Recognizing Phony IRS Letters: Red Flags and Verification Tips

Quick overview

Scammers send realistic-looking letters that claim to be from the IRS. Their goal is to get you to pay money, share Social Security numbers or bank details, or click malicious links. Legitimate IRS notices follow clear procedures; when a letter deviates from those norms, treat it as suspicious and verify before you act.

Background and why this matters

In recent years IRS-related scams have grown more sophisticated. Scammers copy IRS headers, use official-sounding language, and sometimes include real taxpayer information to make letters look genuine. The IRS and partner agencies regularly publish alerts about these schemes (see IRS guidance on how the IRS contacts taxpayers and tax scams) (IRS, 2025). Falling for a phony letter can lead to stolen funds, identity theft, and long, stressful recovery processes.

Source references you can trust:

• IRS: How the IRS contacts taxpayers (https://www.irs.gov/newsroom/how-the-irs-contacts-taxpayers)
• IRS: Tax scams & consumer alerts (https://www.irs.gov/newsroom/tax-scams-consumer-alerts)
• Federal Trade Commission — IdentityTheft.gov (https://www.identitytheft.gov)
• Consumer Financial Protection Bureau (https://www.consumerfinance.gov)

How fraudsters craft these letters

Fraudsters study official IRS formats and replicate elements that lend credibility: logos, notice numbers, and citations to internal revenue code. They may:

• Use a generic greeting (“Dear Taxpayer”) instead of your name.
• Include a false notice or case number that looks official.
• Demand immediate payment or threaten arrest, liens, or license revocation.
• Ask for payment via nonstandard channels like gift cards, prepaid debit cards, cryptocurrency, or wire transfer.
• Provide a phone number or web link that connects to a fake call center or phishing site.

Often, the sender mixes accurate-sounding details with clear errors (bad grammar, wrong forms, or payment instructions the IRS never uses).

Identification — clear red flags

Watch for these telltale signs that a letter may be phony:

• Generic greeting: “Dear Taxpayer” or no name at all.
• Immediate or dramatic deadlines, e.g., “pay within 24 hours.”
• Requests for unusual payment methods (gift cards, cryptocurrency, Western Union, prepaid debit cards).
• Threats of immediate arrest or deportation (the IRS does not threaten criminal action by mail without earlier notices and due process).
• Requests to verify personal information by email or an unfamiliar website.
• Poor grammar, misspellings, or odd formatting.
• Return address or phone number that doesn’t match official IRS contact information.
• Claims of large refunds that require “verification” or payment to release.

If you see one or more of these signs, don’t respond directly to the letter. Pause and verify.

Step-by-step verification tips

1. Pause and don’t pay or click.

2. Check official IRS resources first. Go to IRS.gov directly (type the address yourself) and search for keywords from the letter. Use the IRS pages noted above for how the agency contacts taxpayers.

3. Confirm your tax account. Create or sign in to your secure IRS online account to view notices, balances, and transcripts. The IRS account portal shows official actions taken on your file (see IRS online tools explained for step-by-step guidance).

4. Call the IRS using a verified number. Use the phone numbers listed at IRS.gov, not the number on the suspicious letter. General individual tax questions: 800-829-1040 (this number and others can change; confirm the correct number on IRS.gov). If you’re concerned about identity theft, the IRS Identity Protection Specialized Unit has separate guidance.

5. Compare notice codes and wording. Many legitimate IRS letters include a notice code you can cross-check with official explanations. See our guide: Decoding IRS Notice Codes for common types and meanings.

6. Report the letter. If you determine a letter is fraudulent, report it to the IRS (forward suspicious letters to phishing@irs.gov or follow reporting guidance on IRS.gov), and to the Federal Trade Commission at IdentityTheft.gov.

7. Keep records. Save the letter, write down the sender’s number and any steps you took, and note call times and names if you call anyone.

