Finance

New Scam Alert- IRS Text Message Claiming a $1,400 Refund Could Be the Start of Fraud

Published

2 weeks ago

February 21, 2025

Kelly

New Scam Alert- IRS Text Message Claiming a $1,400 Refund Could Be the Start of Fraud

Be cautious if you receive a text message claiming you are eligible for a $1,400 check from the IRS. According to the Better Business Bureau (BBB), this is a scam. Fraudsters are impersonating the IRS in an attempt to steal your personal details.

The SMS will claim that you qualify for a $1,400 Economic Impact Payment and ask you to submit your personal information to receive it.

The Phishing Scheme in Detail

IRS Phishing Texts: The message seems convincing because it references recent IRS announcements regarding stimulus payments.

The fraudulent text includes a link that looks like an official IRS website. If clicked, this link may install spyware or redirect you to a fake form that asks for money or your personal information.

Why It’s Fake: The IRS never contacts taxpayers via text, email, or social media. They will never request sensitive data through these channels.

The BBB has stated that all official communications from the IRS are sent through regular mail (snail mail), not by text.

How to Identify and Avoid IRS Scams

1. Verify Communications

Legitimate IRS notifications are always sent by traditional mail. Never trust emails or texts claiming to be from the IRS.

2. Avoid Clicking on Links

Do not click on links in unsolicited emails or messages. To check for any updates or tax-related information, visit the official IRS.gov website directly.

3. Watch Out for Urgency

Scammers often create a sense of urgency, pushing you to take immediate action. Always take your time to independently verify claims.

4. Report Suspicious Messages

If you receive any suspicious messages, report them to BBB.org/ScamTracker and forward them to phishing@irs.gov.

How the Scam Works

You may receive a message from what looks like the IRS, stating that you qualify for a $1,400 Economic Impact Payment. The text will urge you to provide your details so that the payment can be sent either as a check or deposited into your account within a couple of business days.

The fraudulent message includes a link that mimics an official IRS website, but clicking it may result in malware installation or a fake form requesting personal or financial information.

Reminder: The IRS will never ask for personal information through text messages, emails, or social media.

Could IRS Layoffs Affect Your 2025 Tax Refund?

IRS Staffing Cuts and Potential Impact

The IRS is facing severe cuts to its budget as part of broader federal government reductions. Recent reports from Reuters and The New York Times indicate that over 6,000 IRS employees will be laid off.

This follows cuts to other federal agencies such as the Department of Education, Department of Health and Human Services, Consumer Financial Protection Bureau, and more.

How Layoffs May Affect Taxpayers

The National Taxpayer Advocate, an independent body within the IRS, has raised concerns about the agency’s existing staffing shortage and its inability to hire and retain employees.

Certified public accountants (CPAs) have warned that taxpayers may face difficulties when seeking assistance or attempting to get quick tax refunds during the upcoming tax season due to the expected staffing shortages.

Key Differences Between Real and Fake IRS Communications

Real IRS Communication	Fake IRS Communication
Sent via regular mail	Sent via text message, email, or social media
Will never ask for personal or financial info directly	Requests personal info, bank details, or money
Includes your taxpayer ID number for verification	Often contains generic messages with no personal details
Uses IRS.gov website links	Links lead to phony IRS websites

It’s crucial to stay vigilant against phishing attempts disguised as official communications from the IRS. Always double-check information and avoid clicking on suspicious links. Remember, the IRS will never ask for personal information via text or email.

Additionally, with the IRS facing significant staffing cuts, taxpayers should brace for possible delays in services during the tax season.

FAQs

How do I know if a message is from the IRS?

The IRS never sends text messages, emails, or social media requests for personal information. Any IRS communication will come through snail mail.

What should I do if I clicked on a link in a suspicious IRS message?

If you’ve clicked a suspicious link, immediately run a virus scan on your device and change any passwords related to your financial accounts. Report the incident to the IRS at phishing@irs.gov.

Will IRS layoffs affect my 2025 tax refund?

It is possible that the IRS layoffs could delay services, including the processing of tax returns and refunds. Due to staffing shortages, there may be longer wait times for assistance and slower processing during tax season.