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Congress warns of rising tax scams

man reading the paper and doing taxes; Congress warns of rising tax scams
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With tax filings underway across the United States, congressional leaders from both parties issued a rare joint warning about a surge in tax scams. The alert, delivered in Washington this week, highlights two growing threats: fake IRS contacts and dishonest tax preparers. Lawmakers urged taxpayers to slow down, check credentials, and report suspicious activity before money disappears.

The warning arrives at a high-stress moment. Millions are gathering documents, filing returns, and waiting on refunds. Scammers know this calendar as well as accountants do, and they tailor schemes to peak anxiety. Lawmakers say the spike is real and the targets are everyday filers, seniors, and small business owners.

What Leaders Are Warning About

“Bipartisan congressional leaders warn taxpayers about rising tax season scams, including IRS impersonation and third-party tax preparer fraud schemes.”

The message carries a simple point: if a message claims to be from the IRS and demands fast payment, slow down. If a preparer promises huge refunds or asks you to sign a blank return, walk away. These are classic red flags, and they return every filing season with a fresh coat of paint.

Background: A Seasonal Target

Tax season has long been prime time for phone, text, and email scams. Fraudsters spoof caller IDs, copy IRS logos, and pressure people to act fast. Agencies have warned for years that the IRS does not initiate contact by text, social media, or email to demand payment or financial details.

On the preparer side, most professionals are legitimate. But a small share cut corners or commit fraud, leaving taxpayers on the hook for penalties. Common tactics include inflating deductions, inventing credits, or diverting refunds to their own accounts.

How The Schemes Work

IRS impersonation often starts with a call or text that claims your account is overdue or your refund is locked. The caller may threaten legal action. They push gift cards, wire transfers, or payment apps. Once money moves, it is hard to recover.

Third-party preparer fraud occurs when a paid preparer files inaccurate returns to inflate refunds or steal personally identifiable information. Some file without consent or ask clients to sign blank forms. Others hide fees until the last minute or take a cut of the refund.

Advice For Taxpayers

Officials and consumer advocates point to a few simple checks that can stop most scams before they start.

  • Do not respond to surprise texts, emails, or social messages about taxes.
  • Hang up on callers who demand instant payment or threaten arrest.
  • Pay taxes only through approved IRS channels listed on IRS.gov.
  • Choose preparers who sign returns and include their Preparer Tax Identification Number (PTIN).
  • Review your return line by line before it is filed.
  • Use secure portals to share documents; avoid sending tax data by regular email.

Industry And Policy Response

Professional tax groups have pushed for higher standards, including clearer fee disclosures and tighter identity checks. Lawmakers signaled interest in stronger penalties for willful fraud and better tools to help victims fix their records after identity theft.

Consumer groups also want faster takedowns of scams. That includes blocking spoofed phone numbers and removing fake “IRS help” listings from search results. Payment platforms face pressure to flag high-risk transactions tied to tax-related keywords during filing season.

What This Means For Filers

The practical takeaway is simple: treat urgency as a warning sign. The IRS gives taxpayers notice and a chance to appeal. Real agents do not demand gift cards or cryptocurrency. A solid preparer explains the return, answers questions, and signs their work.

Taxpayers who suspect fraud should report it quickly. Early reports help authorities spot patterns and shut off money routes. Keeping copies of filings and communications can speed up any cleanup if a return is compromised.

Lawmakers’ message lands at the right moment. Scammers thrive on stress and speed, while smart defenses rely on patience and checks. Expect more alerts as deadlines approach, along with sharper enforcement against corrupt preparers. For now, the safest plan is steady: verify contacts, pick trusted help, and keep control of your refund from start to finish.

Related Reading: Skepticism about money and politics is nothing new — see the quote claiming Congress can bribe the public with the public’s money.

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