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Holistic Wealth Blog

Beware of Tax Scams: What You Need to Know This Season

  • Writer: Candace Henry
    Candace Henry
  • Mar 19
  • 3 min read
Red background with white text "SCAM ALERT" surrounded by large white exclamation marks. Urgent and warning tone.
Key Takeaways

  • Scammers continue to refine their techniques. From phishing emails, fake tax preparers, and utilizing AI - fraudsters are using various tactics to steal personal and financial information. Always verify tax-related communications before responding.

  • Your best defense is awareness and caution. Be wary of promises of inflated refunds, unsolicited IRS contacts, and misleading social media tax advice.

  • Use secure channels for document exchange. To protect your sensitive information, always use a secure client portal for uploading and receiving tax documents (like your Novi Wealth client portal). This ensures that your data remains safe from scammers and cybercriminals.


As tax season ramps up, so do scams targeting taxpayers. The IRS has released its 2025 "Dirty Dozen" list of tax scams and, although we encourage you to check out the full list, here are some of the most common and dangerous scams to be aware of this tax season.


Common Tax Scams to Watch For
A masked thief uses a fishing rod to steal data from a laptop. Items: piggy bank, credit card, envelope. Background: teal, cartoon style.

  1. Phishing & Smishing Scams – We have previous written about how common and convincing scam emails or texts can be (check out that blog here). During tax season, fraudsters will pretend to be the IRS as a way to con personal identifiable information out of unsuspecting victims. Remember: the IRS will never contact you this way without your permission first.


  2. Fake IRS Communications – In the same vein, some scammers may impersonate the IRS via phone or mail, demanding immediate payment. This may seem more legitimate but the IRS will always contact you via official letters first and never demand payment over the phone. (Here's the IRS webpage on How to Know It's the IRS.)


  3. Inflated Refund Claims – Beware of tax preparers promising unusually high refunds. They may be falsifying information, which can lead to audits and penalties. Remember, if it seems too good to be true, it probably is.


  4. Fake Charities – We have many clients with charitable hearts; unfortunately, even that is being taken advantage of by fraudsters who exploit their goodwill by creating bogus charities to steal donations and personal data. Always verify a charity before donating using websites like Charity Navigator or submitting grants through your donor advised fund (a quick email to your Operations Associate gets the job done).


  5. Ghost Tax Preparers – Some tax preparers don’t sign returns, leaving you liable for mistakes. Always use a verified tax professional with a PTIN.


    Form section for a paid preparer with fields for name, signature, date, PTIN, firm's name, address, phone, EIN, and self-employed checkbox.

  6. Social Media Tax Scams – Misinformation spreads quickly online, leading some to make fraudulent claims unknowingly. Trust only official IRS sources or financial professionals. Also beware, this can be another attempt by scammers to get you to provide your personal identifiable information by "signing up" for help.


How to Protect Yourself

✅ Verify Before You Trust – If you receive a suspicious tax-related email, call, or letter, double-check with the IRS or your financial advisor before taking action. (You can verify if the IRS sent you a letter or notice by searching for it on IRS.gov)


✅ Use a Secure Document Portal – The safest way to share sensitive tax documents is through a secure client portal. Avoid sending tax forms via email or text. All Novi Wealth clients are entitled to a Novi Wealth Client portal. We highly recommend utilizing yours. If you need help navigating your client portal, we encourage you to watch our video "How To Get The Most Out Of Your Client Video," or call our office.



✅ Work with a Trusted Tax Professional – Choose a reputable tax preparer who signs returns and follows ethical practices.  If something feels off, trust your instincts and if you need assistance finding a reputable tax preparer, please do not hesitate to give your Novi Wealth advisor a call, we have a list of reputable professionals.

By staying informed and using secure methods for handling tax documents, you can protect yourself from fraud this season. If you have any questions or need a secure way to share tax-related information, don’t hesitate to reach out. Your financial security is our top priority!




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