News & Updates

These schemes can involve text message scams, e-mail schemes and phone scams. This tax season, the IRS also warns people to watch out for signs of potential unemployment fraud.

"With filing season underway, this is a prime period for identity thieves to hit people with realistic-looking emails and texts about their tax returns and refunds," said IRS Commissioner Chuck Rettig. "Watching out for these common scams can keep people from becoming victims of identity theft and protect their sensitive personal information that can be used to file tax returns and steal refunds."

The IRS, state tax agencies and the nation's tax industry – working together in the Security Summit initiative – have taken numerous steps since 2015 to protect taxpayers, businesses and the tax system from identity thieves. Summit partners continue to warn people to watch out for common scams and schemes this tax season.

Text message scams

Last year, there was an uptick in text messages that impersonated the IRS. These scams are sent to taxpayers' smartphones and have referenced COVID-19 and/or "stimulus payments." These messages often contain bogus links claiming to be IRS websites or other online tools. Other than IRS Secure Access, the IRS does not use text messages to discuss personal tax issues, such as those involving bills or refunds. The IRS also will not send taxpayers messages via social media platforms.

If a taxpayer receives an unsolicited SMS/text that appears to be from either the IRS or a program closely linked to the IRS, the taxpayer should take a screenshot of the text message and include the screenshot in an email to phishing@irs.gov with the following information:

• Date/time/time zone they received the text message
• Phone number that received the text message

The IRS reminds everyone NOT to click links or open attachments in unsolicited, suspicious or unexpected text messages – whether from the IRS, state tax agencies or others in the tax community.

Unemployment fraud

As a new tax season begins, the IRS reminds workers to watch out for claims of unemployment or other benefit payments for which they never applied. States have experienced a surge in fraudulent unemployment claims filed by organized crime rings using stolen identities. Criminals are using these stolen identities to fraudulently collect benefits.

Because unemployment benefits are taxable income, states issue Form 1099-G, Certain Government Payments, to recipients and to the IRS to report the amount of taxable compensation received and any withholding. Any worker receiving a fraudulent or inaccurate 1099-G should report it to the issuing state agency and request a corrected Form 1099-G.

For details on how to report fraud to state workforce agencies, how to obtain a corrected Form 1099-G, how to find a list of state contacts and other steps to take related to unemployment fraud, taxpayers can visit the U.S. Department of Labor's DOL.gov/fraud page.

Individuals may be victims of unemployment identity theft if they received:

• Mail from a government agency about an unemployment claim or payment for which they did not file. This includes unexpected payments or debit cards and could be from any state.
• An IRS Form 1099-G reflecting unemployment benefits they weren't expecting or didn't receive. Box 1 on this form may show unemployment benefits they did not receive or an amount that exceeds their records for benefits they did receive. The form itself may be from a state in which they did not file for benefits.

A notice from their employer indicating the employer received a request for information about an unemployment claim.

Email phishing scams

The IRS does not initiate contact with taxpayers by email to request personal or financial information. The IRS initiates most contacts through regular mail delivered by the United States Postal Service.

If a taxpayer receives an unsolicited email that appears to be from either the IRS or a program closely linked to the IRS that is fraudulent, report it by sending it as an attachment to phishing@irs.gov. The Report Phishing and Online Scams page at IRS.gov provides complete details.

There are special circumstances when the IRS will call or come to a home or business. These visits include times when a taxpayer has an overdue tax bill, a delinquent tax return or a delinquent employment tax payment. The IRS may also visit if it needs to tour a business as part of a civil investigation (such as an audit or collection case) or during a criminal investigation. The IRS provides specific guidance on how to know it's really the IRS knocking on your door.

Phone scams

The IRS does not leave pre-recorded, urgent or threatening messages. In many variations of the phone scam, victims are told if they do not call back, a warrant will be issued for their arrest. Other verbal threats include law-enforcement agency intervention, deportation or revocation of licenses.

Criminals can fake or "spoof" caller ID numbers to appear to be anywhere in the country, including from an IRS office. This prevents taxpayers from being able to verify the true call number. Fraudsters also have spoofed local sheriff's offices, state departments of motor vehicles, federal agencies and others to convince taxpayers the call is legitimate.

The IRS (and its authorized private collection agencies) will never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS does not use these methods for tax payments.
• Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
• Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
• Ask for credit or debit card numbers over the phone.

Generally, the IRS will first mail a bill to any taxpayer who owes taxes. All tax payments should only be made payable to the U.S. Treasury and checks should never be made payable to third parties.

For anyone who doesn't owe taxes and has no reason to think they do:

• Do not give out any information. Hang up immediately.
• Contact the Treasury Inspector General for Tax Administration to report the call at IRS Impersonation Scam Reporting.
• Report the caller ID and/or callback number to the IRS by sending it to phishing@irs.gov (Subject: IRS Phone Scam).
• Report it to the Federal Trade Commission on FTC.gov. Add "IRS Telephone Scam" in the notes.

