6 Common Tax Scams to Watch Out for in 2026

2017-04-24

Only communicate with the IRS through channels listed on the official website, IRS.gov.
Make sure your preparer has a valid Preparer Tax Identification Number.
The IRS never demands fees immediately following law changes. Always check their website for these updates.
Texas Bay will never ask for your Social Security number or account password.
Call us at (713) 366-4929 about any suspicious account activity.

UPDATE: See the IRS Dirty Dozen tax scams for 2026 here.

Scammers are constantly finding advanced ways to target taxpayers, especially during tax season. As your local credit union, we make your financial health and security our highest priority at Texas Bay.

We’ve put together a list of the most common threats for 2026 to help you stay ahead of tax scams this year. Here’s what you need to know to protect your hard-earned money.

Tax Scam #1: IRS Impersonators

Impersonating IRS agents is one of the most common tactics scammers use, because the contact methods are easy:

Email (Phishing): Scammers use official logos and signatures in emails to trick you into clicking links that steal your private data.

Phone Calls (Spoofing): Scammers disguise their phone number and caller ID as a person or organization that you trust to access your private information.

Text Messages (Smishing): Fraudsters send urgent messages that promise refunds or demand "immediate action" via a malicious link for you to click.

How to Protect Yourself from IRS Scams

If you hear from the “IRS” by phone, text, email, or any other method of communication:

Don’t click any links or open any attachments
Don’t respond, don’t share any information, and don’t follow any of their instructions
Hang up or close the message
Contact the IRS through one of the official channels listed on their website, IRS.gov
- Ask them if the message or call you received is legitimate
- If it is not, report it as fraud

Tax Scam #2: Ghost Tax Preparers

Fake tax professionals have been a prevalent threat on the IRS’s “Dirty Dozen” list since 2019. Here’s what these scammers do:

Promise large refunds to taxpayers
Enter false information on paperwork for a larger refund
Refuse to sign the return or include their Preparer Tax Identification Number (PTIN)
- All preparers MUST sign or provide their PTIN per IRS regulations
Have either a part or all of their client’s refund sent to their own bank account
Disappear without a trace

How to Protect Yourself from Ghost Tax Preparers

Choose your tax preparer carefully. Check for the following before engaging with one:

They’re available year-round
They have a good reputation and the necessary credentials
- Check the Better Business Bureau for disciplinary actions and license status
- For CPAs, check the State Board of Accountancy
- For lawyers, check the State Bar Association
- For enrolled agents, check the IRS Directory of Federal Tax Return Preparers
Service fees are NOT based on a percentage of your refund

Once you receive your tax return, review it carefully before signing it:

Make sure your preparer signed it or included their PTIN
Ask questions if any information looks inaccurate
Double-check that the bank account and routing number are yours

If anything about your preparer or return is suspicious, report it to the IRS right away.

Tax Scam #3: Bad Tax Advice on Social Media

Following viral “hacks” on social media can lead taxpayers to commit unintentional fraud, resulting in audits and steep fines. If an influencer promises a “secret loophole” that sounds too good to be true, it likely is.

Many of these “experts” share advice simply to grow their following, but some are active scammers who entice their audience to get in touch with them. The most common examples of these are ghost preparers or identity thieves.

How to Avoid Bad Tax Advice Online

Choose carefully who you take advice from. Verify their credentials using resources like the Better Business Bureau, and ensure they have a positive reputation among their clients and audience. When listening to advice, look out for the following red flags:

Credits Available to Everyone: Most tax credits, like the Fuel Tax Credit, are only available to certain filers, not everyone
“Secret” Tricks: No legal filing strategy is hidden by tax preparers or the IRS
No Documentation Needed: All tax credits require you to submit receipts or records; don’t trust “experts” who say otherwise

If you realized that you followed bad advice, do the following immediately:

Use Form 1040-X to file an amended return and correct any mistakes
Notify the IRS
Reach out to a credentialed CPA, enrolled agent, or tax attorney for help

Tax Scam #4: Charity Impersonators

Charity scams are prevalent year-round but are a regular entry in the IRS’s “Dirty Dozen” because they target taxpayers interested in charitable contribution deductions.

