Protecting Your Finances During Tax Season

By Published On: February 24, 2026Categories: Services - Tax

Between January and April, there is a sharp increase in phishing emails, identity theft attempts, and refund fraud schemes. The combination of deadlines, sensitive financial data, and heightened communication creates opportunity for criminals to exploit taxpayers.

At SDK, we want our clients to stay informed and protected. Here’s what you should be watching for, and steps you can take to reduce your risk.

Common Tax Season Scams to Watch For

Emails or Texts Claiming to Be from the IRS

One of the most common schemes involves messages that appear to come from the Internal Revenue Service demanding immediate action, payment, or personal information.

It’s important to know:

  • The IRS does not initiate contact by email, text message, or social media to request personal or financial information.
  • The IRS does not threaten immediate arrest or legal action over email.
  • The IRS does not ask for payment via gift cards, wire transfers, or cryptocurrency.

If you receive a message that creates urgency or fear, pause before responding.

Fake Tax Preparation or E-File Notifications

Fraudsters may send emails stating your tax return was rejected or that additional documentation is required. These messages often include links designed to capture login credentials.

If you ever have a question about your return status, contact our office directly rather than clicking on a link.

Refund and Direct Deposit Scams

Criminals may attempt to:

  • File a fraudulent return using stolen information.
  • Contact you posing as a tax professional requesting updated direct deposit details.
  • Divert a legitimate refund.

If you receive unexpected communication regarding your refund, verify it through a trusted source.

Steps You Can Take to Protect Yourself

  • File Early
    • Filing early reduces the window for someone else to fraudulently file a return using your information.
  • Use Strong, Unique Passwords
    • If you use online tax software, financial accounts, or cloud storage, ensure each account has a strong, unique password and enable multi-factor authentication whenever available.
  • Use Secure Document Sharing
    • We strongly encourage clients to use our secure portal for exchanging tax documents. Avoid sending Social Security numbers, bank account details, or tax forms through standard email.
  • Be Cautious with Public Wi-Fi
    • Avoid accessing financial accounts or uploading tax documents while connected to unsecured public networks.
  • Consider an Identity Protection PIN (IP PIN)
    • The Internal Revenue Service offers an Identity Protection PIN (IP PIN) program that provides an additional layer of security for your tax filings. This can be especially helpful if you have previously experienced identity theft.

Warning Signs of Tax-Related Fraud

Contact us immediately if:

  • You receive notice of a tax return you did not file.
  • You receive an IRS transcript you did not request.
  • You are notified that multiple tax returns were filed under your Social Security number.
  • You receive wage or income transcripts from employers you do not recognize.

Early detection is critical to minimizing damage.

At SDK, we take data protection seriously and maintain systems and protocols to safeguard your information. However, cybersecurity is a shared responsibility. Staying alert and cautious during tax season significantly reduces risk. If something doesn’t feel right, it probably isn’t. Reach out to our team before responding to suspicious requests.

Protecting your financial information is just as important as preparing your return accurately, and we’re here to help you do both.