Top Tax Season Scams to Watch for in 2025 and How to Stay Safe

Tax season is here, and while many people are focused on filing returns and securing refunds, scammers are hard at work trying to take advantage of unsuspecting taxpayers. The 2025 tax season is expected to see a rise in fraudulent activities, making it crucial to stay informed and vigilant. Protect yourself and your loved ones by learning how to avoid tax scams, recognize red flags, and secure your personal information.

Why Tax Season Is Prime Time for Scammers in 2025

Tax season scams in 2025 are designed to exploit the stress and urgency often associated with filing tax returns. Scammers may impersonate IRS agents, pose as legitimate tax preparers, or send phishing emails that look like official communications. Their goal? To steal your sensitive personal information or trick you into paying money under false pretenses. Understanding how these scams work is the first step toward tax identity theft protection.

The Top Tax Scams You Need to Watch Out for This Year

1. Phishing Emails: Scammers send fake emails claiming to be from the IRS or tax software companies. These emails often include links to fraudulent websites designed to steal your login credentials or Social Security number.

2. Fake IRS Calls: IRS tax scam calls are a common tactic, with scammers threatening legal action or arrest if you don’t pay immediately. The IRS will never demand payment over the phone or threaten you in this way.

3. Refund Fraud: Scammers may file fraudulent tax returns in your name, claiming refunds and leaving you to deal with the aftermath. This form of tax identity theft can delay your legitimate return and compromise your financial accounts.

4. Social Media Tax Prep Scams: Beware of ads or posts on social media offering “fast refunds” or “guaranteed tax savings.” These scammers often request upfront payments or personal information, only to disappear with your money.

For more ways scammers are targeting taxpayers, check out our previous blog on other common scams to watch out for this year.

How to Spot the Red Flags of a Tax Scam

Protecting yourself from tax season scams in 2025 requires knowing what to watch for. Here are some common red flags:

• Unsolicited emails or phone calls asking for personal information, including Social Security or bank account numbers.

• High-pressure tactics, such as threats of legal action or immediate penalties.

• Requests for payment via money cards, gift cards, wire transfers, or cryptocurrency.

• Tax preparers who refuse to sign your return or provide their Preparer Tax Identification Number (PTIN).

If you encounter any of these warning signs, it’s best to stop communication immediately and verify the source independently.

Simple Tips for Protecting Yourself Against Tax Scams

1. Be Skeptical of Unsolicited Contacts: The IRS will never initiate contact via email, text, or social media. If you receive suspicious communication, do not respond. If you’re unsure whether you’ve received a legitimate IRS communication, check out this guide from the IRS on how to know if it’s really them.

2. Use Secure Platforms: File your taxes through trusted software or a verified tax professional. Avoid sharing sensitive information over unsecured channels.

3. Monitor Your Accounts: Regularly check your financial accounts and credit reports for unauthorized activity. Early detection is key to stopping tax identity theft.

4. Report Suspected Scams: If you believe you’ve encountered an IRS tax scam call or other fraudulent activity, report it to the IRS and your financial institution immediately.

How Member One Can Help You Stay Safe This Tax Season

At Member One, we understand how overwhelming tax season can be and we’re committed to helping you stay safe. Our members have access to resources designed to educate and protect against tax-related fraud. If you suspect you’re a victim of a tax scam, our team is here to guide you through the next steps, including securing your accounts and recovering from potential fraud.

Visit our website or contact us directly to learn more about how to avoid tax scams and safeguard your finances during the 2025 tax season.

By staying informed about tax season scams in 2025 and following these tips, you can file your taxes confidently and securely. And remember, vigilance is key—Member One is here to support you every step of the way.

This article is for educational purposes only. For personalized financial advice, it's best to speak with either a licensed tax advisor, financial advisor or an investment advisor.