Charity impersonators typically do the following:

Spoof websites, social media, emails, or phone calls to mimic known charities
Pressure taxpayers into paying immediately, especially following disasters
Promise deductions
Steal taxpayers’ personal information and their money

How to Protect Yourself from Charity Scams

According to the IRS, you can avoid fake charities by doing the following:

Verify Charities: Use resources like the Tax Exempt Organization Search (TEOS)
Ignore Pressure: Real charities will never try to rush you into donating
Guard Personal Information: Charities never need the following:
- Debit or credit card numbers
- Bank account information
- Social Security numbers
- Your full name or date of birth
- Your mother’s maiden name
Pay by Card or Check: Charities won’t ask for gift cards or wire transfers

Tax Scam #5: Financial Institution Impersonators

Fraudsters impersonate credit unions and banks to gain taxpayers’ private information. This is a year-round scam that spikes during tax season. Some of their tactics include:

Spoof phone calls, text messages, and emails from financial institutions
Claim that there’s suspicious account activity or an issue with an incoming refund
Request sensitive information for account verification
Provide a link to a site designed to steal private information

This usually results in a taxpayer’s tax refund, savings, or even identity being stolen.

How to Protect Yourself from Bank or Credit Union Scams

Never share information like your Social Security number or account password
- Don’t even trust caller ID; scammers can fake this
- Texas Bay will never ask you either by phone, email, or text
Hang up and call your credit union or bank at a trusted number
- Call Texas Bay directly at (713) 366-4929
Report any suspicious activity to your financial institution

Tax Scam #6: Fake Tax Law Change Scams

Scammers use high-profile changes to tax laws to confuse taxpayers, convincing them that they owe money or are eligible for credits. A current example of this is the One Big Beautiful Bill Act (OBBBA).

Fraudsters exploit tax law changes like those in OBBBA by doing the following:

Impersonate government officials like IRS agents
Use phone spoofing, email phishing, and AI voice cloning to appear legitimate
Promise a “stimulus” or “dividend” in exchange for a “processing fee”
Claim taxpayers are in violation of updated laws and demand payment
Offer “compliance audits” to prepare for law changes
- In this case, their goal is to steal personal information

How to Protect Yourself from Tax Law Scams

These types of changes are rarely implemented immediately and are always verifiable through the government’s own resources.

Verify the Law: Check the IRS’s Newsroom if you hear about any new “credits” available to you or “fees” you must pay. If it’s not there, chances are it’s not real.
Ignore “Instant” Changes: The IRS rarely implements major law changes right away. If you’re told that you’re in violation of a new law, it’s likely a scam. Check the IRS’s Newsroom or reach out to a trusted professional before taking action.
Only Use Official Websites: If you’re being directed to the IRS’s website through a text or email, don’t click that link. Open your browser and pull up the IRS’s website: IRS.gov.
Contact a Professional: When in doubt, reach out to a reputable CPA or tax attorney. Find them on the Better Business Bureau and look up their client reviews.

FAQ: Tax Scams

How can I tell if a "Tax Law Update" notice is real?

The IRS communicates major legislative changes, like those in the One Big Beautiful Bill Act (OBBBA), through official U.S. mail. They will never send an "urgent" update via text or email. You can always verify new laws directly on the IRS Newsroom.

What should I do if I already clicked a link in a suspicious tax email?

If you entered any banking information, contact Texas Bay immediately at (713) 366-4929 to secure your accounts.

Can the IRS really revoke my driver's license or passport for unpaid taxes?

No, they can’t take your license. While the IRS can sometimes flag serious tax debt to the State Department (which might affect your passport), they cannot cancel your driver’s license. If someone calls you threatening to "dispatch the police" or "suspend your license," hang up immediately.

How do I report a "Ghost Preparer" who messed up my taxes?

If a preparer refused to sign your return or provided a fake PTIN, you should report them using IRS Form 14157. This helps the IRS track fraudulent patterns and protect other taxpayers.

Is there a way to prevent someone else from filing a fake return in my name?

Yes. The IRS offers an Identity Protection PIN (IP PIN). This is a six-digit number assigned to you that prevents a scammer from filing a return using your Social Security number.

Protecting Your Financial Future Together

This tax season, protect your hard-earned money by staying two steps ahead of advanced tax scams. No matter how advanced a scammer’s tactics are, they’re no match for you if you stay informed and vigilant.

If you have questions about how to protect your financial information from scammers or notice suspicious account activity, don’t hesitate to reach out to us. We’re here to help.

Disclaimer: Texas Bay Credit Union and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before making any tax-related decisions.

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