IRS Issues Warning On New Tax Refund Scam

Adult man (age 40-50) sending or collecting mail from a postal box.

The IRS is warning taxpayers about a new scam involving tax refunds.

Here's how the scam works. Fraudsters are mailing taxpayers what looks like a cardboard envelope from a delivery service. The accompanying letter—complete with a fake IRS masthead—suggests that the notice is "in relation to your unclaimed refund." The letter includes bogus contact information and phone number that are not associated with the IRS.

The letter advises potential victims to provide "Filing Information" to receive a tax refund. This includes awkwardly worded requests for you to provide additional details such as "A Clear Phone of Your Driver's License That Clearly Displays All Four (4) Angles, Taken in a Place with Good Lighting."

The letter typically asks for more sensitive information, including your cell phone number, bank routing information, Social Security number, and bank account type. It may be followed by a poorly worded warning that reads, "You'll Need to Get This to Get Your Refunds After Filing. These Must Be Given to a Filing Agent Who Will Help You Submit Your Unclaimed Property Claim. Once You Send All The Information Please Try to Be Checking Your Email for Response From The Agents Thanks."

The scam's goal is to trick people into providing detailed personal information in hopes of stealing valuable information.

"This is just the latest in the long string of attempts by identity thieves posing as the IRS in hopes of tricking people into providing valuable personal information to steal identities and money, including tax refunds," said IRS Commissioner Danny Werfel. "These scams can come in through email, text or even in special mailings. People should be careful to watch out for red flags that clearly mark these as IRS scams."

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Red Flags

There are a few indications that this is a scam. Notably, the letter includes odd punctuation and a mixture of fonts.

First, the IRS handles tax matters, including tax refunds and not "unclaimed property."

The letter contains other inaccuracies. For example, it indicates that the deadline for filing tax refunds for the 2022 tax year is Oct. 17, 2023. Assuming you have an extension, the due date for filing your 2022 tax return is Oct. 16, 2023. Taxpayers looking for a refund have even more time. Generally, you must file a claim for a credit or refund within three years from the date you filed your original tax return or two years from the date you paid the tax, whichever is later.

Dirty Dozen

These kinds of scams often pop up in the IRS' Dirty Dozen roundup. The "Dirty Dozen" is an annual list of common scams taxpayers may encounter. Many of these schemes peak during tax filing season as people prepare their returns or hire someone to help with their taxes. The schemes put taxpayers and tax professionals at risk of losing money, personal information, data, and more.

IRS Contact

Your first contact with the IRS will tend to be through the mail. As a reminder, the IRS will not initiate contact with taxpayers by email, text, or social media regarding your tax account or your tax refund.

Never click on any unsolicited communication claiming to be from the IRS, as it could be an attempt to steal your information or load malware or ransomware on your devices.

Protect Yourself

To protect yourself, if you receive a tax-related phishing (email) or smishing (text) link:

• Don't respond. Any engagement could put you at risk. Remember, this is how scammers make a living—their goal is to persuade you to give up your information, so don't give them an additional opportunity.
• Don't open attachments. Even if they look harmless, they can contain malicious code that may infect your computer or mobile phone
• Don't click on links. Visit the IRS identity protection page if you clicked on links in a suspicious email or website and entered confidential information.
• Forward the text or email, preferably with the full email headers, tophishing@irs.gov. Send the whole email and not a scan (simply forwarding scanned images removes valuable information). The IRS also asks that you include the sender’s contact information (email or phone number), date, time and time zone, and the number that received the message.
• Delete the original email or text.
• Check your account online. If you believe that you might be entitled to a tax refund—or if you’re actually expecting one—you can check the progress of your tax refund through the “Where’s My Refund?” tool or the IRS2GoApp.

Report Bad Actors

The IRS encourages you to report scams to the Treasury Inspector General for Tax Administration or the Internet Crime Complaint Center. You can also find contact information to report abusive tax scams, including phishing scams, on the IRS website.

Resources

The Federal Communications Commission has a Smartphone Security Checker that provides useful tips. It features best practices on how to set pins and passwords, where to find security apps, how to enable remote locating and data wiping, and how to back up and secure your data if your device is lost or stolen. You can also find information on how to safely use public Wi-Fi networks and what steps to take if your phone is stolen.

The IRS also maintains a page on its website with a running list of known scams targeting taxpayers and tax professionals. There’s also a page on the site with steps to take if you think you’ve been a victim of identity theft.