax fraud
• If you get a scam text, email, or other correspondence impersonating the IRS, follow these steps: Do not respond to the message.Do not click on any links or open attachments in the message.
• Report the scam to the IRS by calling 800-829-1040 and the TIGTA website. You can also forward suspected phishing emails to phishing@irs.gov.Delete the email or text.
• The bottom lineBeing informed and cautious can help you avoid falling for scams like the 2025 fake IRS text scam and keep your tax information safe this season. Remember to stay safe and that the IRS will never send you a text message asking for sensitive information. Always verify at irs.gov if you are in doubt.

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