Tax Season Scams:
How to Protect Yourself and Your Business
By Natalie Demple, CyberWyoming with assistance from AI
Tax season is stressful enough, and criminals know it. Every year, they ramp up schemes designed to steal money, personal information, and sensitive financial data. From phishing emails to fraudulent tax returns, scams target both individuals and businesses. Understanding the threats and knowing how to protect yourself is essential.
Understanding Tax Season Scams
The IRS recently released its Dirty Dozen list of tax scams for 2026, highlighting the most prevalent and evolving tax scams. According to the IRS Chief Executive Officer Frank J. Bisignano, “thieves continuously adjust the pitches they use to take advantage of honest taxpayers”. These schemes range from phishing emails to misleading tax advice and can result in identity theft, fraudulent refunds, or severe penalties.
Here are the 12 key tax scams for 2026:
Criminals send messages with alarming language and QR codes, attempting to steal personal information. The IRS warns: never click unsolicited links or open unexpected attachments.
Spoofed caller IDs and AI-generated voices are used to intimidate taxpayers. The IRS stresses that it typically contacts taxpayers first by mail, never demands immediate payment, or threatens arrest.
Scammers exploit tragedies to collect donations or personal data. Only donations to qualified IRS-recognized nonprofits are deductible.
Viral “tax hacks” may encourage false filings, leading to audits, penalties, or delayed refunds.
Criminals may try to gain unauthorized access during account setup. Always create accounts directly on IRS.gov
Fraudulent claims using Form 2439, sometimes linked to fake or well-known organizations, are on the rise.
Misleading offers on social media can lead to improper filings.
Preparers who refuse to sign returns or provide a PTIN are a major red flag. Taxpayers remain legally responsible for what is filed.
Inflated appraisals of donated property or “syndicated” easements promise tax savings that may not exist.
Filing fabricated wage or withholding information to claim larger refunds can trigger audits and penalties.
Emails posing as clients or requests for documents may contain malicious attachments.
Scammers overpromise on tax debt resolution and charge high fees.
Red Flags to Watch For
According to the IRS, common warning signs of tax scams include:
Big payday promises: Offers that sound too good to be true usually are.
Threats or pressure: Scammers may claim arrest, deportation, or fines to intimidate victims.
Suspicious website links or attachments: Check URLs carefully; IRS communication always comes from IRS.gov.
Unusual payment methods: The IRS never requests gift cards or prepaid debit cards.
Unexpected requests for sensitive information: Never share Social Security numbers, bank details, or login credentials via email, text, or social media (IRS, Recognize Tax Scams and Fraud).
Understanding these red flags is just the first step. Taking proactive measures to safeguard your personal and business finances is equally important. Below are key strategies for protecting yourself and your business during tax season.
The National Cybersecurity Alliance provides several actionable tips for individuals:
File early – Filing as soon as you have your documents reduces the risk of fraudulent returns using your Social Security number.
Use an IRS Identity Protection PIN (IP PIN) – This six-digit code prevents unauthorized filing and is available to anyone via their online IRS account.
Enable multifactor authentication (MFA) – Add extra security to IRS accounts, tax software, and financial accounts.
Verify IRS contact methods – IRS typically initiates contact via mail, not email, text, or social media.
Secure your tax preparer’s practices – Ask how they protect client data, use encryption, and manage access.
Exchange documents securely – Use encrypted portals or secure file-sharing services rather than standard email.
Back up tax records – Keep both physical and digital copies of returns and supporting documentation.
Small businesses are particularly vulnerable during tax season. Criminals may target:
Payroll systems and employee Social Security numbers
Business tax IDs and banking accounts
Vendors and contractors via Business Email Compromise (BEC)
Key steps from the National Cybersecurity Alliance for businesses include:
File early and monitor accounts – This reduces fraud exposure and allows early detection of unusual activity.
Use MFA on all accounts – Especially payroll software, accounting platforms, and cloud services.
Secure devices and networks – Maintain antivirus software, firewalls, and encrypted document portals.
Back up critical tax and financial data – Keep encrypted cloud backups and secure paper copies.
Train employees – Educate staff on phishing and suspicious emails.
Watch for BEC scams – Fraudsters may impersonate executives, vendors, or IRS-related instructions.
Share tax documents securely – Avoid regular email; confirm your tax preparer uses strong cybersecurity practices.
Develop a simple security plan – Include steps for prevention, detection, and recovery, and keep IRS contacts handy.
For micro-businesses with limited or no IT staff, structured support can make all the difference. Programs like our Made Safe™ Cybersecurity Training Program provide personalized, one-on-one guidance to reduce cyber risk and help you complete these cybersecurity steps.
The program emphasizes hands-on, achievable steps, with just 4–6 hours per month of work guided by experts, making cybersecurity practical even for businesses without dedicated IT teams.
For more information, visit cyberwyoming.org/programs/cyber-training/ or email info@cyberwyoming.org to inquire about scholarships and the name-your-price option.
Reporting Resources
Submit suspected tax or IRS-related scams: irs.gov/help/tax-scams
- Report scams to CyberWyoming at phishing@cyberwyoming.org to have it included anonymously in our weekly Hacker’s Brief.
Prompt reporting protects taxpayers, businesses, and the broader community from evolving tax scams. Knowledge and preparation are your best defenses against tax fraud.
