3 big scams to avoid this tax season, according to WalletHub
Tax season is complicated enough. Stay vigilant so you don't fall victim to the many scams out there
Xavier Lorenzo / Getty Images
Tax season is here, and so are the accompanying scams, which con Americans out of tens of millions each year.
WalletHub compiled a list of three major tax scams to look out for in 2026 and how to protect yourself.
Continue reading to see what they are:
1 / 4
Fraudulent returns
Natalia Gdovskaia / Getty Images
Your Social Security number, name, and address in the wrong hands is all it takes for someone to beat you to your own tax refund by filing online to collect it. And it’s no small problem: the IRS intercepted nearly $1.7 billion in stolen refunds in 2024. Getting your return submitted early this year is the simplest way to stop fraudsters from getting the cash before you, WalletHub said.
2 / 4
Phishing
tolgart / Getty Images
A phone call or email from someone claiming to be the IRS might feel alarming, but WalletHub says that alarm is exactly what scammers are counting on. These impersonators have reportedly targeted more than 2.4 million Americans, draining over $72 million from unsuspecting victims. New immigrants are disproportionately targeted, especially if they’re filing their taxes in the U.S. for the first time. All you need to do is hang up before considering sharing any personal information and you’ll be fine.
3 / 4
Illegitimate tax relief companies
AntonioGuillem / Getty Images
The tax industry has no shortage of companies selling relief that never materializes, hiding behind fine print and vague promises of IRS negotiation.
“We’ve all seen the budget TV spots and heard the radio ads that spew promises of tax salvation followed by a jet stream of fine print,” said WalletHub CEO Odysseas Papadimitriou. “Some of them may even offer modest results due to sheer familiarity with the tax-collection process. Many others, however, simply gouge your bank account without really doing anything to improve your financial situation. The easiest way to ensure that doesn’t happen is to avoid such companies entirely.”
That's why you need to be diligent when hiring tax services, reading contracts word for word and vetting a company's track record.
4 / 4
How to protect yourself:
ArtMarie / Getty Images
WalletHub has a number of tips for protecting yourself from scams, including:
- Trying to understand the tax system better so you can’t be easily duped.
- Getting an identity protection PIN from the IRS that would be required when you file for your taxes return.
- Ordering your tax transcript to have updated records.
- Only get tax help from real people you know.