Identity Theft Through Fraudulent Tax Returns

Perhaps the most damaging tax scam is identity theft via fraudulent returns. In this scenario, criminals use stolen personal data — such as Social Security numbers — to file fake tax returns early in the season, claiming refunds before legitimate taxpayers can file.

Victims often discover this only when they attempt to file and receive notifications that a return has already been submitted in their name.

Protecting yourself against tax identity theft includes enrolling in the IRS Identity Protection PIN (IP PIN) program, which assigns a unique code to your account and prevents unauthorized filing. Regularly monitoring your financial accounts and credit reports can also help catch suspicious activity early.

Staying Safe During the Holidays

Holiday tax scams thrive on urgency, distraction, and fear. To protect yourself, be cautious of unsolicited contacts claiming to be from the IRS, demanding payment, or offering unrealistically large refunds. Avoid clicking links in unexpected emails or texts about tax issues, and never provide personal information to unknown parties.

Use strong, unique passwords on financial accounts and enable multi‑factor authentication where possible. Avoid using public Wi‑Fi for sensitive transactions, and verify tax information directly through IRS.gov or licensed professionals. Report suspicious activity to the IRS, FTC, or your local fraud authorities to help protect yourself and others.

By staying informed about common tax scams — from impersonation calls to fake tax filing services — you can safeguard your personal information and financial well‑being during the holidays and into the tax season.