For anyone who owes tax or thinks they do:

• View tax account information online at IRS.gov to see the actual amount owed. Taxpayers can also review their payment options.
• Call the number on the billing notice or
• Call the IRS at 800-829-1040. IRS employees can help.

Help for victims of ID theft

Unfortunately, scams and schemes can often lead to identity theft. While identity theft can have many consequences, the IRS focuses on tax-related identity theft.

Tax-related identity theft occurs when someone uses an individual's stolen Social Security number (SSN) to file a tax return claiming a fraudulent refund. Taxpayers may be unaware of this activity until they e-file a tax return and discover that a return has already been filed using their SSN. Or, the IRS may send them a letter saying it has identified a suspicious return using their SSN.

If a taxpayer learns their SSN has been compromised, or they know or suspect they are a victim of tax-related identity theft, the IRS recommends these additional steps:

• Individuals should respond immediately to any IRS notice; call the number provided.
• Taxpayers should complete IRS Form 14039, Identity Theft Affidavit PDF, if an e-file tax return rejects because of a duplicate filing under their SSN or they are instructed to do so by the IRS. Individuals can use a fillable form at IRS.gov, then print and attach the form to their paper return and mail according to instructions.
• Victims of tax-related identity theft should continue to pay their taxes and file their tax return, even if they must do so by paper.
• Taxpayers who previously contacted the IRS about tax-related identity theft and did not have a resolution should call for specialized assistance at 800-908-4490.

More information is available at: IRS.gov/identitytheft or the Federal Trade Commission's IdentityTheft.gov.

The official IRS website is IRS.gov. People should be aware of imitation websites ending in .com. This applies to other IRS tools, too, like Free File – they all end in .gov.

For more information, visit Tax Scams and Consumer Alerts on IRS.gov. Additional information about tax scams is available on IRS social media sites, including YouTube videos.

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This updated FAQ includes a revision to the information on tracing payments under Topic F: Finding the First and Second Economic Impact Payment Amounts to Calculate the 2020 Recovery Rebate Credit:

• Question 8, Topic F: updated

These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.

More information about reliance is available.

More information on the Recovery Rebate Credit is available on IRS.gov.

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This updated FAQ modifies a question and adds a new question (FS-2022-07 PDF):

• Question 4, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return
• Question 10, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return

These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.

More information about reliance is available.

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Don't file before ready

While taxpayers should not file late, they also should not file prematurely. People who file before they receive all the proper tax reporting documents risk making a mistake that may lead to processing delays.

Typically, year-end forms start arriving by mail – or are available online – in January. Taxpayers should review them carefully. If any of the information shown is inaccurate or not available, taxpayers should contact the payer right away for a correction or to ensure they have their current mailing or email address.

New this year, the IRS sent Letter 6419, Advance Child Tax Credit Reconciliation, in January 2022 to help individuals reconcile and receive the full amount of their 2021 Child Tax Credit. This letter includes the total amount of the 2021 advance Child Tax Credit payments issued and the number of qualifying children used to calculate their advance payments. People need this important information to accurately claim the other half of the 2021 Child Tax Credit when filing their 2021 tax return and prevent delays in processing. The IRS reminds people to check this information carefully.

Most eligible people were already issued their third Economic Impact Payment and won't include any information about it when they file. However, people who didn't qualify for a third payment or did not receive the full amount may be eligible for the 2021 Recovery Rebate Credit based on their 2021 tax situation. They will need the total amount of their third Economic Impact Payment to file an accurate tax return to avoid a processing delay. Taxpayers can sign into their IRS Online Account to view the total amount of the third-round Economic Impact Payment or wait to receive IRS Letter 6475.

Individuals not required to file must file a tax return to claim important tax credits

The IRS strongly encourages individuals who are not required to file a tax return to file one this season to claim potentially thousands of dollars in tax credits. By filing a tax return, individuals could claim:

• The Recovery Rebate Credit to receive any remaining 2021 stimulus payments that they might not have received (for example, if they added a new child or other dependent in 2021);
• The remaining Child Tax Credit for which they are eligible, including any monthly payments that they might not have received (for example, if they added a new qualifying child in 2021); and
• The Earned Income Tax Credit, the federal government's largest refundable tax credit for low- to moderate-income families (the amount of which has been nearly tripled for filers without children).

View IRS account information online

Individuals can use their IRS Online Account to securely access information about their federal tax account, including payments, tax records and more.

To help with filing a return, individuals can view:

• The total amounts of Economic Impact Payments issued for tax year 2021
• The total amount of advance Child Tax Credit payments
• Their adjusted gross income from their last tax return
• The total of any estimated tax payments they made, and refunds applied as a credit

They can also now make and track payments and manage communication preferences, including the option to go paperless and request email notifications for certain notices available online. Taxpayers are encouraged to register for an online account, if they haven't already, or sign in to access this information and explore these new features.

Important 2021 tax documents

Organized tax records make preparing a complete and accurate tax return easier and may help taxpayers find overlooked deductions or credits.

