Tax experts warn that recurring claims about federal stimulus payments are completely false and designed to steal personal information
A fake alert claiming the IRS is issuing $1,390 relief payments through direct deposit has resurfaced online, prompting warnings from tax professionals and federal authorities. The recurring scam appears periodically, exploiting economic uncertainty and terminology from past government assistance programs to deceive taxpayers.
No relief payments are being distributed by direct deposit or check for the remainder of 2025, and none are planned for 2026. The persistent rumors about stimulus checks remain completely false despite their widespread circulation across social media platforms and suspicious websites.
Last stimulus deadline has passed
The IRS posted warnings on social media this summer regarding stimulus check scams, explicitly stating that the Recovery Rebate Credit has expired. This credit represented the final round of government-sponsored Economic Impact Payments issued during 2021.
The deadline to claim those stimulus checks passed on April 15, 2025. Approximately 1 million checks were distributed to taxpayers who had not previously claimed the payments. No additional federal stimulus programs currently exist beyond that expired deadline.
The IRS maintains a comprehensive list of common scams and tax fraud schemes that taxpayers regularly encounter. Checking this official resource helps individuals distinguish between legitimate communications and fraudulent schemes.
Legitimate relief sometimes appears suspicious
Even authentic government assistance can seem dubious to recipients unfamiliar with distribution methods. Crystal Stranger, senior tax director at Optic Tax in Boulder, noted that the last pandemic stimulus checks created confusion for some taxpayers.
Recipients without bank accounts on file for direct deposit received payments as gift cards that genuinely resembled scam materials. This unfortunate presentation made it difficult for some people to distinguish between real government assistance and fraudulent schemes targeting vulnerable individuals.
Economic uncertainty fuels misinformation
Michael Cohn, online editor in chief of Accounting Today in New York, has documented these false rumors repeatedly throughout his career covering tax-related issues. He notes that tax myths and scams proliferate regularly, particularly around filing deadlines, though they can spread during any part of the year through social media.
Tax rebates and stimulus checks remain perennial sources of speculation, especially during periods of economic uncertainty when people feel financial stress. Scammers exploit this vulnerability by crafting convincing messages that promise quick relief to struggling households.
Cohn recommends anyone doubting such potential payments should consult the IRS official website for current information about available tax breaks, credits and application deadlines. Official government sources provide accurate details that cut through the noise of viral misinformation.
Red flags indicate fraudulent schemes
The IRS typically doesn’t initiate contact with taxpayers through phone calls. Email and text messages are only used when taxpayers have granted prior permission, with most official communication handled through traditional mail service.
Government-issued payments never charge processing fees, yet many scams attempt collecting such fees from victims. This requirement immediately identifies fraudulent schemes attempting to steal money rather than distribute assistance.
James Creech, a principal with the specialty tax advisory at Baker Tilly in San Francisco, focuses on theft losses resulting from these scams. He emphasizes that scam artists have grown increasingly sophisticated and aggressive in their tactics.
Scammers exploit desperation
During periods of inflation or economic uncertainty, promises of quick $1,200 or $2,500 payments can sound impossible to ignore, particularly when presented with artificial urgency. However, clicking fraudulent links and entering banking information provides scammers with everything they need to steal money rather than send assistance.
Creech emphasizes that the IRS will never request bank account information through unsolicited texts, emails or websites to claim payments. Any communication making such requests should be immediately reported and deleted without engagement.
Proposed programs remain unenacted
Several relief programs have been discussed publicly but none has been implemented. 1. The DOGE dividend involved talk of $5,000 checks from government efficiency savings, but no dividends materialized despite the Department of Government Efficiency identifying approximately $214 billion in potential savings. 2. The American Worker Rebate legislation from Senator Josh Hawley of Missouri intended sending at least $600 to each household member, but remains stalled in the Senate Finance Committee. 3. Tariff revenue rebates of $1,000 to $2,000 from tariff earnings were proposed but face Supreme Court challenges and government disputes.
These proposed programs sometimes get confused with actual assistance, creating additional opportunities for scammers to exploit public confusion about which programs exist versus which remain hypothetical.
State programs offer limited relief
Without federal relief payments available, individuals should check their state department of revenue or taxation for potential assistance programs. New York state initiated a refund program this year for taxpayers who paid increased sales taxes due to inflation.
Residents who filed New York state income tax returns in 2023 qualified for one-time checks distributed at the end of September. Even legitimate state programs like this one face scam versions, with the New York Department of Taxation and Finance displaying website warnings about fraudulent schemes.
Other states including California, Colorado, Florida, Georgia and New Jersey have implemented or considered various relief payment forms for residents. Checking official state government websites provides accurate information about what assistance actually exists in your location.
#IRS Warning: Watch out for stimulus check scams. The Recovery Rebate Credit has expired. Monitor for more. pic.twitter.com/jWrSziffDk
— IRS Tax Pros (@IRStaxpros) August 15, 2025
Story credit: yahoo