With tax season in full swing, many baby boomers may be looking for ways to cut their tax bills or get relief from tax debt. While the IRS offers various opportunities for reducing taxes and handling payments, scammers see opportunities to con unknowing taxpayers out of their money and personal information.
According to the Better Business Bureau, tax collection scams ranked sixth out of the reported scams as of January 2025. Some common schemes involve incorrect tax advice, questionable tax professionals, and fake tax benefits and refunds.
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Here are six tax scams that boomers should recognize so they don’t become victims in 2025.
Fraudulent IRS Communications
Last year, the IRS warned that seniors should watch for IRS impersonation schemes over email, phone and text. These fraudulent communications may involve scammers threatening you into paying some overdue tax bill, tricking you into thinking you’ll get a special refund or saying you’ll face consequences if you don’t hand over financial details or some type of gift card.
Keep in mind that the IRS sends official notices to your house by mail and won’t make unusual requests online or over the phone. Rather than falling for an IRS impersonator’s threats or claims, be skeptical and ask the IRS directly about whether it needs something from you.
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Misleading Tax Tips on Social Media
Some tax tips you find online may be misinformation that can lead to potential financial and legal problems if you follow through. “Social media is an easy way for scammers and others to try encouraging people to pursue some really bad ideas, and that includes ways to magically increase your tax refund,” according to IRS commissioner Danny Werfel, as reported by the IRS.
The IRS mentioned bad social media advice that encouraged misusing W-2 information, claiming nonexistent credits and making up household employees to save on taxes.
Before following any tax advice you hear, run it by your tax professional. They can both help you avoid potential trouble with the IRS and suggest legitimate tax savings opportunities.
Disaster Relief Fraud
Boomers who have experienced a natural disaster might be targeted by scammers with claims of tax benefits for personal property losses. According to the IRS, this scheme can involve IRS impersonators or charities claiming they can help you get some disaster deduction or credit. Unfortunately, this may lead to handing over money, your Social Security number or other information to a scammer.
There’s a real deduction for casualty losses under some circumstances. If the loss occurs because of a federally declared disaster, losses are generally deductible. Through the end of 2025, losses are not deductible otherwise, per the IRS.
To get accurate information about how disasters may affect your tax bill, it’s best to contact the IRS directly.
Fake Charity Scams
Scammers like to target baby boomers who enjoy giving to charities and deducting contributions on their tax returns. They might approach you online or outside a local business to ask for donations for causes like hurricane relief, cancer research or humanitarian work. However, that charity might not be a real one — or at least not an organization eligible for a tax deduction.
Be suspicious of people who randomly ask for donations, and look up information about any charity before handing over money. The IRS tax-exempt organization search tool is also a good source for seeing whether a charity is real and whether your donations are deductible.
Tax Debt Help
If you owe the IRS, watch out for calls, letters and emails from companies saying they can wipe your tax debt. Some tax relief companies target desperate taxpayers and offer to negotiate tax debt amounts or create affordable payment plans in exchange for what might be a large fee, per the IRS.
Falling for this scheme can lead to paying for tax relief you could’ve gotten by yourself or giving cash to someone who doesn’t help you at all. Instead, head directly to the IRS website to learn about official options, such as an offer in compromise and short- or long-term payment plans.
Shady Tax Preparers
Unfortunately, the professional you trust to complete your tax return could try to scam you. The IRS warned about ghost preparers who might hit you with questionable fees, make fraudulent claims on your return and provide their own banking information for your tax refund direct deposit.
Always carefully vet the tax preparer you work with and look out for some common warning signs, such as questionable claims, unclear fees, and refusal to use your tax documents or sign your return. Besides refusing to work with a shady tax preparer, report them to the IRS.
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This article originally appeared on GOBankingRates.com: 6 Tax Scams Boomers Need To Watch For in 2025
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