Did you receive a text from the IRS saying you qualify for a $1,400 check? Watch out for this scam

People in the U.S. are being warned to watch out for an SMS scam that seeks to dupe them into believing they are signing up to receive a check from the federal tax office.

What’s this SMS scam all about?

Better Business Bureau, a U.S. consumer advice organization, has warned that fraudsters are sending out text messages that claim to be from the Internal Revenue Service (IRS), as part of a phishing scheme that aims to trick people into sharing their personal information with the con artists.

The scam relates to the IRS’s December announcement that the agency is issuing automatic payments to taxpayers who were eligible for a stimulus check of up to $1,400 in 2021, but didn’t claim it in their federal tax return filed that year.

What’s the IRS payment that’s at the heart of the scam?

Paid out as part of the American Rescue Plan, a $1.9tn covid-19 relief package signed by former president Joe Biden in early 2021, the stimulus checks were at the time paid out automatically to eligible taxpayers who had filed a federal return the previous year.

Officially known as Economic Impact Payments, the stimulus checks could also be claimed if you hadn’t filed a return in 2020, by applying for what’s known as a Recovery Rebate Credit in your following federal tax filing.

At the end of last year, the IRS said it had identified around one million taxpayers who were eligible for the stimulus check, but didn’t fill out the Recovery Rebate Credit form in their 2021 tax returns. In a statement, the agency said it would begin issuing the payments to such Americans, either by direct deposit or paper check.

Taxpayers who haven’t filed a 2021 tax return may also be eligible for the stimulus payment, the IRS added. “They face an April 15, 2025, deadline to file their returns to claim the credit,” the agency said.

How does the $1,400 stimulus check scam work?

As explained by Better Business Bureau, scammers are sending out SMS texts that impersonate the IRS and claim that the recipient is eligible for a $1,400 stimulus check.

The person receiving the text is asked to click on a link that leads them to a fake IRS website, where they are instructed to fill out their personal information in order to be able to receive the stimulus payment.

Do not be fooled by this. The IRS has said that the checks will be paid out without the need for their recipients to take any action. What’s more, the agency says it is notifying beneficiaries of their payment by letter, not SMS.

IRS tools to sidestep tax scams

To help taxpayers avoid falling foul of tax scams, the IRS website offers a page with tips on how to recognize a fraudulent message. The body has also provided a breakdown of the ways it will and won’t get in touch with you.

As is outlined on this page, the IRS offers several ways to report a tax scam.

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