Taxpayers Beware: IRS Warns of Holiday Season Scams and Fraudsters

You might not expect to hear much from the Internal Revenue Service before January, when the 2025 tax filing season properly gets underway. However, as we find ourselves in the final days of the holiday shopping season, the IRS is warning shoppers about scams during the holiday season.

Scammers thrive in environments where consumers are parting with their money, and the more money, the better for them, making the holiday season a particularly ideal hunting ground. Adobe says holiday online spending is trending up so far in 2024 and forecasts that spending will be about 8% higher than in 2023. The FBI has warned consumers about scams during the holiday season, singling out things like gift card scams, which the IRS has been sounding the alarm against.

“The holiday shopping season and the fast-approaching tax season create a tempting target for identity thieves and scam artists,” IRS Commissioner Danny Werfel said in a statement from Dec. 2. “Taxpayers should use extra caution this holiday season to protect their valuable personal and financial information, whether shopping online or clicking on links in email and other messages. A little extra caution can protect taxpayers’ confidential information and reduce the risk of identity theft in the upcoming filing season.”

Read on for a breakdown of the IRS’s recent warnings. For more on holiday shopping, find out how many shoppers are projected to use credit for purchases this year and get some tips for safe online shopping. 

Beware of IRS scammers asking for gift cards

In a post to its official government website, the IRS cautioned holiday shoppers not to “let scammers ruin holiday gift card giving.” Gift cards are a common facet of many modern scams: perpetrators will often ask to be provided with them in lieu of actual money, as they can most often be traded for their exact value in cash and are almost impossible to trace.

The IRS has specifically warned people to be wary of scammers trying to impersonate IRS officers or other government officials, who might demand that their target provide gift cards of a certain value to pay off an outstanding debt. There are other signs that such demands are scams: the scammer might insist that the payment be made immediately, and they might threaten to get law enforcement or other such entities involved if their demands are not met. A favored tactic for scammers is to make people feel that they are in trouble right now and have to act fast, as this leads people to making rash decisions.

The IRS stressed that it would never “demand immediate payment using a specific payment method such as a gift card, prepaid debit card or wire transfer.” The agency will typically inform taxpayers of amounts they owe by mail first and will always provide an opportunity for the amount to be appealed. 

Be on the lookout for fake delivery alerts

While not something directly related to taxes, the IRS nonetheless also issued a warning to consumers about fake package shipping alerts. These messages, typically emails or text messages, falsely claim that a package supposedly ordered by the intended victim has encountered issues in transit and present a link where the issue can supposedly be corrected. In reality, the link “represents a form of phishing that attempts to steal personal information or download malware,” the IRS explained.

To protect yourself from these phishing attempts, never click on any link included in such emails. If you want to confirm what is or isn’t going on with your package, go straight to the shipping company’s official tracking tool to check its status or call its customer support line. These resources will help you get a straight answer without putting your personal information at risk.

What if I suspect that I’ve found a scam?

The IRS encourages people who have either been the victim or a scam or suspect that they encountered one to report it to the office of the Treasury Inspector General for Tax Administration. This can be done either online at the IRS Impersonation Scam Reporting page or by phone at 800-366-4484.

For more, check out how Google can monitor potential phone scams in real time.