IRS and Tax Scam Calls: How to Tell They Are Fake

Scammers love tax season. A real tax agency does not threaten arrest by phone or demand gift cards. Knowing a few facts keeps you calm.

Step by step

1. Hang up. Do not argue or give any details.
2. Know what is real. The IRS generally starts with a letter by mail.
3. Never pay by gift card. Or wire or crypto.
4. Check your account yourself. Use the official website you typed in.
5. Report it. At reportfraud.ftc.gov and the tax agency's site.

What to expect

Expect callers who sound official, give a badge number and demand payment right now. They may threaten arrest, a lawsuit or loss of your license. Real tax agencies mail letters first and offer ways to appeal.

Mistakes to avoid

Do not call back a number left on a voicemail, give any digits of your Social Security number, or pay with gift cards, wire transfers or cryptocurrency. Do not be embarrassed to hang up. Do not click links in texts that claim to be about a refund.

A good next step

Look up the agency's real phone number yourself and call to ask whether you owe anything. Then report the call to the FTC.

How the scam usually unfolds

1. The first contact. A robocall, a live caller or a text says you owe back taxes, there is a problem with your return, or a warrant has been issued. Calls often come with a badge number and a call-back number.
2. The pressure. You are told you must act within hours. The caller may keep you on the line, stop you from talking to family and warn that hanging up will make things worse.
3. The payment demand. You are told to pay with gift cards, a wire, a cash-app transfer, cryptocurrency or by buying a prepaid card and reading out the numbers. These are untraceable, which is why scammers ask for them.
4. The follow-up. Once you pay, scammers often call again with a new problem or a refund that "went to the wrong account." Do not engage.

What real tax agencies do and do not do

• The tax agency usually contacts you first by letter delivered by mail, not by phone, text or email.
• It does not demand immediate payment by gift card, wire transfer or cryptocurrency.
• It does not threaten to have you arrested, deported or to take away your driver's license for unpaid taxes.
• It gives you a chance to question or appeal what you owe.
• It does not ask for card numbers over the phone from a call you did not expect.

If you already gave money or information

1. Contact your bank or card company. Explain what happened and ask them to stop payments or flag the account. Speed matters.
2. Report the loss. File a report at ReportFraud.ftc.gov. If a gift card was used, tell the card company too.
3. Protect your identity. If you shared your Social Security number, freeze your credit at the three credit bureaus and check your credit reports. If you suspect tax identity theft, use IdentityTheft.gov for a recovery plan.
4. Report the impersonation. The tax agency accepts reports of impersonation and phishing, and the Treasury Inspector General for Tax Administration takes reports of callers pretending to be tax officials.
5. Tell someone. Talk to a friend or family member. Scammers count on shame to keep victims quiet.

Words and phrases that give it away

• "This is your final notice."
• "A warrant has been issued for your arrest."
• "Do not hang up or tell anyone."
• "Go to the store and buy gift cards."
• "Your Social Security number has been suspended." (this is a different scam, but it often travels with this one)

A prompt you can copy

Common questions

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