Tax Scams Related to the One, Big, Beautiful Bill (Part 1)

llopezcpas on June 19, 2026

The One, Big, Beautiful Bill introduces new and expanded tax benefits. While these changes may help taxpayers, they can also create confusion, especially during the first filing season when they apply. Scammers often exploit uncertainty surrounding new laws.

Taxpayers should watch for the following OBBB-related scams and take steps to protect their personal and financial information.

Ghost preparers exploiting new credits

Unlicensed or unethical tax preparers may promise large refunds by aggressively or falsely claiming new OBBB credits. These preparers may:

  • Exaggerate eligibility for deductions
  • Claim credits that taxpayers do not qualify for
  • Disappear after filing, leaving the taxpayer responsible for penalties, interest, or audits

Red Flag: The preparer refuses to sign the return or provide a valid Preparer Tax Identification Number.

Tips and overtime deduction scams

Dishonest tax preparers advertise “expert” help to claim the tip and overtime deductions, charging excessive fees and inflating amounts on returns. Common tactics include:

  • Promising unusually large refunds tied to tips or overtime
  • Guaranteeing eligibility
  • Inflating or inventing deduction amounts without proper documentation

OBBB provisions require accurate reporting of qualified tips and overtime. Because early information forms may not clearly reflect these amounts, scammers can exploit the complexity to justify improper claims.

Red Flag: The preparer will not explain how amounts were calculated, or claim documentation is unnecessary.

Deduction for seniors “enrollment” scam

The new OBBB deduction for seniors does not require enrollment, advance registration, or third-party sign-up. Eligible seniors can claim the deduction when filing their tax return with the IRS.

Scammers may target seniors through unsolicited calls, texts, emails, or mailers that claim they must:

  • Enroll immediately to receive the deduction
  • Verify personal information to qualify
  • Pay a processing or application fee
  • Click a link and provide their Social Security number or bank information

Red Flag: The preparer claims you must enroll, register, or pay a fee to receive the deduction. The IRS does not require “enrollment” or payment to claim a deduction.