Taxpayers should wait to file until they have all their supporting income statements including but not limited to:

• Forms W-2 from employer(s)
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends and distributions from a pension, annuity or retirement plan
• Form 1099-K, 1099-Misc, W-2 or other income statement if they worked in the gig economy
• Form 1099-INT if they received interest payments
• Other income documents and records reporting virtual or crypto currency transactions
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance Premium Tax Credits for Marketplace coverage
• Letter 6419, 2021 Total advance Child Tax Credit Payments to reconcile advance Child Tax Credit payments
• Letter 6475, 2021 Economic Impact Payment, to determine eligibility to claim the Recovery Rebate Credit

Free help

Once taxpayers have collected all their tax documents and information, they're ready to consider how they will file.

IRS Free File is a great option for eligible taxpayers who are only filing a tax return to reconcile 2021 advance payments and claim the remaining portion of their Child Tax Credit or to claim the 2021 Recovery Rebate Credit, either because they didn't receive a third-round Economic Impact Payment or did not receive the full amount. IRS Free File can also be used to claim the Earned Income Tax Credit, which provides a refundable tax credit based on a filer's income and family size.

IRS Free File is available to any person or family who earned $73,000 or less in 2021. This year, there are eight IRS Free File products in English and one in Spanish.

Taxpayers can use a "look up" tool to choose from one of the Free File Providers. Each provider sets its own eligibility standards, generally based on income, age and state residency giving taxpayers who earned $73,000 or less at least one product to use for free.

Free File is just one way the IRS provides free tax preparation options to taxpayers through a partnership model. The IRS also partners with community organizations to train IRS-certified volunteers to prepare and electronically file basic income tax returns for qualified individuals for free.

Qualified taxpayers who generally make $58,000 or less, persons with disabilities and limited English-speaking taxpayers who need help preparing their own tax returns can get free tax help at one of thousands of community volunteer sites through the Volunteer Income Tax Assistance (VITA) program.

And the Tax Counseling for the Elderly (TCE) program offered by AARP, offers free tax help for all taxpayers, particularly those who are 60 and older, specializing in questions about pensions and retirement-related issues unique to seniors.

Members of the military and qualifying veterans can use MilTax, a Department of Defense program that generally offers free online tax preparation and e-filing software for federal returns and up to three state returns.

New alternative media preference to help taxpayers

Beginning January 31, 2022, taxpayers can complete Form 9000, Alternative Media Preference PDF, to choose to receive their IRS tax notices in Braille, large print, audio or electronic formats. This includes notices about additional taxes or penalties owed. Taxpayers can include the completed form with their tax return, mail it as a standalone form to the IRS or call 800-829-1040 to elect their preferred format.

As a reminder, Forms 1040 and 1040-SR are available in Spanish, and Schedule LEP, Request for Change in Language Preference, allows taxpayers to request information in 20 different languages besides English.

E-file and choose direct deposit

The IRS encourages taxpayers to file electronically and use direct deposit to get their refunds. Combining e-file with direct deposit is the safest and fastest way to receive a refund. Taxpayers can file electronically through a tax professional, IRS Free File or commercial tax preparation software. When choosing e-file and direct deposit, most people receive their refunds in less than 21 days.

People who don't have a bank account can visit the FDIC website or use the National Credit Union Administration's Credit Union Locator Tool to find an institution that allows them to open an account online and for tips on how to choose the right account. Veterans can check out the Veterans Benefits Banking Program for access to financial services at participating banks. Taxpayers can also ask their preparer if they offer other electronic refund options.

Although most refunds are delivered in 21 days, it could take longer if the tax return includes errors, is incomplete or requires further security review. Paper-filed tax returns and paper refund checks will take even longer this year.

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The American Rescue Plan Act (ARPA) of 2021 expanded the Child Tax Credit (CTC) for tax year 2021 only. These Child Tax Credit FAQs focus on information helpful to taxpayers preparing their tax year 2021 tax returns.

Recipients of advance Child Tax Credit payments will need to compare the amount of payments received during 2021 with the amount of the Child Tax Credit that can be claimed on their 2021 tax return.

Those that received less than the amount they are eligible for can claim a credit for the remaining amount. Those that received more than they are eligible for may need to repay some or all of the excess amount.

The IRS has sent Letter 6419 in January 2022 to provide the total amount of advance Child Tax Credit payments that were received in 2021. The IRS urges taxpayers receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.

These FAQs contain the following topics:

• Topic A: 2021 Child Tax Credit Basics
• Topic B: Eligibility Rules for Claiming the 2021 Child Tax Credit on a 2021 Tax Return
• Topic C: Reconciling Advance Child Tax Credit Payments and Claiming the 2021 Child Tax Credit on Your 2021 Tax Return
• Topic D: Claiming the 2021 Child Tax Credit If You Don't Normally File a Tax Return
• Topic E: Commonly Asked Immigration-Related Questions

More information about reliance is available.

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