Top 10 IRS Scams You Need to Know and How to Avoid Them in 2025

Here at InvestoDock, we know how scary it can be to get a message claiming to be from the IRS — especially when it threatens legal action. Before you panic or pay a cent, read this. This guide will show you how to spot IRS scams, understand how scammers operate, and most importantly, how to avoid IRS scams before they cost you money or personal information.

How IRS Scammers Operate: Modern Tactics You Need to Know

Let me tell you a quick story — a buddy of mine got a call last year from someone claiming to be from the IRS. The voice was firm, official, and oddly convincing. The caller even knew his full name and partial Social Security number. Long story short, he almost wired $2,000 before realizing it was a scam. That moment hit me hard. These scammers are evolving fast — and if we’re not careful, we’re next.

To avoid IRS scams, the first step is understanding how IRS scams work. Scammers use a variety of delivery methods to bait their victims:

• Phone Calls: They’ll spoof real IRS numbers, making caller ID display “IRS” or “Government.”
• Emails (Phishing): These often include official-looking logos and language, tricking users into clicking malicious links.
• SMS (Smishing): “You owe taxes, click here to resolve now” — a scary message, especially for someone half-asleep at 7 AM.
• Social Media DMs: Believe it or not, scammers now slide into your inbox pretending to be agents with urgent messages.

Then comes the impersonation. They’ll claim to be “IRS agents,” complete with fake badge numbers. Some even redirect you to fake IRS websites that look eerily real — I once clicked on one and didn’t realize it was fake until I saw the misspelled “Departement.”

To spot IRS scams, always remember: the IRS never threatens you over the phone, never demands gift card payments, and never initiates contact through email or social media.

“Knowledge is power — especially when someone’s trying to rob you blind.”

Who Is Targeted Most and Why

You’d be surprised who falls for IRS scams — and trust me, it’s not because they’re careless. Some groups are just more vulnerable than others, often because of fear, trust, or lack of experience.

Seniors are high on the list. My grandma once called me in a panic after getting a voicemail about “unpaid taxes.” Scammers know older adults may not be familiar with digital scams, and they often trust authority figures without question.

Immigrants are another common target. The threat of deportation or legal issues can push someone to act fast — even if it’s fake. Scammers use aggressive language, and often throw in words like “immigration hold” to intensify the fear.

Small business owners are overwhelmed already. When they get an email that looks like it’s from the IRS about back taxes or fines, they’re likely to react quickly to protect their business — and that’s exactly what scammers want.

And don’t forget students. They’re hit with “student tax” scams or fake refunds — and because many are filing taxes for the first time, they’re unsure what’s real and what’s not.

If you want to avoid IRS scams, teach your loved ones to pause, verify, and breathe before acting on any suspicious message. That’s how you spot IRS scams before they get you.

Watch also: IRS Failure to File Penalty Explained: Costs, Exceptions, and How to Avoid It

Top 10 IRS Scams to Watch for in 2025

Every year, scammers get sneakier. 2025 is already shaping up to be a wild ride, and if you don’t stay sharp, you might fall into one of these traps. I’ve seen some of these firsthand while helping friends sort out sketchy emails or suspicious tax advice.

1. Social Media Misinformation Scams: Facebook groups, TikTok clips, and even YouTube “financial experts” are spreading false info like “you don’t have to pay taxes if you’re under 30.” If it sounds too good to be true, it probably is.
2. IRS Account Sign-Up Scam: Got an email or DM saying you need to “verify your IRS account”? It’s a phishing attempt. The IRS doesn’t initiate contact this way.
3. Fake Charities: Disasters bring out the best in people—and the worst in scammers. They’ll ask you to donate using gift cards or wire transfers. That’s your red flag.
4. Fuel Tax Credit Fraud: Promoters promise you hundreds in fuel tax refunds — even if you don’t qualify. File a claim with false info? You’re the one who gets penalized, not them.
5. “Self-Employment Tax Credit” Schemes: Sounds great, right? Except the credit doesn’t exist. These scams target gig workers and freelancers desperate for a break.
6. Ghost Tax Preparers: These folks disappear after filing your taxes — no name, no signature. And when the IRS finds errors? You’re stuck holding the bag.
7. Fake Payment Plan Setups: If someone offers to “negotiate” your IRS payments but wants upfront fees, walk away. The IRS offers payment plans for free through their official site.
8. Offer in Compromise (OIC) Mills: You’ve seen the ads — “Settle your tax debt for pennies!” Many of these firms charge huge fees and get you nothing in return.
9. Phishing Emails for ‘New Client’ Recruitment: This one hit me directly — someone posed as a tax consultant asking for my info to “open a file.” Nope. Deleted.
10. Fake IRS Letters and Transcripts: These come by mail and look legit — until you notice the tiny errors and urgent threats. Always verify using the official IRS site.

To avoid IRS scams, always double-check any offer, letter, or email related to taxes. And if you want to spot IRS scams before they wreck your finances, remember this: The IRS doesn’t ask for payment in gift cards, doesn’t threaten arrests over email, and doesn’t contact you on Instagram.

Seriously — stay alert. Your future self will thank you.

