BBB Warns of Rising Tax Scams as Filing Season Begins

Criminals use stolen personal data to file fraudulent returns before victims can file legitimately

Mar. 14, 2026 at 3:34am

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As tax season gets underway, the Better Business Bureau (BBB) is warning consumers to be on the lookout for tax scams. These schemes often involve criminals impersonating the IRS or using stolen personal information to fraudulently claim tax refunds before the legitimate taxpayer can file. Victims may only discover the fraud when their own tax return is rejected due to a duplicate filing.

Why it matters

Tax identity theft can be difficult to detect, as many victims don't realize what has happened until they try to file their taxes. By that time, the scammer may have already collected the refund. These scams can cause significant financial and administrative headaches for victims.

The details

Scammers typically gather personal information through phishing emails, fraudulent text messages, and fake websites designed to capture sensitive data. In some cases, criminals gain access to information through data breaches or compromised tax preparation services. Once the information is obtained, the scammer files a tax return early in the season and claims the refund. Other forms of tax fraud include filing returns using the identities of deceased individuals or claiming children as dependents without authorization.

  • Tax filing season is now underway.

The players

Better Business Bureau (BBB)

A nonprofit organization that sets standards for ethical business behavior and alerts the public to fraud, scams, and unethical business practices.

Internal Revenue Service (IRS)

The U.S. government agency responsible for administering and enforcing federal tax laws.

Robyn Householder

President and CEO of the Better Business Bureau.

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What they’re saying

“Tax identity theft can be difficult to detect because many victims don't realize what has happened until they try to file their taxes. By that time, the scammer may have already collected the refund.”

— Robyn Householder, President and CEO (Clarksville Online)

What’s next

Consumers should contact the IRS directly to verify any suspicious notices they receive, and report identity theft to the Federal Trade Commission and Better Business Bureau.

The takeaway

This tax season, it's crucial for consumers to be vigilant about protecting their personal information and filing their taxes as soon as possible to reduce the risk of falling victim to tax-related identity theft scams.