ST. LOUIS — Better Business Bureau (BBB) warns consumers to take precautions against tax scams and identity theft this filing season.
BBB regularly receives reports about government impostors, including around tax season. Scammers impersonating the IRS hope to get your personal information for tax identity theft or to trick you into paying them directly.
How tax scammers operate:
By phone: Someone pretending to be with the IRS calls and requests personal information or payment, claiming you owe back taxes or that they are working on your refund. They may pressure you to act immediately and threaten arrest or fines if you don’t comply. These scammers will go to great lengths to appear real, including giving a fake badge number, leaving official- sounding robocall messages or setting up a fake caller ID that looks like it’s from Washington, D.C.
By phishing:
Scammers send messages by email, text or social media claiming to be from the IRS. These messages link to a fake IRS website to “update your IRS e-file immediately.” This is a ploy to get your personal information for tax fraud.
Once they have your Social Security number or other personal information, scammers can commit tax identity theft by filing a tax return in your name and collecting your refund.
If they get away with it, the results can be costly. The IRS’ annual report identified $4.49 billion worth of tax fraud in 2025. Reports to BBB Scam Tracker in 2025 showed a $350 median loss among those who encountered tax collection scams.
“Remember that the IRS’ first contact with you will be by mail — never by email, social media or text message. Trust your gut if you receive a message that doesn’t seem right,” said Michelle L. Corey, BBB St. Louis president and CEO.
BBB’s seven tips to avoid tax identity theft and scams:
– File early. Filing as soon as you can reduces the chance that someone can steal your identity by filing your taxes before you do. Make sure you have all relevant documents before filing.
– Consider an Identity Protection PIN (IP PIN). An IP PIN is a six-digit number from the IRS that confirms your identity. It can help identify you if someone commits tax fraud using your Social Security number. The IRS provides your IP PIN online when you first opt in and then mails a new one each December.
– Know how the real IRS will contact you. The IRS will never email, text or contact you on social media to request personal or financial information. It most likely communicates through postal mail, though in some cases it may call or visit after first reaching out by mail. Watch for bad grammar and odd punctuation, which could be signs of a scam. If you are unsure whether you’re talking with a scammer, stop communication and contact the IRS directly to confirm.
– Know how scammers will ask you to pay. The IRS will never demand immediate payment, require a specific form of payment or ask for credit card numbers or bank information over the phone. Never pay anyone asking for cryptocurrency, a wire transfer or a gift card.
– Use secure tax filing websites. Make sure you are accessing the real IRS website or other tax filing site by checking that the URL is spelled correctly. Look for the lock symbol to the left of the URL, which indicates your connection is secure.
– Protect your tax information. Store tax documents in a secure location at home or on a password-protected computer. As a general rule, don’t give out your Social Security number unless absolutely necessary. Research tax preparers thoroughly before sharing personal information. Know the signs of fraud. If the IRS informs you that your return has already been filed or that you received wages from an employer you don’t recognize, someone may have committed tax fraud against you. Visit an IRS office as soon as possible to resolve the problem.
– Report scams. If you think you’ve encountered a tax scam or identity theft, report it to the IRS, file a complaint with the Federal Trade Commission or report it to BBB Scam Tracker.