Red Flags That Scream Scam: How to Spot Them

If there’s one thing I’ve learned after years of seeing people fall for IRS scams, it’s this: scammers follow a pattern. And once you know the red flags, it gets a lot easier to stay safe.

First off, watch how the scam reaches you. Suspicious communication methods are a huge giveaway. The IRS doesn’t call you out of the blue demanding money. They don’t DM you on social media or send shady emails with urgent subject lines. If you get a message like that — you need to spot IRS scams instantly and hit delete.

Then there’s the way they want you to pay. If someone tells you to send gift cards, cryptocurrency, or wire transfers, it’s a scam. Period. The IRS accepts payments only through official channels — never via Target gift cards. I once had a neighbor rush to a store ready to buy $500 in Apple cards for a “tax fine.” Thank God she called me first.

Another red flag? No official identification. Real IRS agents carry two forms of ID: an HSPD‑12 card and a pocket commission. If someone claims to be from the IRS but can’t show these, you’re not talking to the IRS — you’re dealing with a scammer.

To avoid IRS scams, slow down, verify everything, and trust your gut. When something feels off, it probably is.

What To Do If You Think You’re Being Scammed

It’s a gut punch when you realize you might’ve walked into one of those IRS scams. But don’t panic — what you do next matters most. I’ve helped a friend through this exact situation, and here’s the process we followed step-by-step.

1. Stop all contact: If you’re on the phone or replying to emails — hang up or log out. Don’t click anything, and definitely don’t send money or personal info.
2. Gather evidence: Take screenshots, save voicemails, and download any emails. This stuff is gold when it comes to reporting.
3. Report it ASAP: This is where most people freeze, but it’s easier than you think:

• TIGTA (Treasury Inspector General for Tax Administration): Report IRS impersonation scams directly at TIGTA’s website.
• FTC (Federal Trade Commission): Go to reportfraud.ftc.gov and file a complaint.
• Phishing Emails: Forward suspicious IRS-related emails to phishing@irs.gov.

If you’re quick, there’s a good chance you can avoid IRS scams before they damage your finances. And even if you’ve already given up info, reporting fast could help limit the fallout.

Always remember — the faster you act, the less power these scammers have over you. And the more you share your experience, the better we all get at spotting IRS scams before it’s too late.

Watch also: How to Avoid Capital Gains Tax When Selling Your Home: Full Guide for Homeowners

How to Protect Yourself Year-Round

If there’s one thing I’ve learned, it’s that protecting yourself from IRS scams isn’t just a tax season thing — it’s a year-round commitment. I got lax one summer and ignored a login alert from the IRS. Turned out someone had tried to access my account. Lesson learned.

Start by using ID.me securely. It’s the system the IRS uses to verify your identity online. Set up two-factor authentication and never, ever share your login info — even with someone claiming to be from the IRS. If it feels off, it probably is.

Next, check your IRS account regularly — not just during tax season. You can view payments, notices, and any activity. It only takes five minutes, and it’s saved me from missing things like an old refund and even spotting an unauthorized address change.

And please, if you’re going to hire someone to help with your taxes, make sure they’re credentialed. Stick with CPAs, enrolled agents, or licensed tax attorneys. A good tax pro can help you avoid IRS scams by flagging shady deductions and verifying any notices you receive.

Bottom line: To spot IRS scams before they catch you off guard, build habits now. Scammers don’t take breaks — and neither should your defenses.

Final Tips and Recap

If you’ve made it this far — you’re already ahead in the game of avoiding IRS scams. But here’s a quick refresher to keep things sharp in your mind.

• Do verify any IRS contact through your official IRS account.
• Do hire credentialed tax professionals only.
• Do report phishing emails to phishing@irs.gov.
• Don’t ever pay taxes via gift cards, crypto, or wire transfers.
• Don’t trust emails, texts, or social media DMs that claim to be from the IRS.

If something smells off, trust your instincts. Then take action. Report IRS impersonation scams to TIGTA and FTC as soon as possible.

When in doubt, step back, breathe, and spot IRS scams before they get to you.

Frequently Asked Questions

Are there any IRS scams going on?

Absolutely — IRS scams are happening year-round, not just during tax season. Scammers are constantly evolving their tactics, using fake emails, calls, and even letters to trick people into sending money or personal info. If someone contacts you out of the blue demanding immediate payment or threatens arrest, it’s a scam.

What is a legitimate way the IRS would contact you?

The IRS will never contact you via phone, text, or social media to demand payment. The most legitimate way the IRS communicates is by official mail. You can verify any notice by checking your secure online account at irs.gov. That’s the safest way to avoid IRS scams.

How do I know if an IRS notice is real?

A real IRS notice will have your full name, a notice number, and specific information about your tax situation. If something feels off — like typos, threats, or demands for unusual payment methods — stop and verify. You can also call the IRS directly or consult a trusted tax professional to spot IRS scams before acting.

Are there any tax scams going around?

Yes, and they’re getting more creative each year. In 2025, we’ve seen scams around fake refunds, fuel tax credits, and even fake “self-employment credits.” The key to staying safe? Stay informed, trust only official IRS channels, and when in doubt — don’t respond. That’s how you avoid IRS scams like a pro.