Security, Scams & IRS Red Flags

Security, Scams & IRS Red Flags — How to Protect Yourself When Filing Your 2026 Tax Return

Tax season brings a flood of scams, identity theft attempts, phishing messages, and refund fraud.
At the same time, the IRS uses automated systems to flag inconsistencies, errors, and suspicious filings.
This guide shows you how to protect your identity, avoid scams, and understand the most common IRS red flags so you can file confidently and safely in 2026.

📑 Table of Contents

1) The Most Common Tax Scams (2026)
2) Identity Theft & IP PIN Protection
3) IRS Red Flags That Trigger Notices or Audits
4) Missing or Incorrect Forms
5) Red Flags for Credits (CTC, EITC, AOTC)
6) Red Flags for Self-Employed Filers
7) Security Checklist for Safe Filing
8) Top 3 Google FAQs

1) The Most Common Tax Scams (2026)

Scammers grow more sophisticated every year — especially during tax season.

✔ The IRS will NEVER:

Call you demanding immediate payment
Ask for gift cards
Request your bank information via email or text
Threaten police or immigration action

✔ The most common scams include:

Fake IRS phone calls
Phishing emails (“Your refund is on hold”)
Fake tax preparers stealing refunds
Identity theft refund fraud
Social media “advice” encouraging fraudulent credits

💡 Example — Refund phishing
A fake IRS email tells you “verify your refund.”
The IRS never emails refund verification links.

2) Identity Theft & IP PIN Protection

Tax-related identity theft is when someone files a return using your name and SSN to claim your refund.

✔ Warning signs include:

IRS says “a return has already been filed in your name”
You receive a refund you didn’t expect
You receive an ID verification letter

✔ IP PIN (Identity Protection PIN)

A 6-digit annual PIN that prevents anyone else from filing a return under your SSN.

Must be renewed each year
Required on every tax return you file
Without it, IRS will reject the return

💡 Tip — If your data was ever breached
Get an IP PIN immediately. It is the strongest protection available.

3) IRS Red Flags That Trigger Notices or Audits

Most returns are processed automatically — but certain issues increase the chance of IRS review.

✔ Common red flags

Incorrect SSNs or name mismatches
Unreported 1099 income
Excessively high deductions
Large charitable contributions without documentation
Claiming ineligible dependents
Mismatched 1095-A (Marketplace insurance)

💡 Example
Reporting zero income from a business that received multiple 1099-NEC forms guarantees an IRS letter.

4) Missing or Incorrect Forms

Missing forms cause more delays than any other filing error.

✔ High-impact forms the IRS checks automatically:

W-2
1099-NEC
1099-K
1099-B
1095-A
1099-INT / DIV

If a form doesn’t match IRS records, your refund will be frozen.

5) Red Flags for Credits (CTC, EITC, AOTC)

Refundable credits cause the largest number of IRS audits — especially with dependents.

✔ Red flags include:

Claiming a dependent who files their own return
Claiming a dependent who doesn’t live with you
Incorrect school records for AOTC
Overstated childcare expenses

💡 Example — Dependent conflict
If two people claim the same child, the IRS will freeze both returns until documentation is provided.

6) Red Flags for Self-Employed Filers

Schedule C businesses are examined more closely because income and expenses vary widely.

✔ Red flags include:

Very high expenses compared to income
No business mileage records
Large home office deduction without documentation
Not reporting 1099-K or 1099-NEC income
Cash-only income with no books

💡 Tip — Keep digital records
Bank statements + receipts + mileage logs are your best protection against IRS questions.

7) Security Checklist for Safe Filing

✔ Protect your identity

Use an IP PIN if possible
Never send tax documents through unencrypted email
Enable 2-factor authentication for all financial accounts

✔ Keep digital hygiene strong

Update passwords regularly
Use secure Wi-Fi when filing
Beware of pop-ups claiming to be IRS

✔ Avoid tax scams

IRS will not email refund requests
IRS will not demand gift card payments
Do NOT trust “too good to be true” credit advice online

💡 Tip
After filing, download a full PDF of your return and store it in an encrypted drive.

8) Top 3 Google FAQs (2026)

❓ FAQ 1 — “Does the IRS text me about my refund?”
No — the IRS never sends refund text messages.

❓ FAQ 2 — “Do I need an IP PIN to file?”
No, but it provides the strongest protection against identity theft.

❓ FAQ 3 — “Do high deductions trigger audits?”
Not automatically — but large deductions require documentation and can trigger review if they are unusual for your income level.

Reference Links

📚 Self-Filing Tax Series (2026)

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