Common Tax Fraud Scams
Fake IRS Tax Demands
Scammers impersonate IRS agents or other tax authorities, claiming you owe unpaid taxes. They use fear tactics, threats of legal action, asset seizure, or even arrest to pressure victims into making immediate payments. These demands often come through phone calls, emails, or fake IRS letters.
Crypto Tax Withdrawal Fee Scams
Fraudsters claim you must pay a "tax clearance fee" before accessing your cryptocurrency funds on an exchange or digital wallet. They convince victims that without this payment, their Bitcoin or other crypto assets will remain locked permanently.
Fraudulent Tax Refund Scams
Scammers send fake tax refund notifications via emails, text messages, or phone calls, claiming the recipient is owed a large tax refund. To process the refund, they ask for personal details or banking information. Once they have this data, they can steal the victim’s identity, drain bank accounts, or file fraudulent tax returns.
Capital Gains Tax Fraud
Some scammers pose as tax consultants, brokers, or legal professionals. They claim investors must pay capital gains taxes before receiving profits from an investment or sale of assets. Victims transfer money to the fraudster, only to realize later that there were no real profits and the tax demand was fake.
Taxpayer Identity Theft
Scammers steal personal and financial details through phishing scams, data breaches, or fraudulent websites. Using this information, they file fake tax returns in the victim’s name and claim a fraudulent refund before the real taxpayer has a chance to file. Victims often discover the fraud only when their legitimate tax return is rejected.
Stay Safe – Verify any tax notice with official tax agencies and never share sensitive information with unknown sources.
