Scammers don't need to hack the IRS to steal your money. They just need to convince you they're the IRS. Every year, thousands of taxpayers and business owners receive convincing emails, text messages, phone calls, and social media messages designed to create panic and trick them into handing over personal or financial information. The good news? Once you know how the real IRS communicates, these scams become much easier to spot.
What the IRS Will Never Do
One of the easiest ways to spot a scam is by knowing how the IRS actually communicates. Here are a few things the IRS simply won't do:
- Initiate contact via email, text message, or direct message on social media– These messages often use common baiting tactics, such as warning of an “urgent” tax bill, promising a surprise refund, or claiming you’re eligible for special tax credits or stimulus payments– all designed to convince you to click a fraudulent link that leads to a phishing site.
- Leave pre-recorded messages– Also known as “robocalls,” these pre-recorded messages often include threats of arrest or other severe consequences if you don’t call back immediately to make a payment or provide personal information.
- Ask for payment in the form of a pre-paid store card or gift card– These payment methods are preferred by scammers because they are hard to trace and almost impossible to reverse. The IRS accepts payments made directly from your bank account, a debit or credit card, or a mailed check or money order.
Some of these warning signs may seem obvious, but phishing tactics have become so advanced that scammers can now spoof caller ID to make it look like the call is coming directly from the IRS.
What the IRS Will Do
Here's what you should expect from a legitimate IRS communication:
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- Send official letters and notices– The first way the IRS will contact you will always be by mail. To check a notice’s legitimacy, you can log into your IRS online portal and see if it appears in your file.
- Call you directly– Agents may call for something simple like confirming an appointment, but only after they’ve sent you an initial letter– and they definitely won’t call to threaten arrest.
- Have an authorized collection agency call you– Again, this will only happen after you and your representative have received an official notice from the IRS via mail.
How to Protect Yourself From IRS Scams
Scammers are getting better at what they do, and some of these scams are incredibly convincing. If something doesn't feel right, trust your instincts. Before you click a link, return a phone call, or hand over personal information, take a minute to verify that the communication is actually coming from the IRS.
- Don’t click any links.
- Don’t call the number the robocall gave you.
- Don’t walk to the convenience store down the street to buy a gift card.
In time of doubt, go straight to the source:
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- Visit IRS.gov to log into your secure account.
- Use their official customer service number to verify any suspicious notice.
- Report phishing or scam attempts to: phishing@irs.gov.
If they suspect you’ve been a target of a potential scam, they will direct you on exactly where and how to report it. You might spend a few extra minutes on hold, but it sure beats the hours you’d spend talking to a fraud investigator.
Stay Sharp. Stay Safe.
Look, scammers are getting better every year. They know exactly what buttons to push to cause fear, urgency, and confusion. That's why I tell clients to assume every unexpected call, text, or email claiming to be from the IRS is fake until you prove otherwise. Slow down, think it through, and never let someone pressure you into making a financial decision on the spot.
One of the easiest ways to stay ahead of these scams is to review the IRS's annual Dirty Dozen list. Every year, the IRS highlights the latest scams targeting taxpayers and business owners, from phishing emails and fake tax preparers to social media impersonation and Employee Retention Credit schemes. As these scams evolve, so should your awareness.
Take a few minutes to review the list every year. It's one of the simplest ways to protect your business, your personal information, and your hard-earned money.
Business Owners: Stay Ahead of Evolving Tax Scams
If you're a business owner, don't assume you're flying under the radar. In many cases, you're exactly who scammers are looking for. They know businesses have access to money, employee information, and tax records, and they'll use every trick they can to get it.
Common Tax Scams Targeting Business Owners
1. IRS Impersonation Calls
Fraudsters may pose as IRS agents, calling to threaten arrest or the suspension of your business license unless you pay immediately. These threats are designed to scare you into compliance, but the IRS will never demand immediate payment or threaten you over the phone.
2. Fake Tax Preparers
Some scammers disguise themselves as professional tax preparers to gain access to your business’s financial records. Before hiring a tax pro, confirm their IRS Preparer Tax Identification Number (PTIN) and check their credentials.
3. W-2 Phishing Attacks
Cybercriminals frequently target business owners and HR departments with emails requesting employee W-2 forms. This is a red flag. Always verify such requests through secure, internal channels before responding.
4. Employee Retention Credit (ERC) Scams
Many small businesses have been misled by third parties promising easy access to ERC funds. In some cases, companies are encouraged to file false claims—potentially leading to IRS penalties. Only rely on qualified professionals and consult the IRS’s official ERC guidelines.
How to Protect Your Business
1. Educate Your Team
Train your employees on how to recognize suspicious emails, calls, and messages. Every team member should understand the red flags of phishing and phone scams.
2. Secure Sensitive Data
Implement robust data protection protocols. Limit access to tax and payroll information to only trusted, authorized personnel.
3. Verify All IRS Communications
The IRS will always initiate contact via official mail. Not email, text, or social media. If you receive a message claiming to be from the IRS, log in to your IRS Online Account or call the agency directly to verify.
4. Keep Tabs on Your Information
Regularly log in to your state’s business portal and verify that your company’s information, like your registered agent, business address, and officers, has not been tampered with.
5. Maintain Your Privacy
Be cautious about what personal information you include in your public filings. If you’re forming an LLC or updating your business info, consider strategies to hide your home address from the public. Use proper structuring and privacy tools from the start. Mark breaks this down in his guide on how to protect your personal info when starting an LLC.
Identity theft doesn't stop with individuals. Scammers are increasingly targeting businesses, and the consequences can be even more expensive. They may try to change your business records with the state, update your mailing address, or even list themselves as an officer of your company, all to gain access to your financial accounts or sensitive information.
The Bottom Line
Tax scams are becoming more sophisticated every year, but most of them rely on the same tactic: getting you to act before you stop and think. The best defense is knowing how the IRS actually communicates, recognizing the warning signs, and taking a few extra minutes to verify anything that seems suspicious. A little caution today can save you thousands of dollars, protect your identity, and prevent months of frustration trying to undo the damage.
Protecting yourself from tax scams starts with good information, but long-term financial security requires more than that. Whether you're protecting your personal finances or managing a growing business, having the right team behind you can make all the difference. My team at Main Street Business Services can help business owners stay compliant with ongoing entity maintenance and support, while my team at KKOS Lawyers can help you protect your assets and build a legal strategy that safeguards everything you've worked so hard to build. Book a free call today and let us help you protect what matters most.
