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By Sam Stevenson
Associate News Editor
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The Internal Revenue Service (IRS) has sounded the alarm for millions of Americans to be aware of fraudsters during the Christmas season.
Why It Matters
Christmas, traditionally a peak period for online shopping, has become an annual hotspot for tax-related scams and identity theft, according to the IRS.
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The holidays coincide with the approach of tax filing season, creating a lucrative window for scammers to target consumers, tax professionals, and businesses nationwide.
Losses to identity theft-linked tax fraud and the sophistication of online scams have prompted the IRS and its Security Summit partners to reinforce their public outreach and defensive measures this December.
What To Know
This week marks the 10th annual National Tax Security Awareness Week, an initiative of the IRS and its Security Summit partners, including state tax agencies, the tax preparation industry, software developers, payroll and financial institutions.
The coalition works to protect the tax system and taxpayers from identity theft and associated fraud, particularly as scam activity surges ahead of Christmas and upcoming tax season.
The IRS highlighted a variety of scam types growing in frequency and sophistication. They include:
- Phishing and smishing: Criminals send emails or texts—known as phishing and smishing—posing as tax authorities or delivery companies to steal personal data or infect devices with malware. Opening links from these messages may damage your device.
- Social media scams: Fraudulent tax advice from influencers, scheme-promoting posts, and fake offers that mislead taxpayers over credit or refund eligibility. Posts may put people in touch with scammers.
- Targeting of seniors: Scammers often target people over 65 or nearing retirement, seeking personal details, financial information, or cash. Once they get money, they usually demand more. Some even push victims to tap retirement accounts, thus risking tax penalties and long-term security.
- Protection for businesses and tax professionals: The IRS reminds tax professionals of their legal duty to maintain a Written Information Security Plan and implement multi-factor authentication. Businesses should also strengthen security protocols and stay alert to cyber threats.
- Identity Protection PIN: An Identity Protection PIN (IP PIN) is a six-digit code that helps stop someone from filing a tax return using a taxpayer’s Social Security number or Individual Taxpayer Identification Number. Taxpayers who don’t already have an IP PIN can request one as a proactive safeguard against tax-related identity theft. Anyone with an SSN or ITIN—including those living abroad—is eligible to obtain an IP PIN.
What People Are Saying
IRS CEO Frank Bisignano said: "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.
"During this holiday season, people face the heightened risk of identity theft as criminals ramp up efforts to trick people into sharing sensitive personal information: identity thieves might use this information to try filing false tax returns and stealing refunds."
What Happens Next
The IRS and its partners are helping to intensify public information campaigns throughout December and into the 2025 filing year.
They said in a press release: "Many of the Security Summit partners have joined together to form the Coalition Against Scam and Scheme Threats. This group will be increasingly active during the upcoming tax season."
Victims of identity theft can visit Identity Theft Central for more information.
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