Tax Time Scams: What to Watch Out for This Year
Tax season is stressful enough without criminals trying to take advantage of it. Unfortunately, scammers know that this time of year people are sharing sensitive information, expecting refunds, and eager to file quickly, making tax season a prime opportunity for fraud.
At Pennian Bank, protecting your financial wellbeing is part of our commitment to our customers. Below are some of the most common tax-related scams we’re seeing, what they look like, how to avoid them, and what to do if you believe you’ve been targeted.
1. IRS Impersonation Scams
Scammers pose as the IRS, contacting victims by phone, email, text message, or even social media. They often claim you owe back taxes, penalties, or fees and threaten arrest, wage garnishment, or license suspension if you don’t pay immediately.
These fraudsters may ask for payment via gift cards, wire transfers, cryptocurrency, or prepaid debit cards.
How to avoid it
- Remember: The IRS does not call, text, or email you demanding immediate payment
- The IRS will never ask for payment over the phone or request gift cards
- Don’t click links or open attachments claiming to be from the IRS
- If unsure, go directly to IRS.gov rather than using contact info you’re given
2. Tax Refund Scams
This scam involves messages claiming there’s an issue with your tax refund or that you’re eligible for a larger refund. Victims are directed to click a link or provide personal information to “release” the refund.
In reality, the goal is identity theft.
How to avoid it
- Be skeptical of unsolicited refund notifications
- Verify your tax refund status only through official IRS tools
- Never share personal or banking information in response to unexpected messages
- Watch for spelling errors, generic greetings, or urgent language
3. Fake Tax Preparers
Fraudsters pose as legitimate tax preparers, often advertising inflated refunds or “guaranteed” results. Some file false returns using your personal data, divert refunds to their own accounts, or disappear entirely once paid.
How to avoid it
- Only use reputable, established tax professionals
- Avoid preparers who refuse to sign your return or won’t provide a PTIN (Preparer Tax Identification Number)
- Be wary of fees based solely on refund size
- Review your completed return carefully before filing
4. Phishing Emails and Text Messages
Phishing scams send emails or texts designed to look like legitimate tax agencies, payroll departments, or software providers. These often contain links or attachments that install malware or steal login credentials.
How to avoid it
- Don’t click links from unknown or unexpected senders
- Look closely at email addresses
- Pennian Bank or the IRS will never ask for sensitive information via text or email
- Use spam filters and keep devices updated with security software
What to Do If You Become a Victim
If you believe you’ve fallen victim to a tax scam, act quickly:
- Contact Pennian Bank immediately
If financial information was shared or money was sent, notify us right away so we can help protect your accounts. - Report the scam to the IRS
- Report identity theft at: IdentityTheft.gov
- Monitor your accounts and credit
Watch for unusual activity and consider placing fraud alerts or credit freezes with major credit bureaus. - Change passwords and secure accounts
Update all financial, email, and tax-related logins, especially if you clicked a suspicious link. - File a police report if necessary
This may be required for identity theft recovery or insurance claims.
Stay Alert This Tax Season
If something doesn’t feel right, trust your instincts and reach out. Pennian Bank is always here to help you protect what matters most.
Have questions or concerns?
Visit your local branch or contact Pennian Bank directly.
