Why the Better Business Bureau’s early warnings matter, and why filing season remains the single most reliable window for tax fraud to succeed
On January 20, the Better Business Bureau issued a warning urging taxpayers to stay alert as filing season approaches. Scammers, according to the BBB, are expected to be especially aggressive this year, leaning on identity theft, fake IRS contact, and fraudulent tax preparation services to take advantage of the stress that builds around filing.
Filing season has a particular way of putting people on edge. Deadlines, refund anticipation, and shifting tax rules combine to create pressure that even organized taxpayers feel, and scammers are built to exploit exactly that pressure. They step in at moments of uncertainty, posing as trusted authorities, offering shortcuts, or manufacturing urgency that discourages anyone from taking a second look. Most tax season scams don’t succeed because they’re sophisticated. They succeed because they blend seamlessly into what taxpayers already expect to see this time of year.
That’s why visibility matters as much as awareness does. At Tax Guardian, the focus is on what’s happening inside IRS systems, where tax related fraud and identity misuse most often surface first. By monitoring IRS account activity tied to a taxpayer’s identity, we help people notice unusual filings, account changes, or refund activity early, often well before a scam turns into a delayed refund or months of back and forth with the IRS.
Why the BBB Is Warning Taxpayers Now
The Better Business Bureau doesn’t issue tax season warnings casually. When it does, it’s typically because a pattern is already emerging in the data it tracks. This year’s warning points to scammers gearing up earlier and casting a wider net well ahead of filing season, before most taxpayers have even started preparing their returns.
What’s driving the increase isn’t simply volume. It’s opportunity. Filing season creates a narrow window in which people genuinely expect to hear about refunds, credits, or tax issues, and that expectation lowers everyone’s baseline skepticism. Combine that with ordinary confusion around tax rules and a natural desire to get filing over with, and it becomes far easier for a scam to slip through unnoticed. The BBB’s January warning reflects a pattern consumer protection agencies see every year: fraud activity spikes precisely when stress and urgency are at their highest.
The Types of Tax Scams the BBB Is Seeing
Scam tactics shift somewhat every year, but the BBB has flagged several recurring themes showing up again this season. None of these are new schemes exactly. They’re familiar patterns repackaged in more convincing ways than in years past.
Identity theft leading to fraudulent tax filings remains one of the most damaging categories, since it can result in a legitimate return being rejected or delayed for months. Phishing emails posing as the IRS or a tax software provider continue to be effective largely because they arrive during a stretch when taxpayers are already expecting official correspondence. Fake IRS phone calls demanding immediate payment rely on the same urgency tactic that shows up across nearly every scam on this list. And fraudulent tax preparers offering unusually fast filing or inflated refunds prey on taxpayers looking for a shortcut through an already stressful process.
What ties all of these together is how closely they mirror legitimate tax activity. Very few of these messages look suspicious at first glance, particularly during a period when receiving tax related communication is simply expected.
Fake Tax Preparers and Fraudulent Consulting Services
One area the BBB continues to flag closely is fraudulent tax preparation. These operations don’t always exist purely online or anonymously. In some cases, they present as fully legitimate businesses, complete with storefronts, advertising, and professional sounding names, which makes them considerably harder to identify as fraudulent on sight.
A few warning signs tend to repeat across these operations. Promises of unusually large refunds compared to what a taxpayer’s actual situation would support. Claims of being able to file faster than a legitimate preparer would. Fees calculated as a percentage of the refund rather than a flat rate for the work performed. And a refusal to sign the return they prepared, which shields the preparer from responsibility if the filing turns out to be inaccurate or fraudulent.
The BBB’s core recommendation here is straightforward: research any tax preparer before handing over sensitive information. Presenting as a consultant or a professional service doesn’t automatically mean someone is qualified, licensed, or acting in a taxpayer’s best interest.
How Tax Scams Target Different Age Groups Differently
One of the more revealing details in recent BBB data is just how targeted these scams have become. Different age groups get approached through different channels, tailored to how they communicate and what concerns are most likely to resonate with them.
Younger adults, roughly ages 18 to 24, are frequently targeted through social media and messaging apps, where scammers request personal or banking information under the guise of tax help or refund assistance. Middle aged adults, roughly 35 to 54, more often encounter identity theft attempts and back tax demands, frequently tied to the complexity of family filings or multiple income sources. Older adults, roughly 65 to 74, are disproportionately targeted by payment based scams, including threats involving supposedly unpaid taxes or frozen bank accounts.
These patterns are worth taking seriously because they explain why a single, generic warning doesn’t protect everyone equally. Effective awareness has to match the actual channels and pressure points scammers are using against each group, not a one-size-fits-all description of tax fraud.
