IRS raises alarm over holiday scams aimed at stealing money and identity information - here's what the agency said

As the holiday shopping season gathers pace and tax filing season edges closer, the Internal Revenue Service (IRS) is urging Americans to stay alert. Federal officials say scam attempts tend to spike in the final weeks of the year, often targeting taxpayers when spending is high and attention is divided.

The agency’s latest advisory focuses on identity theft and fraud schemes that exploit confusion around refunds, credits, and digital communication.

“With the holiday shopping season underway and tax season quickly approaching, we are urging taxpayers and tax professionals to take extra steps to protect their financial and tax information,” said IRS CEO Frank Bisignano.

He added that criminals often use this period to trick people into sharing sensitive data, which can then be used to file false returns and claim refunds.

Identity protection highlighted in the IRS advisory

At the centre of the warning is the Identity Protection PIN or IP PIN. It is a six-digit number that blocks anyone else from filing a tax return using a taxpayer’s Social Security number or Individual Taxpayer Identification Number.

The IRS says taxpayers do not need to be victims of fraud to request one. Anyone with an SSN or ITIN, including those living outside the United States, can proactively sign up for an IP PIN to reduce the risk of fraudulent filings.

Common holiday scams flagged by the IRS

The agency has flagged several tactics it sees repeatedly during the holidays.

Social media scams: Social media scams remain a growing concern. Posts claiming access to “secret” tax credits or promising large refunds often push users to falsify details on tax forms. Some may redirect people to fraudsters posing as advisors or IRS representatives.

Phishing and smishing scams: Phishing and smishing attempts continue through email and text messages. These messages often demand immediate payment or urge recipients to click links or download attachments, which can expose personal or financial information.

Senior citizens: Scams targeting older adults are another focus. Fraudsters frequently target people aged 65 and above, asking for money or financial details. In some cases, seniors are pressured into withdrawing retirement funds, which can create further tax complications.

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Scams targeting seniors, businesses and tax professionals

The IRS also addressed businesses and tax professionals, reminding them of their obligation to maintain a Written Information Security Plan and use multi-factor authentication. Officials emphasised that outdated systems continue to be a common entry point for cyberattacks.

As the agency notes, most scams rely on creating a sense of urgency and confusion. As the holiday season approaches, the reminder is to pause, verify, and avoid sharing personal or tax information unless the source is clearly legitimate.

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FAQs

What holiday scams is the IRS warning about?

The IRS has warned about phishing emails, smishing texts, social media tax scams, and fraud targeting seniors and businesses.

What is an IRS Identity Protection PIN?

An IP PIN is a six-digit code that helps prevent scammers from filing fake tax returns using a taxpayer’s information.

Who is eligible for an IRS IP PIN?

Anyone with a Social Security number or Individual Taxpayer Identification Number, including people living overseas, can request an IRS IP PIN.