Remain Alert for Tax Scams That Target Victims All Year, Not Just During Tax Filing Season

Income tax scams occur all year long, not just during the January through April tax season, and can catch unsuspecting victims off guard

Many taxpayers breathe a sigh of relief after filing their returns, thinking tax-related scams will not be a concern until the next filing season. In reality, tax scammers operate all year, using sophisticated tactics to steal money or personal information. In North Carolina and across the United States, these scams can result in losses of hundreds or even thousands of dollars. Awareness and vigilance are essential whether it is April or the middle of summer.

EFTPS scam

The Electronic Federal Tax Payment System (EFTPS) is a legitimate U.S. Treasury service, but scammers misuse its name to intimidate victims. In this scam, callers spoof the IRS on caller ID and claim certified letters were sent but returned as undeliverable. Victims are told to make an immediate payment using a specific prepaid debit card allegedly linked to EFTPS, or in some cases, a gift card. They may be instructed not to consult a tax preparer, attorney, or the local IRS office, with threats of arrest if they do not comply. The IRS does not request payments this way and does not discourage taxpayers from seeking professional advice.

Robocall messages

The IRS does not leave prerecorded voice messages demanding callbacks. In this scam, an automated call warns that a warrant will be issued for your arrest unless immediate payment is made by prepaid debit card or wire transfer. These calls often originate from overseas but spoof U.S. phone numbers to appear local. The IRS does not use these methods for legitimate tax collection.

Private debt collection scams

The IRS sometimes assigns certain overdue accounts to one of four authorized private-sector collection agencies. Before this happens, the IRS sends a written notice, followed by a letter from the agency. Scammers pose as these agencies to pressure victims into quick payments. The legitimate agencies will only be calling about longstanding tax debts the taxpayer has been contacted about multiple times before. A full list of the IRS-authorized agencies is available at IRS.gov.

Scams targeting people with limited English proficiency

Con artists often target individuals with limited English skills, communicating in their native language and using threats of deportation, police arrest, or license revocation. Victims are told they owe taxes and must pay immediately through a preloaded debit card, gift card, or wire transfer. The scam may also involve “urgent” callback requests via robocalls or phishing emails. Victims often do not report the crime due to fear of immigration or legal consequences, which scammers exploit.

Signs of a tax scam

• The IRS and its private collection agencies will never demand immediate payment using specific payment methods like prepaid debit cards, gift cards, or wire transfers. Payments should always be made payable to the U.S. Treasury, never to third parties.
• No legitimate agency will threaten to send police or other law enforcement to arrest you for nonpayment.
• You should always have an opportunity to question or appeal a tax bill. If this is denied, you are likely dealing with a scammer.
• Legitimate tax agencies do not request payment information by phone or email.

Special circumstances for IRS contact

The IRS typically initiates contact by mail through the U.S. Postal Service. However, in certain cases, they may call or visit a taxpayer’s home or business, but always after sending official letters first. These situations include:

• When a taxpayer has a very large overdue tax bill, often more than $100,000
• To secure a delinquent tax return or a delinquent employment tax payment
• To tour a business as part of an audit or during a criminal investigation

Emerging scam tactics in 2025

Recent reports show scammers increasingly using text messages (smishing) that appear to come from the IRS, directing recipients to fake “tax refund” or “payment portal” websites. These sites steal login credentials or financial information. The IRS does not use text messaging for initial contact with taxpayers. Another 2025 tactic involves fake “direct deposit verification” emails that request bank account numbers under the pretense of expediting refunds.

North Carolina-specific information

North Carolina residents who believe they have been targeted or defrauded by a tax scam should contact the NC Attorney General’s Consumer Protection Division at 1-877-5-NO-SCAM (1-877-566-7226). The NC Department of Revenue also warns taxpayers to verify any tax-related communications by calling 1-877-252-3052 before sending money or sharing personal information (NC Department of Revenue).

How to protect yourself

• Verify any unexpected tax bill by contacting the IRS directly at the number listed on their official website
• Never make payments with gift cards, prepaid debit cards, or wire transfers
• Shred or securely store documents with personal information
• Enable multi-factor authentication on email and financial accounts
• Report suspicious contacts immediately to the Treasury Inspector General for Tax Administration at TIGTA.gov

If you have already paid a scammer

If you realize you have been scammed after making a payment, contact your credit card company or bank immediately to try to stop the transaction. File a report with the Federal Trade Commission at reportfraud.ftc.gov and with the NC Attorney General’s Consumer Protection Division. If personal information has been compromised, place a fraud alert with the three major credit bureaus and monitor your credit reports regularly at AnnualCreditReport.com.

Year-round vigilance is essential

Scammers rely on fear, urgency, and confusion to push victims into quick decisions. By learning the warning signs and verifying any tax-related contact through official channels, you can avoid becoming their next victim. Keep in mind that legitimate tax agencies want you to have the opportunity to ask questions, verify debts, and pay through secure, traceable methods, not through unverified requests for instant payment.