Impostor Scams on the Rise During Tax Season

With tax season here, the Better Business Bureau is warning consumers about a rise in tax company impostor scams that are targeting people across the country. These scams often involve phishing phone calls from fraudsters claiming consumers owe back taxes and must act immediately to avoid penalties or legal action.

BBB has received reports from consumers who say scammers are posing as tax collection or tax relief services, using legitimate-sounding business names to appear credible. Reported names include “American Tax Consultants,” “US Tax Relief,” “Tax Relief Group,” and “Tax Resolution Oversight Department,” among others.

In many cases, legitimate businesses or organizations do exist with similar names and provide lawful tax preparation or filing services. However, the scam operations are not affiliated with those businesses and may be falsely using their names as impostors. BBB has added alerts to affected business profiles, including American Tax Consultants and others, to warn consumers about this impersonation activity. American Tax Consultants has informed BBB that their business name is being used without authorization and that they do not engage in tax collection activities and will never contact consumers to request payment for back taxes

In one recent example, a consumer reported receiving this message to BBB Scam Tracker, “This is Daniela Martinez with the tax review unit. I’ve been trying to connect since the new year. Your file was flagged for manual review and still shows some unresolved items. Possibly an older balance or a couple of missing returns…”

Like all government agencies, the IRS will attempt to reach by mail before iniating contact over the phone. The agency will not demand immediate payment over the phone.

In another BBB Scam Tracker report, a consumer shared this message, “Hello this is Nancy from American Tax Consultants. I’m following up on the notice we sent out regarding your back taxes and missed filings your account this may be our only attempt to reach you and it’s important that you speak to us today please call us right away…”

In a different BBB Scam Tracker report, someone shared this message, “Thanks to your state and a new budget allocation. You may qualify for IRS FreshStart or similar resolution programs. Or even settle it completely, depending on your financial situation I am available till 5 PM today Please call me back at 866 878 67051…”

There is a Fresh Start Program to help individuals and small business owners settle their debt with the IRS, but you don’t need to pay a middleman to see if you qualify. You can go on the IRS website to apply.

How the scam works

Victims report receiving unsolicited voicemail messages or calls claiming their tax file has been flagged, that they missed a filing deadline, or that they qualify for a limited-time IRS relief program. The messages often warn that this may be the final attempt to make contact and urge immediate action.

Examples of scripts used by fraudsters include claims such as:

• A notice was sent regarding back taxes or missed filings.
• The consumer’s file was flagged after an extension deadline.
• New government or IRS relief programs are available for a limited time.
• Immediate payment or enrollment is required to avoid further consequences.

These calls often reference fake agent names, direct phone numbers, case IDs, or “resolution departments” to sound official.

What you should know

The IRS does not initiate contact with taxpayers by phone, email, or text about unpaid taxes without first sending an official letter by mail. Any demand for immediate payment or threats of arrest, lawsuits, or license suspension are major red flags.

BBB urges consumers to remember these key safety tips:

• The IRS always starts communication with a mailed letter.
• Never send money or personal information under pressure.
• Legitimate tax agencies do not request payment via gift cards, wire transfers, or payment apps.
• Take time to research before responding to any tax-related claim.

 

Whenever you are unexpectedly contacted by a business, look up the business on BBB.org to confirm its legitimacy, reputation, and contact information before responding. Those working with trusted, BBB Accredited tax professionals should also consult them before taking action.

For more information:
See BBB’s tax tips for more resources. If you are the victim of tax identity theft in the U.S., contact the IRS at 1-800-908-4490. You should also file a complaint with the Federal Trade Commission (FTC) at ftc.gov/complaint or by calling 1-877-FTC-HELP. The FTC also offers a personalized identity theft recovery plan at identitytheft.gov.

ABOUT BBB: The Better Business Bureau has empowered people to find businesses, brands, and charities they can trust for over 110 years. In 2023, people turned to BBB more than 218 million times for BBB Business Profiles on 5.3 million businesses, and 80,000 times for BBB charity reports on about 12,000 charities, for free at BBB.org. The International Association of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States and Canada. BBB Serving Central East Texas was founded in 1985 and serves 19 counties in East Texas.