Quick Answer: The Better Business Bureau is warning about a surge in tax company impostor scams this season. Scammers are using the names of real tax firms—like American Tax Consultants, U.S. Tax Relief, and Tax Relief Group—to pressure people into paying fake tax debts immediately. With $4.49 billion in tax fraud identified by the IRS in 2025, this year’s tax season is especially dangerous.
Tax season is the Super Bowl for scammers. And this year, they’re not just pretending to be the IRS—they’re impersonating real tax companies you might actually recognize. The Better Business Bureau says reports are surging, and the scams are getting smarter.
How the Scam Works
According to BBB spokesperson Cameron Nakashima, scammers are impersonating legitimate tax-related businesses to make their pitch sound credible. They’ll call or leave voicemails claiming:
- Your tax file has been “flagged”
- You missed a filing deadline
- You qualify for a “limited-time IRS relief program”
- This is the “final attempt” to contact you before legal action
The key difference from the old IRS-impersonation scam: these scammers use the names of real companies like American Tax Consultants, U.S. Tax Relief, and Tax Relief Group. The BBB has added alerts to affected business profiles, but there are “probably a dozen more” firms being impersonated.
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Why This Year Is Worse
According to BBB reports, new tax deduction rules have created extra confusion among taxpayers—and scammers feed on confusion. When people aren’t sure what’s legitimate, they’re more vulnerable to a convincing-sounding call.
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The Kaplan Group analyzed 1,384 BBB Scam Tracker reports in 2025 and found that tax collection scams hit especially hard in certain states:
- Texas: $2.1 million in losses from just 15 successful scams
- California: Most reports overall, 17.3% of total losses
- Massachusetts: Average loss of $240,000 per incident (high-value targets)
Scammers don’t need you to believe them forever. They just need you to believe them for five minutes—long enough to hand over your money.— Steve Rhode
Who Gets Targeted (It’s Not Who You Think)
According to BBB data, scammers target different age groups with different tactics:
What Scammers Want From You
- Ages 18-24: Personal and banking information (via Instagram, WhatsApp)
- Ages 25-54: Identity theft and fake back-tax demands
- Ages 55+: Direct payment scams (gift cards, wire transfers)
Red Flags to Watch For
- Demand for immediate payment
- Threats of arrest, lawsuits, or license suspension
- Payment requested via gift cards, wire transfers, or payment apps
- Unsolicited contact by phone, email, or text
Surprising Fact: Young adults (ages 18-24) are actually the most likely to fall victim to tax scams—not seniors. Scammers reach younger people through social media and messaging apps, where trust is higher and skepticism is lower.
The IRS Will Never Do These Things
Here’s what the IRS and BBB want you to know—the IRS will never:
- Email, text, or contact you on social media to request personal or financial information
- Demand immediate payment over the phone
- Require payment by gift card, wire transfer, or payment app
- Threaten arrest or deportation for unpaid taxes
- Ask for credit card or bank information over the phone
The IRS’s first contact with you will always be by mail. If someone contacts you any other way claiming to be the IRS or a tax company and demands immediate action—it’s a scam.
How to Protect Yourself
- File early. The sooner you file, the harder it is for someone to steal your identity by filing a fake return first.
- Get an IRS Identity Protection PIN. This six-digit number confirms your identity and prevents fraudulent filings with your Social Security number.
- Verify before responding. If a company calls about your taxes, hang up. Look up the real company’s number at BBB.org and call them directly.
- Never pay by gift card, wire transfer, or payment app. No legitimate business or government agency accepts these payment methods for tax debts.
- Report scams. File a report with the BBB Scam Tracker and the Treasury Inspector General for Tax Administration (TIGTA).
Before You Sign Anything: If you’re considering hiring any tax resolution company, run their contract through the Contract Decoder first. It’s free—and it’s your last chance to spot red flags before you commit.
If tax debt is one piece of a bigger financial puzzle, take the free Find Your Path quiz to understand all your options.
Key Takeaways
- Scammers are impersonating real tax companies like American Tax Consultants and U.S. Tax Relief to pressure victims into immediate payment
- The IRS identified $4.49 billion in tax fraud in 2025, with a $350 median loss per victim
- Young adults (18-24) are the most likely to fall victim, targeted through social media and messaging apps
- The IRS will never email, text, or demand immediate payment—first contact is always by mail
- File early, get an IRS Identity Protection PIN, and verify any company at BBB.org before responding
Frequently Asked Questions
How do I know if a call from a tax company is a scam?
If anyone calls demanding immediate payment, threatens legal action, or asks for payment by gift card or wire transfer, it’s a scam. Legitimate tax companies and the IRS don’t operate this way. Hang up, look up the real company’s number at BBB.org, and call them directly to verify.
What companies are scammers impersonating?
According to the BBB, scammers are using the names of real firms including American Tax Consultants, U.S. Tax Relief, and Tax Relief Group. The BBB has added alerts to affected business profiles, but says there are likely “a dozen more” firms being impersonated.
How do I get an IRS Identity Protection PIN?
You can request an IP PIN through the IRS website. The six-digit number is assigned annually and helps prevent someone from filing a fraudulent tax return using your Social Security number.
What should I do if I already paid a tax scammer?
Report it immediately to the Treasury Inspector General for Tax Administration, file a report with the BBB Scam Tracker, and contact your bank or payment provider to attempt a reversal. If you gave personal information, consider an identity theft report at IdentityTheft.gov.
(Sources: KOMO News / BBB, Kaplan Group / BBB Scam Tracker, FOX 9 / BBB)
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