Scammers are getting bolder, sneakier, and more tech-savvy every year. And they’re not just targeting everyday taxpayers. They’re going after tax professionals and small business owners too.
The IRS just dropped a fresh warning on the most common tax scams floating around in 2024. And if you’ve got money, a business, or a tax pro login – you’re on the hit list.
Here’s what’s out there, who’s at risk, and how to protect yourself (and your clients) before it’s too late.
1. The Social Media Trap: Bad Advice = Big Trouble
TikTok, Instagram, Reddit… they’re full of “tax hacks” that are more scam than strategy.
One of the biggest? Fake posts pushing made-up credits like the so-called “Self-Employment Tax Credit.” This is a viral lie that’s duped gig workers and entrepreneurs into thinking they can cash in up to $32,000 just for being self-employed during COVID.
Let’s set the record straight. There is no “Self-Employment Tax Credit.” What these shady promoters are misrepresenting is a much narrower benefit related to Sick and Family Leave credits. The worst part: most people don’t even qualify.
The IRS is now watching these filings like a hawk, and submitting a bogus claim could flag you for audit, repayment, or even penalties. It’s just not worth it.
Bottom Line: If you saw it on TikTok (or any other Social Media outlet), double-check it with someone who actually knows the tax code.
2. The “Helpful Stranger” Scam: IRS Online Account Edition
There’s a new twist on an old scam that’s been around for ages. People are pretending to help you “set up your IRS Online Account” on IRS.gov. Sounds nice, right? The good samaritan just doing their part for society.
Here’s the problem: they’re not helping. They’re harvesting your Social Security number, date of birth, and bank info to steal your identity. And then, they try to clean you out completely. This often comes with a large bill to pay and huge mess to fix afterwards.
If someone offers to help you set up your IRS account and they’re not your trusted tax pro, walk away. The only place to access your account is directly at IRS.gov.
3. Phishing & Spear-Phishing: Hackers in Disguise
Phishing is still a goldmine for criminals. But it’s gotten more personal.
“Spearphishing” is where they target you directly (maybe by name, maybe by role) using emails or texts that look legit but are laced with malware or fake login pages. One click, and they’ve got access to your systems, your client data, your bank accounts… the works.
If you’re a tax professional, this one’s especially dangerous. A successful spearphishing attack can lead to full-blown identity theft. Where the scammer pretends to be you, files fraudulent returns, and reroutes refunds.
Pro Tip: Never click a link in a suspicious email, even if it looks like it came from the IRS or your bank. When in doubt, go to the source directly.
4. The Ghost Preparer: When Your “Tax Pro” Vanishes
There’s a special place in audit purgatory for the so-called “ghost preparer.”
Here’s how it works: they prepare your return, promise a fat refund, and then refuse to sign the return or list their Preparer Tax ID Number (PTIN) – which is legally required. Some even charge based on the size of your refund. Which is not just shady… it’s a red flag that they’re likely making things up to inflate your refund.
Remember, you’re on the hook for whatever fraud or mistakes they made… not them.
Rule to Remember: If they won’t put their name on it, don’t put yours either.
5. Offer in Compromise Mills: False Hope, Real Fees
Yes, the IRS has a real program called an Offer in Compromise. It lets people settle their tax debt for less than they owe if they legitimately can’t pay. But…
Scammy tax mills are abusing this system by promising desperate people a “pennies on the dollar” deal even when they don’t qualify. Then charging thousands in fees and ghosting them when the IRS rejects the offer.
Don’t fall for it. If you’re struggling with tax debt, use the free pre-qualifier tool at irs.gov to see if you actually meet the requirements before you pay anyone to file an application.
Final Thought: A Little Skepticism Can Save You a Lot of Money
If it smells like a shortcut… it’s probably a trap. Tax scams are everywhere right now. And with AI tools and deepfakes entering the scene, they’re only going to get harder to spot.
The best defense? Use trusted professionals, question anything that feels too good to be true, and never share sensitive info unless you know exactly who you’re dealing with.
Need help reviewing a sketchy “tax offer” you got? Or want to make sure your business isn’t exposed to scams like these? You can Book a free consultation and we’ll walk through it together, no pressure.
Welcome to the New Age of Accounting. Let’s begin.
Chris is the Managing Partner at Weston Tax Associates, a best-selling author, and a renowned tax strategist. With over 20 years of expertise in tax and corporate finance, he simplifies complex tax concepts into actionable strategies that drive business growth. Originally from Sweden, he now lives in Florida with his wife and two sons.