What to do if you already responded or paid

If you gave personal information:

• Immediately change passwords and secure affected accounts.
• Place fraud alerts or credit freezes with the three major credit bureaus (Equifax, Experian, TransUnion).
• File a report at IdentityTheft.gov and follow the recovery plan it generates. The FTC and the IRS provide step-by-step help for identity theft victims.

If you paid money using a gift card or wire transfer, contact your bank or card issuer at once to report the fraud and request a recall or reversal where possible. File a police report and keep all documentation.

Real-world examples (anonymized)

Case 1 — Urgent payment demand: A client received a letter demanding immediate payment for unpaid taxes and threatened arrest. The letter used a generic greeting and asked for payment via a prepaid debit card. We checked the client’s IRS account and found no balance. The letter was fraudulent. Reporting it prevented further contact and potential loss.

Case 2 — Identity verification ploy: A small business owner received an “identity verification” letter indicating a mismatch on their return and asked for account numbers to clear the issue. We contacted the IRS using their official number and learned the IRS had not sent that letter. Identifying inconsistent contact details and confirming directly with the IRS avoided handing over sensitive bank information.

Who is most at risk?

Anyone can receive a phony IRS letter, but particular groups are often targeted:

• Older adults and retirees who may be less familiar with online verification tools.
• Busy taxpayers who respond quickly to urgent demands.
• Small business owners who manage multiple accounts and may miss official notices.

The best defense is verification, not reaction.

Professional tips and best practices

• Always verify through IRS.gov. Don’t call or click numbers or links in a suspicious letter.
• Create a secure IRS online account and periodically check for notices or balance changes.
• Keep organized records of all IRS correspondence and your response history; a clear paper trail helps if you must dispute charges or report identity theft.
• Use two-factor authentication and unique passwords for financial accounts.
• If you hire a tax pro, confirm they are credentialed (EA, CPA, or attorney) and listed on directories or state boards.

For more on tools that help confirm official IRS communication and transcripts, see: IRS Online Tools Explained: Get Transcript, Where’s My Refund, and ID Verify.

Also useful: our guide to notice codes — Decoding IRS Notice Codes: A Simple Guide to Common Letter Types.

And if you’re dealing with letters about identity checks, read: IRS Identity Verification Letters: What They Ask and How to Respond.

Common mistakes and misconceptions

• Myth: “If a letter looks official, it must be real.” Reality: Scammers can replicate official elements. Always verify through independent channels.
• Mistake: Paying immediately. Never pay before confirming a balance through your IRS online account or by calling the official IRS number on IRS.gov.
• Misconception: “The IRS will call me and demand payment.” The IRS usually contacts by mail first for notices and will not demand payment by unconventional methods.

Quick reference table: common IRS-related scams

Frequently asked questions

Q: Can the IRS contact me by email?
A: The IRS rarely initiates contact by email about a bill or refund. Most official IRS contacts are by mail; emails claiming to be from the IRS are likely scams (IRS guidance).

Q: What if a letter includes my full name and part of my SSN?
A: Scammers sometimes include accurate fragments to appear legitimate. Confirm the notice through your IRS online account or the phone numbers on IRS.gov.

Q: How do I report a suspicious letter?
A: Forward phishing emails to phishing@irs.gov and mail-based scams to the IRS according to instructions at IRS.gov. File a report with the FTC at IdentityTheft.gov.

Professional disclaimer

This article is educational and does not replace personalized legal, tax, or financial advice. If you are unsure about a notice or have experienced identity theft, consult a qualified tax professional or attorney for guidance tailored to your situation.

Authoritative resources & reporting links

• IRS — How the IRS contacts taxpayers: https://www.irs.gov/newsroom/how-the-irs-contacts-taxpayers
• IRS — Tax scams & consumer alerts: https://www.irs.gov/newsroom/tax-scams-consumer-alerts
• Report phishing: phishing@irs.gov
• Federal Trade Commission / IdentityTheft.gov: https://www.identitytheft.gov
• Consumer Financial Protection Bureau: https://www.consumerfinance.gov

By following the verification steps above and using official resources, you can reduce the risk of falling for phony IRS letters and protect your identity and finances.