BBB warns tax filers to watch for scams

As the tax filing deadline approaches, the Better Business Bureau (BBB) is urging consumers, especially last-minute filers, to stay alert. With fewer than 30 days remaining in tax season, scammers are increasing their efforts by posing as the Internal Revenue Service (IRS) and promoting fraudulent tax services, including so-called "ghost" preparers.

While many scams follow familiar patterns, they often appear with new tactics each year, making them harder to recognize in the moment. BBB is encouraging consumers to stay informed and watch for the most common tax-related scams, including:

• IRS impersonation scams. Calls, texts, or emails claiming you owe money or are due a refund, often demanding immediate payment
• Email and text phishing. Messages with links to fake IRS websites designed to steal personal information
• Tax identity theft. Scammers using stolen Social Security numbers to file fraudulent returns and claim refunds
• "Ghost" tax preparers. Individuals who prepare returns but refuse to sign them or include a valid Preparer Tax Identification Number (PTIN), leaving consumers at risk
• Mail scams. Letters claiming you have an unclaimed refund and requesting sensitive personal or financial information

Red flags to keep in mind:

• The IRS will not initiate contact by phone, email, text, or social media
• Pressure to act immediately or threats of arrest
• Requests for payment via gift cards, wire transfers, money payment apps, or cryptocurrency
• Tax preparers who refuse to sign your return
• Be wary of tax preparers offering tax refunds or large returns

BBB tips to avoid tax scams:

• File your taxes early to reduce the risk of identity theft.
• Only work with trusted and verified tax professionals.
• Ensure your preparer signs your return and includes their PTIN.
• Go directly to the official IRS website when filing or seeking information.
• Never click on unsolicited links or share personal information.
• Always review your tax return before signing and filing, and never sign a blank return.

Staying informed and taking a few extra moments to verify who you are working with can help prevent costly mistakes during tax season.

"As the tax deadline approaches, we often see an increase in scams targeting consumers who are feeling rushed," said Alma Galvan, spokesperson, BBB. "Take your time, verify who you're working with, and never share personal or financial information with someone you don't trust."

Consumers who encounter suspicious activity or believe they have been targeted by a scam are encouraged to report it through BBB Scam Tracker. Additional tips and resources are available at BBB.org.