Posted On: February 4, 2026 by Austin Bank in: fraud
What is an income tax scam?
An income tax scam is a fraudulent scheme where criminals impersonate tax authorities like the IRS or trick individuals into providing sensitive personal information such as their social security number, full legal name, bank details, credit card numbers, or history of their financial transactions. These scams are often timed in order to come across as very realistic and usually occur during tax season.
How IRS Refund Check Scams Work
Scammers use various methods to carry out IRS refund check scams, including:
1. Fake Checks Sent in the Mail
Scammers might send a fake IRS refund check that looks real. Afterward, they contact the recipient, saying the IRS sent too much money by mistake. They demand the "extra" money be sent back quickly, often using a method like a wire transfer, a transfer app/service, or a prepaid card, which can’t be undone. The taxpayer loses money when the check bounces.
2. Phishing Emails and Phone Calls
Sometimes, scammers contact people by email or phone, pretending to be from the IRS. They say there’s a problem with the refund and ask for bank details or Social Security numbers to fix it. They use this information to steal identities or empty bank accounts.
3. Fake Online Refund Portals
Scammers may send you to fake IRS US Treasury websites that look real. These sites ask for personal information to process your refund. Always make sure an official website ends in ".gov" before entering any details. This indicates that the site is truly government-managed.
How to protect yourself:
Here is a list of things a tax scammer will do but The IRS will never do:
- Call, text, or email you and demand immediate payment.
- Demand payment without any chance to appeal or question the amount due.
- Threaten to have you arrested.
- The IRS does not accept payments by gift cards.
How to Report Income Tax Fraud/Scams?
If you are unsure that the person calling you is from the IRS office, hang up and contact the U.S. Treasury Inspector General for Tax Administration on their toll-free hotline: 1-800-366-4484, or visit treasury.gov/tigta/.
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