The holiday season is a time for giving, and gift cards are a popular and convenient present. Unfortunately, it’s also a peak time for scammers looking to take advantage of the generous spirit. The IRS has issued urgent warnings about sophisticated schemes where criminals impersonate government agencies—including the IRS—to steal your money using gift cards.
Here is what you need to know to protect yourself and your loved ones from tax and financial fraud this holiday season.
The #1 Rule to Remember: The IRS Never Asks for Gift Cards
This is the most critical piece of information you can use to immediately shut down a scam:
The Internal Revenue Service (IRS) will never ask for or accept a gift card, prepaid debit card, or wire transfer as payment for a tax bill.
If anyone claiming to be from the IRS or another government agency demands payment via a gift card—whether over the phone, text, email, or social media—it is 100% a scam.
Warning Signs: Common Gift Card Scammer Tactics
Scammers are constantly changing their methods, but they rely on fear and urgency to trick victims. Be cautious of any request that involves the following:
1. Impersonation and Threats
Scammers may pose as IRS agents or other law enforcement officials. They often call or leave a threatening voicemail informing you that you are linked to criminal activity, owe a fictitious tax penalty, or face immediate arrest if you don’t pay.
2. Demands for Immediate, Specific Payment
A legitimate tax bill is always preceded by an official notice mailed to you. Scammers skip this step and demand immediate payment using an unconventional method. They may ask you to purchase gift cards from various stores to avoid suspicion, and then request the gift card number and PIN over the phone or via email.
3. Compromised Email Accounts
While many scams directly impersonate the IRS, criminals also use compromised work or personal email accounts to send urgent messages requesting gift card purchases for “friends, family, or co-workers.” If a colleague or boss suddenly emails you asking you to buy gift cards for a company event, verify the request with a phone call or in-person check.
How to Know It’s NOT the IRS Calling
A real representative from the IRS will not use the following tactics:
| A Real IRS Representative Will NEVER… |
| Demand Immediate Payment using a specific, non-traceable method like a gift card or wire transfer. |
| Demand Payment without first providing you the opportunity to question or appeal the amount you owe. |
| Threaten to Bring in Local Police or other law enforcement to have you immediately arrested for non-payment. |
| Threaten to Revoke your driver’s license, business license, or immigration status. |
Take Action: What to Do If You’re Targeted
If you receive a suspicious call, email, or text, do not engage. Hang up immediately, delete the message, and report the attempt.
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Report Tax-Related Phone Scams: Contact the Treasury Inspector General for Tax Administration (TIGTA) to report the call.
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Report to the FTC: Use the Federal Trade Commission (FTC) website to report any scam attempt.
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Forward Phishing Emails: If you receive an unsolicited email that appears to be from the IRS, forward it immediately to
phishing@irs.gov.
By staying informed and recognizing these key warning signs, you can protect your wallet and enjoy a fraud-free holiday season.