Yes, tax refund scams are common and they target people in several ways
Tax refund scams are real and they happen in two main directions. Scammers either impersonate the IRS to steal your money and personal information, or they pose as tax preparers and keep your refund for themselves. The IRS does not initiate contact by email, text, or social media — only by mail. If someone claiming to be from the IRS contacts you first through any other channel, it is a scam.
The second type happens when you use a tax preparer who is not legitimate. They file your return, claim your refund will go to a temporary account they control, and then disappear or tell you there is a problem and you need to pay a fee to release it. By the time you realize what happened, the refund has been moved or spent.
Both types cost people real money and real time. Knowing what these scams look like and how they work is the fastest way to avoid them.
Key Takeaways
- The IRS never contacts you first by phone, email, text, or social media — only by mail — so any other contact claiming to be the IRS is a scam.
- Scammers posing as tax preparers file returns in your name, claim your refund, and either keep it or demand a fee to release it.
- Legitimate tax preparers have a Preparer Tax Identification Number (PTIN) that you can verify on the IRS website.
- If you think you have been scammed, report it to the IRS at irs.gov/report and to the Federal Trade Commission at reportfraud.ftc.gov.
- You can check the status of your actual refund anytime using the IRS Where's My Refund tool without giving anyone money or personal information.
How IRS impersonation scams work
Scammers send emails, texts, or make phone calls claiming to be the IRS. They say you owe money, have a problem with your return, or that a refund is waiting but there is a hold on it. They ask you to click a link, call a number, or provide your Social Security number, date of birth, bank account details, or a PIN to "verify" your identity or "unlock" your refund.
The goal is to steal enough information to file a fake return in your name, claim your refund before you do, or drain your bank account. Once they have your Social Security number and date of birth, they can open accounts, apply for credit, or file taxes on your behalf.
These scams work because the IRS is a real authority that people fear, and scammers know that. They use official-sounding language, fake case numbers, and sometimes even spoof the IRS phone number so it appears to come from a .gov address. None of that makes them real.
How tax preparer scams work
A tax preparer scam usually starts when someone offers to prepare your taxes for a low fee or promises a larger refund than other preparers quoted. They ask for your documents — W-2s, 1099s, receipts — and file your return. Then they tell you the refund will be deposited into a temporary account they control, or that there is a "hold" on the refund and you need to pay a release fee.
What is actually happening: they filed the return correctly or inflated it to make the refund larger, but they directed the refund to go to their own bank account or a prepaid card they control. They keep the money or demand you pay them a percentage to "release" it. By the time you contact the IRS to ask where your refund is, weeks or months have passed and the money is gone.
Some scammers also file returns with false deductions or credits to inflate the refund amount, knowing the IRS will catch it later. You end up owing money when the IRS audits the return, and the preparer is unreachable.
Red flags that signal a scam
If someone claiming to be from the IRS contacts you by phone, email, text, or social media, it is a scam. The IRS initiates contact only by mail, and only after you have already received a notice. They do not call you out of the blue.
If a tax preparer asks you to sign a blank return, refuses to give you a copy of what they filed, or directs your refund to their account instead of yours, stop working with them immediately. A legitimate preparer signs the return with their PTIN, gives you a copy before filing, and deposits your refund into the account you specify.
If someone offers to "get you a bigger refund" or guarantees a specific refund amount before looking at your documents, that is a red flag. Refund amounts depend on your actual income, withholding, and tax situation — no one can promise a number without seeing your records.
If you are asked to pay a fee upfront to "unlock" a refund, release a hold, or verify your identity, it is a scam. The IRS does not charge fees to process refunds or verify identity.
How to verify a tax preparer is legitimate
Before you hand over documents or money, check whether the preparer has a Preparer Tax Identification Number (PTIN). Every tax preparer who is paid to prepare returns must have one. You can search for a PTIN on the IRS website at irs.gov/tax-professionals/find-a-tax-professional.
Enter the preparer's name or PTIN and the search will tell you whether they are registered. If they do not have a PTIN or the number does not match their name, do not use them.
You can also ask whether they are an Enrolled Agent, CPA, or attorney — these are credentials that mean they have passed IRS exams or have legal standing. A preparer does not need these credentials to file taxes, but they are a sign of training and accountability. If a preparer cannot or will not tell you their credentials or PTIN, that is a reason to find someone else.
What to do if you think you have been scammed
If you received a suspicious email, text, or call claiming to be from the IRS, forward it to phishing@irs.gov. Do not click any links or call any numbers in the message.
If a tax preparer took your refund or filed a return without your permission, contact the IRS at 1-800-829-1040 and tell them what happened. They can place a hold on your account and investigate. You can also file a complaint with the IRS at irs.gov/report.
Report the scam to the Federal Trade Commission at reportfraud.ftc.gov. The FTC collects complaints and shares patterns with law enforcement. Your report helps them track scammers and warn others.
If money was taken from your bank account, contact your bank immediately and report the fraud. Ask them to reverse the transaction if it is still within the window to do so, usually 60 days.
How to check your refund status without giving money or information
The IRS provides a free tool called Where's My Refund at irs.gov/refunds. You can check the status of your refund anytime using only your Social Security number, filing status, and the exact refund amount from your return. You do not need to pay anyone, call a number, or provide a PIN.
The tool updates once per day and tells you whether the IRS has received your return, is processing it, has approved it, or has issued it. If your refund has been issued, it tells you the date and the method — direct deposit or check.
If you filed your return and it has been more than 21 days, you can check the status. If the tool says your refund has been issued but you have not received it, contact the IRS at 1-800-829-1040. Do not contact anyone else or pay anyone to help you.
Frequently Asked Questions
Can the IRS call me about my refund?
No. The IRS does not call, email, or text people about refunds. They only mail official notices. If someone calls claiming to be from the IRS, hang up. It is a scam.
What should I do if a tax preparer asks me to sign a blank return?
Do not sign it. A legitimate preparer fills in all the information, shows you the completed return, and asks you to review and sign it. If they ask you to sign before the return is complete, leave and find a different preparer.
Is it safe to give my Social Security number to a tax preparer?
Yes, if they are legitimate. A tax preparer needs your Social Security number to file your return. But verify their PTIN first, ask for a copy of the completed return before they file it, and make sure your refund is directed to your own bank account, not theirs.
What if I already gave a scammer my Social Security number?
Contact the IRS at 1-800-829-1040 and tell them your Social Security number may have been compromised. They can flag your account and watch for fraudulent filings. You can also place a fraud alert with the three credit bureaus (Equifax, Experian, TransUnion) by calling 1-888-397-3742.
Can I get my money back if I was scammed?
It depends on the type of scam and how quickly you report it. If money was taken from your bank account, your bank may reverse it within 60 days. If a preparer kept your refund, the IRS can investigate and may recover it, but the process takes time. Report it to the IRS and the FTC as soon as you realize what happened.