Tax Season Scam Alert: What's Changed and What You Need to Know
Tax season brings enough stress without worrying about scammers, but unfortunately, they're working harder than ever. We've covered the topic before, but the landscape keeps evolving in ways that make these threats more dangerous and harder to spot.
The Scary New Reality: AI-Powered Scams
The biggest change is the use of artificial intelligence. Scammers can now clone voices using just a few seconds of audio from social media posts.[1] You might get a frantic call from someone who sounds exactly like your grandchild, claiming they're in jail for tax fraud and need money immediately. These scams are frighteningly convincing because the voices sound real. We never thought a day would come where we’d say: “Don’t you miss those old, fake sounding robocalls?”, at least you could be sure those were fake!
Similarly, scammers are using AI to create flawless emails and texts that look like they're from the IRS. Gone are the days of spotting obvious typos and grammar mistakes. Watch for any communication that demands urgent action or creates a sense of panic, especially if it arrives unexpectedly.
Phone Scams Are More Convincing
The classic IRS impersonation scam is still around with a new twist. Scammers use AI to mimic official sounding agencies and demand immediate payment through gift cards, wire transfers, or cryptocurrency.
It’s always worth reiterating this: The IRS will always contact you by mail first, never by phone, text, or email demanding immediate payment.[2] While the IRS may follow up by phone after mailing you a notice, they will never initiate contact demanding money over the phone. They will give you the opportunity to question or appeal any amount owed. They will never threaten arrest or demand payment using gift cards or wire transfers.[3] If someone is pressuring you to act immediately, it's a scam.
Bad Advice on Social Media
TikTok and other platforms have become breeding grounds for terrible tax advice. People are promoting nonexistent credits like a fake "Self-Employment Tax Credit" that promises up to $32,000.[4] This credit doesn't exist. Just because a video has thousands of likes doesn't make it accurate. Always consult a trusted tax professional rather than following advice from influencers.
Pennsylvania Specific Scams
In Pennsylvania, residents have been receiving fraudulent texts claiming the Department of Revenue owes them a refund.[5] Similar fake letters threaten property seizure unless immediate payment is made. Red flags include letters that reference the "State of Pennsylvania" rather than the "Commonwealth of Pennsylvania" and any request for payment via gift cards.[6] Always verify by calling 1-888-PATAXES or checking the official myPATH portal.
Protect Yourself
Think about getting an Identity Protection PIN from the IRS. It’s now available to anyone with a Social Security number.[7] It takes just a few minutes to sign up through IRS.gov and provides an extra layer of security when filing your return.
Stay vigilant this tax season, and if something feels off, trust your instincts and verify before taking action.