Organizing your documents and understanding the often perplexing tax terminology can be a challenge during tax season. The presence of scammers, fraudsters, and misinformation adds to the dilemma and increase stress levels.
Staying informed about fraudulent schemes can help you avoid bad experiences and shield you from potential IRS penalties, interest, and, in some cases, criminal charges if you fall victim to a scam.
Here are three major tax threats you should be aware of:
Text Scams
This tax season, one common scam involves consumers receiving a text message that claims they are eligible for a $1,400 stimulus check purportedly from the IRS, stating they qualify for an ‘Economic Impact Payment’. This message often contains a link to a bogus IRS website that requests sensitive information. Do not be deceived! As of 2025, the IRS is not distributing any stimulus checks. Remember, the IRS will not contact individuals via text without first obtaining consent. They only text or email with prior approval. If you receive an unexpected or unsolicited text, disregard it and do not click on any links.
Misleading Social Media Advice
The IRS warns taxpayers to be cautious of misleading advice circulating on social media, noting that false tax information is an increasing concern. Some posts encourage individuals to ‘outsmart the system’ by misrepresenting and incorrectly completing tax documents. This could lead to significant tax problems and serious legal consequences! If you have any tax-related queries or issues, consult the IRS or a tax professional.
Misinformation About Offers in Compromise (OIC):
An Offer in Compromise (OIC) is a legitimate option that allows taxpayers to negotiate with the IRS to settle their tax debts for less than the total amount owed. It is specifically designed for those who cannot pay the full tax liability without suffering financial hardship. Unfortunately, some scammers exploit this program. These fraudsters might contact taxpayers claiming a fee is required to apply for the program or assuring them they can settle their debt for a fee. In truth, there is no application fee associated with this program. While not every taxpayer will qualify, it is free to determine your eligibility using the IRS’s Offer in Compromise Pre-Qualifier Tool.
Always remember that the IRS will never request credit or debit card information over the phone. Anyone attempting to get you to pay via gift card or cryptocurrency is a scammer! The IRS only processes payments in U.S. dollars.
For more information on tax scams and threats, be sure to check out the IRS’s ‘Dirty Dozen’ list for 2025.
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