How Scammers Try to Reach You
According to BBB reporting, tax related fraud attempts most commonly arrive through phone calls, text messages, email, and social media platforms, roughly in that order of frequency. The specific requests tend to follow a familiar script as well: Social Security numbers or tax ID numbers, immediate payment of supposed back taxes, or bank account and credit card details offered up under pressure.
It bears repeating because it remains the single most reliable test available: the IRS does not typically initiate contact by phone, text, or social media to demand immediate payment. Pressure and urgency, more than any other single signal, are the clearest indicators that a tax related message is a scam rather than legitimate correspondence.
What the BBB and IRS Want Taxpayers to Remember
Both organizations converge on the same core advice, which is worth internalizing rather than treating as generic caution. Slow down before responding to anything tax related that arrives unexpectedly. Verify the source of any message independently, rather than using contact information the message itself provides. And never share personal or financial information while under pressure, regardless of how urgent or official the request appears.
Most scams succeed through speed, not sophistication. Creating even a small amount of space to pause and verify is frequently enough, on its own, to stop one before it does any damage.
Practical Ways to Reduce Risk This Tax Season
The BBB recommends a handful of habits that meaningfully reduce exposure without requiring constant vigilance. Research any tax preparer thoroughly before hiring them. Avoid clicking links embedded in unsolicited tax related messages, regardless of how legitimate the sender appears. Treat tax advice circulating on social media with real skepticism rather than acting on it directly. File as early in the season as possible, since a legitimate return already on file closes off several common fraud vectors. And pay ongoing attention to IRS notices and account activity rather than only checking in once something seems wrong.
None of these steps eliminate risk entirely, but together they make a taxpayer a considerably harder target than the average one.
The Bottom Line
Tax scams are seasonal, predictable, and persistent. The BBB’s warning is less a prediction of something new than a reminder of something that happens every year around this time, which is exactly why it’s worth taking seriously rather than dismissing as routine.
Awareness, not panic, remains the most effective defense available to taxpayers. But awareness works best paired with actual visibility into what’s happening inside a taxpayer’s own IRS account, since many of these scams only become obvious once a filing has already gone wrong. At Tax Guardian, monitoring IRS activity tied directly to a taxpayer’s identity is built around exactly that gap, helping taxpayers detect unusual filings, account changes, or refund activity early, often before a scam turns into a lengthy delay or a prolonged resolution process.
Filing season doesn’t have to be reactive. Knowing what to watch for, combined with real insight into what’s happening behind the scenes, makes it possible to respond calmly and confidently rather than under pressure.
Frequently Asked Questions
Why did the BBB issue a tax season scam warning?
The Better Business Bureau issues these warnings when it observes emerging fraud patterns, and this year’s warning reflects scammers starting earlier and casting a wider net than in previous seasons, well ahead of most taxpayers preparing their returns.
What types of tax scams is the BBB seeing this season?
Common categories include identity theft leading to fraudulent filings, phishing emails posing as the IRS or tax software providers, fake IRS phone calls demanding immediate payment, and fraudulent tax preparers offering inflated refunds or unusually fast filing.
How can I tell if a tax preparer is fraudulent?
Warning signs include promises of unusually large refunds, claims of filing faster than competitors, fees based on a percentage of the refund rather than a flat rate, and a refusal to sign the return they prepared.
Do scammers target different age groups differently?
Yes. Younger adults are often targeted through social media and messaging apps, middle aged adults frequently encounter identity theft and back tax demands, and older adults are disproportionately targeted by payment based scams involving threats of frozen accounts or unpaid taxes.
How do most tax scams initially make contact?
According to BBB reporting, fraud attempts most commonly arrive through phone calls, text messages, email, and social media platforms, generally in that order of frequency.
Does the IRS contact taxpayers by phone or text to demand payment?
No. The IRS does not typically initiate contact by phone, text, or social media to demand immediate payment. Any message doing so should be treated with significant suspicion regardless of how official it appears.
What is the most reliable way to spot a tax scam?
Pressure and urgency are the most consistent red flags across nearly every type of tax scam. Slowing down to verify a message’s source independently, rather than responding immediately, is usually enough to avoid falling for one.
What should I do if I receive an unexpected tax related message?
Avoid clicking any links, verify the sender through official channels rather than the contact information provided in the message itself, and never share personal or financial information while under time pressure.
Can filing early reduce my risk of tax scams?
Yes. Filing early closes off several common fraud vectors, including the risk of a fraudulent return being filed under a taxpayer’s Social Security number before their legitimate return is submitted.
How does Tax Guardian help protect against these scams?
Tax Guardian monitors IRS account activity tied to a taxpayer’s identity, helping surface unusual filings, account changes, or refund activity early, often before a scam results in a delayed refund or a lengthy resolution process.
