Tax Season Scams: What Businesses Need to Watch Out For

February isn’t just about heart-shaped chocolates and overpriced dinner reservations. It’s also the start of peak tax season—and scammers are gearing up to take advantage. While no one enjoys dealing with taxes, cybercriminals have made it even worse, targeting individuals and businesses with sophisticated tax-related fraud schemes.

For businesses across healthcare, manufacturing, legal, accounting, and recreational industries, tax season presents a unique risk. Whether you're running a healthcare clinic, managing a manufacturing plant, leading a law firm, handling sensitive financial data, or operating a country club, tax fraud can jeopardize your operations and compromise sensitive information. A breach or scam doesn’t just put finances at risk—it can also threaten client trust, compliance, and business continuity.

The IRS reports that tax-related scams surge between January and April every year, with fraudsters evolving their tactics to deceive businesses and professionals. Last year, one of the biggest fraud schemes involved the Employee Retention Credit (ERC), with scammers misleading business owners into applying for credits they didn’t qualify for and then charging hefty fees. The problem became so widespread that the IRS set up a withdrawal program for businesses that realized they had fallen for fraudulent claims.

Let’s break down the most common tax-season scams and how businesses across different industries can stay protected.

1. Phishing and Smishing Scams

Scammers often impersonate the IRS through emails (phishing) and text messages (smishing), claiming urgent action is required. These messages may promise a refund, demand immediate tax payments, or request sensitive information like Social Security numbers or tax IDs.

• Healthcare Providers: In 2023, an Ohio-based medical billing company fell victim to a phishing attack where scammers impersonated a federal agency, gaining access to patient financial data. (Source: FTC.gov)

• Manufacturers: A manufacturing firm in Michigan reported a phishing email requesting employee tax details, resulting in multiple cases of identity theft. (Source: IRS.gov)

• Law Firms: A New York law firm was defrauded when scammers posed as IRS agents demanding tax compliance documentation, leading to a breach of client financial records. (Source: Law.com)

• Accounting Firms: In a high-profile case, fraudsters targeted an accounting firm in Texas with fake tax software updates, stealing client Social Security numbers and filing fraudulent returns. (Source: AccountingToday.com)

• Recreational Facilities: A golf club in Florida received fraudulent IRS penalty notices, pressuring the business to pay thousands in fake fines. (Source: IRS.gov)

How to prevent it: The IRS doesn’t initiate contact through email or text messages. If you receive a suspicious message, don’t click on any links—report it to phishing@irs.gov and verify any tax-related inquiries directly on IRS.gov.

2. Fake Online Account Assistance

Cybercriminals will offer to “help” set up an online IRS account for you, tricking you into handing over personal and financial details. Once they have access, they can file fraudulent tax returns, steal refunds, and even compromise your business’s financial accounts.

• Healthcare Clinics: In 2022, a cybercriminal group posed as IT consultants offering tax portal security services, stealing financial details from over 20 clinics. (Source: FTC.gov)

• Manufacturing Firms: A Chicago-based auto parts manufacturer fell for an IRS account setup scam, leading to a $200,000 fraudulent tax return. (Source: Justice.gov)

• Legal Practices: A firm specializing in corporate law was deceived into providing login credentials for an IRS portal, resulting in compromised escrow accounts. (Source: Law.com)

• Accounting Agencies: A CPA firm in Georgia had its entire client list stolen after falling for a fraudulent IRS help desk scam. (Source: AccountingToday.com)

• Country Clubs & Recreation Centers: A ski resort in Colorado reported unauthorized IRS account access, leading to fraudulent refunds. (Source: IRS.gov)

How to prevent it: Always set up your IRS account directly through IRS.gov, and never share login credentials with third parties. If someone offers unsolicited assistance, it’s a scam.

3. Fraudulent Fuel Tax Credit Claims

Some scammers push fraudulent Fuel Tax Credit claims, convincing businesses to claim a credit they’re not eligible for. This has become a major problem for business owners, with bad actors charging hefty fees to file false claims—leaving you liable for IRS audits and penalties.

• Healthcare Facilities: A medical transport company was penalized after falsely claiming fuel tax credits following bad advice from scammers. (Source: IRS.gov)

• Manufacturing Plants: A food production company in California lost over $500,000 after falling for a scheme promising fuel tax refunds. (Source: Justice.gov)

• Law Firms: A legal practice specializing in environmental law unknowingly filed fraudulent claims after being misled by a tax consultancy firm. (Source: Law.com)

• Accounting & Auditing Firms: A group of accountants was caught in a scam where fraudsters charged fees for fabricated tax credit applications. (Source: AccountingToday.com)

• Recreational Facilities: A country club in Texas was targeted by a scam advertising energy tax credits, resulting in an IRS investigation. (Source: FTC.gov)

How to prevent it: If your business is considering a Fuel Tax Credit, ensure eligibility by consulting a trusted tax professional before making any claims.

If It Sounds Too Good to Be True, It Probably Is

Scammers prey on the complexity of tax laws, promising easy refunds and lucrative tax breaks. But shortcuts in tax filing can lead to serious legal and financial consequences. Businesses across all industries—healthcare, manufacturing, legal, accounting, and recreational—must remain vigilant to avoid falling into these traps.

Stay vigilant this tax season. If something doesn’t seem right, double-check before you act. You can also review the IRS Dirty Dozen list for the most common scams and prevention tips.

And if cybersecurity is a concern for your business, Securafy can help. Our tailored IT solutions protect sensitive financial, operational, and client data, ensuring compliance and security—during tax season and beyond.