IRS Scam Text Message: How to Avoid 'Smishing'

Taxpayers should be aware of a recent "smishing" scam that could cost as much as $1,400 or lead to personal data being compromised.

Why It Matters

Scams can cost U.S. taxpayers thousands of dollars and cause financial difficulty. The incidence of scams tends to increase during the annual tax-filing season, which opened for 2024 returns on January 27.

What To Know

Scammers pretending to be from the Internal Revenue Service (IRS) have been texting taxpayers, asking them to give their personal details in exchange for Economic Impact Payments (EIP), also known as the Recovery Rebate Credit (RRC).

"Smishing" is a scam method that uses text messages to trick people into giving away sensitive information that could lead to losing money or having their identity stolen.

Smishing scams are unfortunately common, and several have been reported this tax season, with one claiming to help taxpayers claim EIP/RRC payments that could be worth up to $1,400. The IRS announced earlier this year that these were being sent to eligible taxpayers who did not claim federal stimulus checks they were entitled to as part of their 2021 tax returns.

Scammers have been sending texts to unsuspecting taxpayers. One text, seen by North Carolina news outlet WSOC-TV, shows the scammers pretending to be the IRS.

It reads: "You are eligible to receive a $1,400 Economic Impact Payment. Please provide your accurate personal information. We will deposit the amount into your bank account or mail a paper check within 1 to 2 business days."

The Better Business Bureau has reported that the messages contain "a fake link that mimics an official IRS website" and that clicking on it could lead to malware being loaded on your device or to "a fraudulent form asking for personal or financial information."

However, that is not how the payment process for EIP/RRC operates. The IRS has clarified that payments are issued automatically to eligible taxpayers, so no action is required if you've filed your 2021 tax return. Any pending EIP will be directly deposited into bank accounts or mailed as paper checks, and recipients will receive a separate letter from the IRS concerning the payment.

How To Avoid Smishing

Last month, the IRS issued advice on such smishing scams, confirming that "cyber criminals pose as the IRS and Treasury Department in smishing scams that attempt to collect personal and financial information from taxpayers."

The government agency also reminded taxpayers that "the IRS will not contact them by text message or social media and ask for personal or financial information."

"The IRS will also not initiate contact by phone or email. If the IRS needs to contact you, it'll usually first send a letter in the mail through the U.S. Postal Service."

What People Are Saying

The Better Business Bureau said in a warning issued in January: "Scammers are impersonating the IRS to trick taxpayers into sharing personal information, claiming they're eligible for a $1,400 stimulus check. These fraudulent messages often look official, but they're part of a phishing scheme designed to steal your sensitive data."

What Happens Next

If you have not yet filed a 2021 tax return, you still have until the national deadline of April 15 to file and claim the credit and any other refund you may be owed. The IRS will not accept 2021 tax returns after this date.