5 Tax Scams to Watch for This Filing Season: High-pressure tactics, official-sounding messages and other tricks are potentially bedeviling taxpayers

Adults of all ages are targets, and about 21% lost over $1,000 or more to such scams, a recent McAfee survey finds. Ultimately, nearly 1 out of 4 people in the U.S. say they or someone they know has lost money to a tax scam, the survey said.

“Fraudsters prey on people’s anxiety and confusion about filing their tax returns and what is legitimate,” says Jeremiah Barlow, chief solutions officer at Mercer Advisors.

Here are five common tax scams—and what victims can do to get recourse.

1. IRS impersonations

Scammers are increasingly sending realistic-looking emails, texts or phone calls about account issues that appear to be from the IRS, state tax agencies or tax-software companies. Advances in artificial intelligence allow them to clone voices or create fake videos of IRS agents or even family members to trick victims. AI also has improved the quality of the content in phishing emails and phony text messages, making them appear authentic.

These messages can claim you owe back taxes and threaten penalties or immediate arrest. Their aim is to get taxpayers to provide Social Security numbers and banking information by clicking links to fake “IRS portals” that install malware or steal personal data.

Note: The IRS doesn’t initiate contact by email, text or social media to request personal or financial information, or threaten arrest.

Once swindlers get your Social Security number and the first four letters of your last name, they can submit a bogus tax return that maximizes a refund they will claim for themselves. The real taxpayer won’t know this has happened until they get a rejection when they submit their legitimate return to the IRS, or a letter from the IRS saying their Social Security number has already been used, say tax experts.

To spot red flags, be aware that AI-generated emails and texts are often grammatically perfect but appear too polite, rigid or repetitive, and lack personal context. Many have links that look legitimate but when hovered over show a suspicious URL. Look out for any unexpected message asking you to verify passwords, Social Security numbers or one-time passcodes. If you get a call that is suspicious, listen for robotic voices or delays before a voice responds. Both could be signs of trouble.

Recourse: You must file a paper 1040 tax return and attach it to Form 14039 Identity Theft Affidavit. Also contact all credit-rating firms to freeze your credit file and report the scam to the Federal Trade Commission.

2. Phony refunds or credits

There are bogus tax professionals on TikTok, Instagram and other social-media platforms claiming they can help you secure large refunds when they help you file your tax return, says Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals.

According to the IRS, these scammers use official-sounding language and give fraudulent advice urging taxpayers to claim fake tax credits or credits they aren’t eligible for. Their goal: to take a percentage of the fraudulent tax credit or refund before the IRS catches the error.

These actions can lead to an IRS audit, penalties and criminal charges, O’Saben warns.

Any social-media posts that claim everyone qualifies for certain tax credits or promises of fast refunds with minimal documentation are potential red flags, he adds.

Recourse: Freeze all bank and credit-card accounts, reverse transactions and stop unauthorized transfers. Then use IRS form 14242 Report Suspected Abusive Tax Promotions or Preparers to report abusive tax promoters.

3. Ghost tax preparers

Ghost tax preparers are often unlicensed individuals who complete tax returns for a fee but refuse to sign them, leaving taxpayers responsible for false information. They often invent income or claim fake deductions to inflate refunds, leaving the taxpayer liable for fraud.

Many charge fees based on a percentage of your refund check and the methods they accept for payment can be suspicious. Some demand cash payment without providing a receipt, while others have the refunds directed to their own bank account instead of the taxpayer, says Miklos Ringbauer, a certified public accountant in Los Angeles.

According to Andy Phillips, vice president of the Tax Institute at H&R Block, taxpayers should check the license and other credentials of any tax preparer on the IRS Directory of Federal Tax Preparers and make sure they have a preparer tax identification number, or PTIN, which is required to be included on your federal tax return.

Also be sure to review your tax return before signing to make sure it isn’t blank, incomplete or have false claims. Once you sign it you are liable, O’Saben says.

Recourse: Use the IRS Return Preparer Compliant Form 14157 to file a complaint about a tax-preparer fraud and report the tax scam to the Federal Trade Commission. If the preparer filed your return without permission, changed numbers, stole your refund or committed fraud, you may also want to submit Form 14157‑A, which is a sworn statement to report issues like diverted refunds or unauthorized, fraudulent tax returns.

4. Debt-forgiveness scams

Tax-debt forgiveness or IRS settlement scams are increasing, targeting taxpayers who owe money to the IRS for a variety of reasons. These may include back income taxes, penalties related to unfiled tax returns, unpaid self-employment taxes, or audit assessments.

Many use robot calls to lure victims, and some are unscrupulous tax-resolution firms that advertise on radio, TV and other media platforms.

Typically, they promise guaranteed IRS debt forgiveness and settlements, charging upfront fees without delivering debt relief. They use high-pressure tactics to get victims to sign immediately to avoid IRS levies, wage garnishments and collections actions, says Ringbauer.

These scammers frequently abuse the IRS Offer in Compromise program, which is a tax-debt relief option for taxpayers who can’t pay their full tax liability due to economic hardship. You must be in full compliance with tax filings and not in bankruptcy to be eligible.

Any firm that guarantees it can settle your tax debt “for pennies on the dollar” for an upfront fee is a red flag.

Recourse: You can restart the debt-reflief process with the IRS by filling out Form 656 Offer in Compromise along with Form 433-A Collection Information Statement for individuals. If you are accepted, you must file your taxes on time and be compliant with payment requirements for the next five years or the tax debt will be reinstated.

5. Charity schemes

Many scammers pose as legitimate charities around tax time to solicit donations. They often claim donations are required for certain tax benefits or suggest donations can reduce taxes dollar for dollar, which isn’t true since charitable deductions reduce taxable income.

These scammers often target high-income taxpayers looking for deductions and steal money and personal information.

According to O’Saben, they often claim they are working with the IRS or use names that sound similar to legitimate charities. They pressure people to make immediate donations via gift cards, wire transfers, or cryptocurrency which are hard to trace.

They may ask for Social Security numbers, credit-card details and other personal information. They often call from a suspicious phone number or use a spoof number to conceal their identity. Some even create fake websites to mimic real charities.

To guard yourself against fraud, research any charity before making any donation and donate only with a check or credit card, never with a gift card or wire transfer. You can verify a charity at the IRS Tax-Exempt Organization research tool. Any donation made must be made to a qualified 501(c)(3) organization to be deductible.

Recourse: Report the incident to the Federal Trade Commission and the IRS.