Tax Season Alert: Fraud Red Flags Every Filer Should Watch for Before April 15

As the April 15 tax filing deadline approaches, millions of Americans are rushing to gather documents, finalize returns, and submit payments. Unfortunately, this high‑stress period is also peak season for tax‑related fraud. Scammers know filers are distracted, time‑pressed, and worried about making mistakes - and they take full advantage.

Before you file, it’s critical to understand the most common tax scams circulating right now and the steps you can take to protect your identity, your refund, and your financial well‑being.

Why Tax Season Is Prime Time for Scams
Tax crimes have grown more sophisticated in recent years, fueled by stolen personal data, fake websites, and increasingly convincing emails and text messages. Many scams are designed to look as though they come directly from the IRS, tax software companies, employers, or even trusted financial institutions.

The goal is often one of three things:

Steal your personal information
Divert your tax refund
Trick you into making fraudulent payments

Understanding how these schemes work is the first step in stopping them.

Common Tax Scams to Watch for in 2026
1. Fake IRS Communications
One of the most persistent scams involves messages claiming to be from the IRS. These often arrive via email, text message, or social media and may warn of:

Immediate tax penalties
A “suspended” Social Security number
Problems with your return or refund

Red flag: The IRS does not initiate contact with taxpayers by email, text, or social media. Any unsolicited digital message claiming to be the IRS is almost certainly a scam.

2. Refund Theft and Identity Fraud
Refund fraud happens when a criminal files a tax return using your stolen personal information and claims your refund before you do. Victims often don’t realize what’s happened until their legitimate return is rejected as a duplicate.

Red flag: Being told your return has already been filed—or receiving an IRS notice for income you didn’t earn—can signal identity theft.

3. “Ghost” Tax Preparers
A ghost preparer is someone who charges to prepare your tax return but refuses to sign it or include their IRS Preparer Tax Identification Number (PTIN). These individuals often promise unusually large refunds and may invent deductions or credits to inflate results.

Red flag: Any paid preparer who won’t sign your return or encourages false information is putting you at risk - not themselves.

4. Fake Charities and Disaster Relief Scams
Scammers frequently use recent disasters or high‑profile causes as emotional triggers. They may solicit donations while posing as legitimate nonprofits, especially during filing season when taxpayers are already considering charitable deductions.

Red flag: Pressure to donate immediately or demands to pay via gift cards, wire transfers, or cryptocurrency.

5. Tax Software Impostors
Cybercriminals sometimes clone the look of popular tax preparation websites or send emails claiming there’s an “issue” with your account. Clicking these links can lead to malware installation or credential theft.

Red flag: Messages urging you to click a link to “verify” your tax account information.

How to Protect Yourself Before You File
File Early When Possible
Filing sooner reduces the chance that a scammer can file first using your information. It’s one of the simplest and most effective protections against refund fraud.

Secure Your Personal Information

Use strong, unique passwords for tax software and financial accounts
Enable multi‑factor authentication whenever available
Avoid public Wi‑Fi when accessing tax systems

Choose a Reputable Tax Professional
If you use a preparer:

Confirm they have a valid PTIN
Ensure they sign and date your return
Avoid anyone who guarantees a refund amount

Review Your Return Carefully
You are legally responsible for your tax return - even if someone else prepares it. Double‑check:

Income amounts
Bank account numbers for direct deposit
Credits and deductions claimed

Know How the IRS Communicates
The IRS typically contacts taxpayers by mail, not by phone, email, or text. If you’re unsure about a notice, visit IRS.gov directly or consult a trusted tax professional.

What to Do If You Suspect Tax Fraud
If you believe you’ve been targeted:

Do not respond to suspicious messages
Report phishing emails to phishing@irs.gov
Monitor your credit reports
Consider placing a fraud alert or credit freeze
File IRS Form 14039 (Identity Theft Affidavit) if your identity has been compromised

If you suspect that your account information has been compromised or notice any unusual activity, contact VeraBank Bank at 877-566-2621 immediately. Acting quickly helps us safeguard your accounts and minimize potential losses. Early reporting is one of the most effective ways to stop fraud before it escalates.

For additional tips, alerts, and best practices, we encourage you to visit the Fraud Prevention section of our website, where you’ll find resources designed to help your business stay informed and secure throughout the year.

Final Thoughts
Tax-related fraud is evolving, but most scams rely on the same tactics: urgency, fear, and confusion. Taking a few extra minutes to verify information, protect your data, and work with reputable professionals can save you months -or even years - of headaches later.

As April 15 approaches, staying informed is just as important as filing on time. When in doubt, slow down, double‑check, and remember: if something feels off, it probably is.