IRS Warns Taxpayers About Fake Tax Calculators Promising Bigger Refunds The Internal Revenue Service is cautioning taxpayers about online tools that falsely promise large refunds, urging individuals to use only official, trusted resources for tax calculations. The warning comes as the IRS continues processing tax returns and issuing refunds, with significant increases in average refunds compared to the same period last year. The IRS highlighted that scammers are exploiting the complexity of the tax code by creating fake calculators that claim to guarantee unusually large refunds. These tools often mislead users by suggesting eligibility for new tax credits or deductions under the One Big Beautiful Bill Act, which introduced several changes to tax laws. The agency emphasized that no legitimate calculator can guarantee a refund amount, as tax outcomes depend on accurate and complete information provided by taxpayers. As of March 27, the IRS had processed 88.4 million individual tax returns, a slight decline of 1.3% compared to the same period in 2025. Despite this, the agency issued over 62.9 million refunds, with an average refund of $3,521—a 11.1% increase from the same time last year. The total refunds issued reached $221.697 billion, up 13.6% from the previous year. However, the IRS noted that many taxpayers do not qualify for the new deductions and are not receiving the full benefits of the updated tax law. The warning against fake calculators was prompted by complaints received earlier in the year about dubious online tools that falsely promised inflated refunds. These scams often mimic legitimate tax software or government websites, using misspelled URLs like "irsgov.com" or "irs-gov.org" to trick users into entering sensitive information.#irs #one_big_beautiful_bill_act #tax_withholding_estimator #sales_tax_deduction_calculator #phishingirsgov
Common Tax Mistakes That Cost Taxpayers More Money During Filing Season Tax season is inherently stressful, but avoidable errors can transform a routine filing into a costly ordeal. With Tax Day just 10 days away, even minor mistakes can lead to delays, IRS notices, or unexpected penalties. Here are five common filing missteps to avoid and how to prevent them. Choosing the Wrong Filing Status Your filing status is a critical determinant of your tax rate, standard deduction, and eligibility for credits. Selecting the incorrect status can result in overpayment, a smaller refund, or delays if the IRS flags the return for review. Confusion often arises from life changes such as marriage, divorce, having a child, or supporting an aging parent. For example, claiming "head of household" incorrectly can lead to penalties if the taxpayer does not meet the strict criteria, such as paying more than half the cost of maintaining a home and having a qualifying dependent. The IRS provides an online tool to help taxpayers determine their status, and many tax software programs offer guidance through interactive questionnaires. Leaving Credits on the Table Failing to claim all eligible credits or deductions is one of the most expensive mistakes taxpayers can make. This can reduce refunds or increase tax bills. Bill Sweeney, senior vice president of government affairs at AARP, emphasized that many taxpayers overlook available deductions due to a lack of awareness or reliance on last year’s return. Recent changes to the tax code, including provisions from the One Big Beautiful Bill Act, mean that strategies from previous years may no longer apply. Sweeney urged taxpayers to conduct a fresh review of their financial situation to identify potential savings.#aarp #irs #one_big_beautiful_bill_act #mike_faulkender #bill_sweeney
