Tax Scams & Financial Fraud: What to Watch Out for in 2025

Each year, new scams emerge — and 2025 is no exception. At Arlyce Cleveland, Ltd., we want our clients to stay informed and protected. Fraudsters continue to target individuals and small businesses using increasingly sophisticated tactics, especially during tax season.

Here's what to look out for — and how to stay safe.

Top Scams Circulating in 2025

1. Fake IRS Emails or Texts (Phishing)

Scammers send emails or texts pretending to be from the IRS, claiming your “refund is delayed” or “you owe taxes.” These often contain malicious links or fake login pages to steal your personal information.

Tip: The IRS will never contact you by email, text, or social media to ask for personal or financial information.

2. Phone Scams: “You Owe Back Taxes”

You receive a threatening call from someone claiming to be an IRS agent, demanding immediate payment via gift cards, wire transfer, or crypto. They may spoof official-looking caller IDs.

Tip: The IRS does not call and threaten arrest. If you receive one of these calls, hang up and report it to the Treasury Inspector General.

3. Tax Preparer Fraud

Not all tax preparers are legitimate. Some shady individuals file false returns in your name, inflate deductions to get bigger refunds, or divert your refund to their own account.

Tip: Always use a credentialed and reputable firm like Arlyce Cleveland, Ltd. Check for PTINs (Preparer Tax Identification Number) and confirm they sign your return.

4. Fake “Government” Forms or Portals

Some scammers create fake websites that mimic IRS tools (like the refund tracker or online ID verification pages). These are often linked through phishing emails or social posts.

Tip: Only use websites ending in .gov — and access IRS tools directly through 

5. Identity Theft Through Data Breaches

Scammers use stolen personal information (like your SSN or bank account) to file fraudulent tax returns and claim your refund before you do.

Tip: Consider requesting an IRS Identity Protection PIN (IP PIN) for extra protection — a unique 6-digit code that prevents anyone else from filing a return in your name.

How You Can Protect Yourself

• File Early: Beat scammers to it — file before they can.

• Use Secure Portals: Only upload sensitive documents through encrypted tools like our client portal.

• Monitor Your Credit: Keep an eye on unusual activity or new accounts opened in your name.

• Never Share Personal Info via Email or Text: Always verify who you’re speaking with.

• Shred Documents: Properly dispose of old tax forms or financial records.

When in Doubt — Ask Us

If you’re ever unsure about a letter, email, or phone call that claims to be from the IRS or a tax agency — reach out to us directly before taking any action.

Call our office 

Stay smart. Stay secure.

And let Arlyce Cleveland, Ltd. help you navigate tax season with confidence.