Tax relief scams: what to look out for in 2025

How to identify tax relief scams

Several signs indicate that a tax relief company is not legitimate. The IRS warns of common signs, such as promises of a big payout. Avoid robocalls, emails and text messages with urgent messages demanding payments, and do not click any links that can leave your personal information vulnerable. Remember, all official links begin with “IRS.gov.” Here are other important tips to keep in mind:

• Initial contact by the IRS is made via mail — not by phone, text or email.
• The IRS does not leave pre-recorded voicemails.
• The IRS does not request payment information over the phone or text.
• The IRS never sends tax returns by email or text.
• The IRS will not visit your home unless serving a summons or subpoena or performing a seizure of assets. These visits are always scheduled in advance.
• The Federal Communications Commission has confirmed that the Bureau of Tax Enforcement is not a real organization.

If you receive a phone call from someone claiming to be the IRS, request a reference number and then call one of the official IRS numbers to double-check its authenticity. Accordingly, if you think you owe taxes or have an outstanding issue, contact the IRS to confirm directly.

To best protect yourself, request an Identity Protection PIN (IP PIN). This is a six-digit number that will bar any scammers from posing as you when filing tax returns.

Common tax relief scams

The IRS releases an annual Dirty Dozen list detailing the year’s biggest tax scams. Some common scams this year include:

• Refund claim: You may be notified that you can get a bigger refund based on inaccurate information. If you decide to pursue it, you will have to pay the tax relief company a fee for its services — only to be denied later.
• Tax refund: Scammers will tell you that you have an unclaimed tax refund, and they need your payment information to process your refund. When you do this, you give them access to your personal information and payment details.
• Tax bill: Scammers will also notify you that you have an outstanding tax bill. They may even threaten legal action or seizure of your assets. Always confirm your bill with the IRS before paying anything.
• W-2 form: Scammers don’t just target individuals — they go after businesses, too. Once they have access to a business’s payroll and W-2 data, it has access to the personal information of multiple people, leaving an entire business at risk.
• Email and text messages: Scammers will utilize email and text messages to send you fraudulent links that allow them to steal your personal information.
• Social media scams: Social media is an easy place for scammers to advertise their supposed services. They can encourage you to submit your payment information, or they may offer bad tax advice that leads you to believe you need their services.

Pro tip

Make sure your tax preparer has signed the return and included the correct filing details. The refund should go directly to your bank account.

» MORE: Tax updates and scam alerts

How to choose a legitimate tax relief service

Not all tax relief companies are scams. These tips can help you ensure the legitimacy of a company.

1. Compare services

Take the time to compare multiple tax relief companies before hiring one. Look at the type of services they offer, certifications and pricing. Some companies charge a flat fee, while others take a percentage instead. Think about which structure works best for you based on your budget.

2. Check qualifications

Before committing to a specific tax relief company, make sure it has a valid tax identification number. You can look up the company on the IRS website to ensure its legitimacy. Check to see what kind of experience it has had dealing with more complex cases so you can be sure it is capable of handling your tax needs.

3. Read reviews

Online customer reviews are a fantastic way to assess a company’s success rate and level of customer service. Learning about other customers’ experiences gives you a better idea of what to expect when working with a particular company.

4. Ask for a free consultation

Most legitimate tax relief companies will offer a free consultation. This is an opportunity to obtain more details about how their services can help your particular case. Come to the meeting prepared with a list of questions so you can have all the information you need to make a well-researched decision.

Bottom line: How to protect yourself from tax relief scams

The best way to protect yourself from tax relief scams is to open an online account with the IRS. This gives you access to important information like outstanding balances and payment history. You can even sign up for an IRS payment plan online so you do not have to call and sit through a lengthy queue before speaking with an IRS representative.

It is important to avoid any tax relief companies bearing these warning signs so you can protect your personal information and focus on legitimate avenues for tax relief.

What to do if you are a victim of a tax relief scam

If you feel you are the victim of a tax relief scam, cease all communications with the scammer and do not share any personal information or financials. Contact your financial institution to alert them in case your funds are accessed, and notify the IRS immediately. If you are the victim of a tax relief scam, you should do the following:

• Report it to the IRS online or call 800-908-4490.
• Report the scam with the Treasury Inspector General for Tax Administration online or by calling 800-366-4484.
• File a complaint with the Federal Trade Commission (FTC).
• Report the scam to your state tax agency.

Additional ways to get specialized support include contacting the Taxpayer Advocate Service, an independent organization under the IRS.