Holiday tax scams: charities, seniors, social media

Scammers become more active as both generosity and year-end tasks accumulate for taxpayers. Here are four schemes we expect to spike around Thanksgiving and into filing season, along with clear steps tax pros can take to protect your clients now.

Fake charities

How it shows up

Fraudsters create charity-lookalike names, spoofed websites and urgent appeals for funds, tied to disasters or local fundraising campaigns. They may push for immediate payment or ask for personal details "to issue a receipt." The IRS has repeatedly warned about fake charities that exploit disaster giving and includes them in its annual "Dirty Dozen" list. Remind clients that a legitimate organization, one eligible for a donor’s tax deduction, will appear in the IRS Tax Exempt Organization Search. 

What to do

Before donating, verify the group in the IRS search tool and read the listing carefully. Caution clients against paying by wire, crypto or gift cards. If they want a tax deduction, advise them to keep a written acknowledgment from the charity that meets the substantiation rules. If anything seems inconsistent or high pressure, stop. Find the charity’s phone number independently (from its website or the IRS search listing) and call to confirm before giving or sharing any information.

Older adults targeted

How it shows up

Elderly clients and caregivers report receiving calls, texts, emails or direct messages (DMs) from individuals claiming to be from "the IRS," demanding immediate payment or sensitive data. Remind clients that the IRS never initiates contact by email, text or social media, and it won’t threaten arrest or insist on unusual payment methods. Unannounced in-person visits are now extremely rare, with limited exceptions for serving summonses, subpoenas, seizing assets or criminal investigations.

What to do

Create a concise "pause and verify" checklist for seniors and those assisting them. If a client receives a surprise digital contact, instruct them not to click on links or provide any data. They should log in to their IRS Online Account or call the IRS using a number from IRS.gov, not a link or phone number in the message. 

If someone shows up, clients should ask to see both a pocket commission and a government ID, then verify using a phone number from IRS.gov.

As their tax pro, keep your power of attorney and third-party designee records handy so you can step in and confirm any notices received. 

Gift card shakedowns

How it shows up

Scammers pressure taxpayers to "pay a tax bill" with store cards, online gift cards or prepaid debit cards, often threatening penalties or arrest by the police. The IRS is blunt on this point, and the agency has re-upped this warning repeatedly during the holidays and ahead of filing season: the IRS never asks for or accepts gift cards as payment. 

What to do

Coach clients to hang up, save the evidence and report. They can file a report with the Federal Trade Commission and forward phishing emails to [email protected]. If they did share card numbers, urge them to contact the card issuer immediately and document everything. In your practice materials, list the IRS's legitimate payment options, then repeat the line, "No gift cards, ever." 

Bad tax advice on social media

How it shows up

Viral "tax hacks" promise risk-free refunds or deductions. This year's Dirty Dozen again highlights misleading posts about credits and tax form abuses that can lead to penalties and amended returns. It's a fast pipeline from a share on social media to an inflated return that puts both the taxpayer and preparer at risk. 

What to do

Give clients a two-question sniff test: (1) Does the advice come from IRS guidance or a credentialed source that cites it? and (2) does it apply to their facts as documented, not someone else's anecdote? When a client forwards a "hack," reply with the relevant IRS information and a short note explaining the correct rule. Keep a standing resource link to the Dirty Dozen hub in staff and client communications so everyone knows where to check claims quickly. 

Share this with clients and caregivers and remind them you’re their first call before they donate, pay or click.