State tax departments warn of rash of text and email scams

The smishing and phishing tax scams in six states also highlight the IRS' reminder that crooks try to steal our personal and financial info for tax and other purposes year-round.

Ah, technology. My smartphone is a godsend when it comes to keeping me on track. I get regular appointment previews and alerts. Various apps make my routine tasks much easier.

But it’s also a vehicle for folks trying to break into my life. Text scammers routinely send me messages trying to get me to click on a link or even just reply.

And now it seems that September apparently is state tax scam month.

Six state tax departments recently issued alerts about texting smishers and their email phishing counterparts.

Ed Zollars has details on the half dozen tax scam schemes where the con artists have been impersonating state tax departments. Zollars’ Current Federal Tax Developments report also includes action that anyone who gets any of the scam messages should take.

Below, in alphabetical order, are highlights of the state tax departments’ warnings.

Michigan: Scammers are sending urgent, unsolicited text messages that appear to be from the Michigan Department of Treasury. The message falsely claims a refund has been processed and threatens forfeiture if the taxpayer does not submit accurate payment information.

Minnesota: A fake text message purporting to be from the Minnesota Department of Revenue asks the targeted individuals to update their banking information.

New Jersey: Scammers are sending unsolicited text messages and emails claiming to be from the Garden State’s Division of Taxation. The texts are often urgent in nature and ask recipients to verify banking information or pay a tax due through a provided link. New Jersey officials also warn of phone scams where callers impersonate tax officials and demand immediate payment, sometimes threatening police action.

North Dakota: Residents are getting fraudulent text messages that appear to come from the North Dakota Department of Revenue. The smishing messages ask for sensitive and confidential information, such as bank or credit card details via links.

Texas: In August and September, Lone Star State residents got fraudulent texts claiming to be from the Texas Comptroller of Public Accounts and/or the Texas Franchise Tax Board. I got the fake Franchise Tax Board one.

Both schemes here in Texas included malicious links designed to steal personal and banking information. Texans also have been the target of various email phishing attempts, including some targeting Historically Underutilized Business (HUB) members, also urging them to update records via malicious links.

Virginia: Scammers, claiming to be from a Virginia revenue agency, send text messages saying that the recipient will permanently lose a tax refund they click a link to provide payment information

IRS tax security reminders: The state warnings cited by Zollars dovetail nicely with the Internal Revenue Service’s recap today of its 2025 Summer Security Summit series.

The annual campaign — this year’s theme was Protect Your Clients; Protect Yourself — is designed for tax professionals, but it’s worth a read by us individual taxpayers, too.

Of particular note is the surge of misinformation on social media promoting the misuse of credits such as the Fuel Tax Credit and the Sick and Family Leave Credit. This can lead taxpayers to file inaccurate returns and result in a denial of refunds and or penalties.

The lesson from both federal and state officials is the same. Tax crooks and scammers don’t every take a break, so we potential targets need to remain vigilant year-round, too.

You also might find these items of interest:

• How to report tax scams and fraud
• Social media tax scammers have cost duped taxpayers $162 million in IRS penalties
• ID theft protection tips in wake of whistleblower's report on DOGE Social Security data collection