Whether they’re filing taxes for the first time or unsure how the IRS and tax rules work, Gen Zers are susceptible to falling to tax scams that target them via email, phone and online.
While some schemes might tax savings or a big refund, the truth is that you’re more likely to end up with lost money, penalties or stolen personal information. Falling for tax scams can even get you in trouble with the IRS and the law. To stay safe while you handle your taxes, learn how to recognize these six tax scams that target Gen Zers in 2025.
Also here are the best tax software and services available.
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IRS Scam Texts and Emails
Since Gen Zers are very comfortable with technology, scammers may take advantage by sending texts or emails supposedly from the IRS. These communications might look official and ask you to confirm personal information, pay a tax bill or claim some tax refund. If you respond, the scammer might be able to steal your identity or even lead you to commit fraud.
According to the IRS, these communications are phishing or smishing attempts you should report to the agency. If there’s a real tax issue, the IRS usually sends official letters in the mail.
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Threatening Tax Collection Calls
If you’re someone who avoids answering unexpected calls, you might have a lesser chance of falling for this tax scam. Some IRS imposters call to intimidate or threaten taxpayers into paying tax bills they don’t even owe. They might ask for a gift card or another unusual payment method and even have trouble explaining what your tax debt is.
The IRS would send a letter about real unpaid taxes, so never pay these impersonators or give them your personal details. If someone tries to scam you this way, jot down the phone number and details to report to the IRS and possibly the police.
Questionable Social Media Tax Advice
TikTok, Instagram and other sites feature influencers explaining things to do to cut your tax bill. While you can find some useful tax tips on social media, you’ll also come across talk of fake tax credits, pushes to lie about your income and claims you can take illegitimate deductions.
Believing these claims could actually increase your costs with IRS penalties and interest and lead to legal issues. To avoid scamming the IRS, be honest on your tax return and speak to a tax expert about any tax breaks or rules you’re unsure about.
W-2 Scams
Other scams involve the W-2 forms employers usually send you in late January. In some cases, you’ll get an email with a link asking you to confirm details to access your W-2 online, but the sender is really a scammer who wants to take your identity. Other scams involve receiving fake W-2s in the mail or following advice to alter your real W-2 or make a fake one.
If you receive your W-2 electronically, only download it directly from your employee portal or another official source and only use that real W-2 to file your taxes. Resist the urge to fake your W-2; the IRS cautioned about potential criminal charges (besides penalties) if you do so.
Shady Tax Preparation Services
Especially if you’re a first-time tax filer, you might fall for a dishonest tax preparer who is out to take your personal information and money. Some preparers promise a bigger refund by lying about your income, credits or deductions. Others burden you with high fees based on your refund amount or deposit the refund to their own bank account.
Always research tax preparers and their credentials before working with them. The IRS also advised avoiding tax pros who have unusual fees or pressure you into lying on your tax forms or agreeing to direct deposit your refund into a bank account that’s not yours.
Tax Relief Scams
While some legit companies help with setting up tax payment plans and making compromise offers with the IRS, they might mislead you into thinking you can’t get tax relief on your own without paying a high fee. Others might make unrealistic promises about wiping most or all of your tax bill or claim they offer a special tax relief program.
To protect yourself, get familiar with official IRS tax debt help options, which usually don’t require working with any tax relief company. You can also discuss your situation with a trustworthy tax professional.
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This article originally appeared on GOBankingRates.com: 6 Tax Scams Gen Z Needs To Watch for in 2025
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