The Evolution of Tax Scams and How to Protect Yourself

Scams targeting taxpayers are almost as old as the income tax itself. As technology has evolved, so have the tactics scammers use to impersonate the IRS, steal personal information, or trick individuals into sending money. Understanding the history of these schemes can help taxpayers recognize warning signs and stay protected, especially during busy filing seasons when people are more focused on paperwork than potential fraud. At our firm here in Green Bay, we see firsthand how easily these scams can catch someone off guard.

In the early days of federal income tax, scammers relied on mail-based schemes. Fraudsters would send letters pretending to be from the Bureau of Internal Revenue, demanding immediate payment or threatening penalties. Because communication channels were limited and verification wasn’t easy, many taxpayers simply complied out of fear. While these scams were crude compared to today’s standards, the core tactic was always the same: create urgency, impersonate authority, and pressure the victim.

As phone technology became widespread, criminals shifted toward calling unsuspecting taxpayers. Throughout the 1980s and 1990s, phone scams became common, often involving fake agents claiming back taxes were owed. Callers frequently used aggressive language, threats of arrest, and instructions to wire funds. Even today, phone scams continue because the approach still works on people who aren’t aware that the IRS does not begin contact with taxpayers through phone calls. The familiarity of hearing a “real person,” even one impersonating an IRS agent, can be disarming.

With the rise of the internet, email and phishing scams exploded. Starting in the early 2000s, scammers began sending emails made to look like official IRS notices, complete with copied logos and formatting. These emails typically linked to fake websites designed to steal Social Security numbers, bank login credentials, or credit card information. Although the IRS repeatedly warned the public that it never contacts taxpayers through email to request sensitive data, many people clicked these links before realizing something was wrong. Today, email scams are more sophisticated than ever, sometimes using compromised email accounts to trick friends, co-workers, or family members into trusting the message.

More recent scams involve text messages, social media messages, and even gift card requests. Criminals may claim that taxes are overdue, a refund is waiting, or that the individual is tied to some kind of investigation. They create panic and try to force quick decisions. For residents in areas like De Pere and Green Bay, these messages can feel particularly stressful during the busy tax preparation season, when many people are already thinking about filing deadlines and paperwork.

While scams continue to evolve, the red flags remain consistent. First, the IRS never demands immediate payment through unusual methods such as gift cards, prepaid debit cards, or wire transfers. Any demand using these methods should be treated as a scam. Second, the IRS always mails a notice before calling. A phone call claiming to be the “first warning” is a sign of fraud. Third, the agency never threatens arrest, deportation, or license revocation over the phone. Scammers use fear because it works, but the legitimate IRS follows formal procedures and respects taxpayer rights.

To avoid falling victim, taxpayers should take a few simple precautions. Always verify the source of any unexpected communication. If you receive a suspicious call, hang up and contact the IRS directly using the number on their official website. Avoid clicking links in unsolicited emails or texts, even if they look legitimate. When in doubt, check with a trusted professional. During the hectic months of tax preparation, having someone to confirm whether a notice or message is real can provide peace of mind.

Staying informed is the best defense. By understanding both the history of tax-related scams and the modern signs to watch for, Green Bay and De Pere residents can protect themselves and their families from fraud. If you ever have concerns about a notice, call, or message you receive, our office is here to help ensure you stay safe and secure.