Tax scams through the years and what to know this year

Each of these scams relies on confusion around tax rules and filing systems. Understanding how they work can help you spot red flags before submitting your return this year.

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Stimulus payments were also targeted. Scammers filed early tax returns using stolen personal data to claim Recovery Rebate Credits or redirect refunds. When legitimate filers later submitted their returns, some were rejected because a return tied to their Social Security number had already been processed. Federal agencies, including the FBI, warned of high levels of unemployment fraud during this period. The IRS also encouraged taxpayers to sign up for an Identity Protection PIN, which adds an extra layer of verification when filing.

Worried your SSN may have been stolen? Many tax fraud cases begin with data pulled from breaches. You can run a free scan with our top Identity Theft Protection pick to check whether your information appears in known data-leak records. The scan looks for matches tied to your email address and shows the results in real time. See my tips and best picks on Best Identity Theft Protection at Cyberguy.com.

In many flagged cases, ghost preparers inflated tax credits, fabricated income figures or altered withholding amounts to generate larger refunds. Some charged fees based on the size of the refund, which created an incentive to push questionable claims rather than follow tax rules.

By 2025, misleading tax advice began circulating widely on short-form video platforms and social media. Some posts encouraged people to file Form 4136 to claim a fuel tax credit for gasoline used in personal vehicles. The IRS says this credit applies only to certain business and off-highway uses, not everyday driving. Filing the form improperly can trigger an IRS review.

Other posts instructed taxpayers to modify wage or withholding numbers inside consumer tax software to inflate refund amounts. The IRS has repeatedly warned that taxpayers remain responsible for the accuracy of their returns, regardless of where the advice originated. Filing incorrect income information or claiming unsupported credits can delay refunds and potentially lead to penalties. 

The agency emphasizes that it does not initiate contact through email, text messages or social media to request sensitive information. The 2026 list also includes ghost preparers and misleading tax advice shared online, including content that pushes improper credit claims. Identity theft refund fraud remains part of the enforcement picture, with criminals filing returns using stolen data before legitimate taxpayers do.

A few simple habits can reduce your risk during filing season.

Identity theft services scan known data breach records for matches tied to your email address, Social Security number and other identifiers.

These services also monitor credit files across the three major U.S. credit bureaus and alert you to new accounts, hard inquiries or other changes to your credit report. If suspicious activity appears, members receive real-time alerts as soon as it is detected.

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Anyone paid to prepare a tax return must sign it and include a valid Preparer Tax Identification Number. Avoid preparers who promise unusually large refunds or refuse to sign your return.

The IRS does not contact taxpayers through email, text messages or social media to request personal information. Messages claiming to be from the IRS asking for sensitive data are usually scams.

Identity thieves often attempt to file fraudulent tax returns before the real taxpayer does. Filing earlier in the season can reduce that risk.

This six-digit code adds an extra layer of security to your tax return. Without it, criminals cannot file a return using your Social Security number.

Tax scams change every year, but the pattern stays the same. Criminals look for confusion around tax rules, new programs or trending online advice and use that uncertainty to push fraudulent claims or steal personal information. The best protection is slowing down before you file. Verify tax advice through trusted sources such as the IRS, work only with legitimate tax preparers and keep a close eye on your personal data and credit activity. A little caution during filing season can help prevent months of headaches if your return gets flagged for fraud.

Have you ever received a suspicious tax message, questionable filing advice online or discovered a tax return filed in your name? Let us know by writing to us at Cyberguy.com.

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