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Common tax scams

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Disclaimer

MetaMask doesn’t provide tax advice. This article represents our stance on IRS guidance received to date, which may continue to evolve and change. None of this should be considered as advice or an individualized recommendation, but it’s important to us that our users have relevant information available to them in the most accessible way possible. Please consult a tax professional regarding your own tax circumstances.

Are requests for tax payments or gas fees to release funds a scam?

Yes, requests for prepayment of taxes or gas fees to release funds are almost always a scam. Here’s why:

  1. Legitimate platforms don’t require upfront payments – Exchanges, wallets, and financial institutions never ask for gas fees or taxes before allowing you to withdraw funds.
  2. Gas fees are deducted automatically – When making a crypto transaction, gas fees are paid directly from your wallet at the time of the transaction. You never need to send them separately to a third party.
  3. Taxes are handled through proper channels – In most countries, crypto taxes are reported and paid through government tax agencies, not through random individuals or platforms demanding upfront payments.
  4. Common scam tactics – Scammers often claim you must pay a “release fee,” “unlock fee,” or “verification tax” to access your funds. These are fake fees meant to trick you into sending money.

What should I do if someone asks me to pay to unlock my wallet?

If someone is asking you to pay to unlock your MetaMask wallet, this is a scam. MetaMask will never request any payments, including taxes or fees, to unlock wallets or access funds.

If you get a request like this, here’s what you should do:

  1. Do NOT send any money – This is a common scam tactic.
  2. Never share your Secret Recovery Phrase – No legitimate support representative will ever ask for it.
  3. Report the scam – You can report phishing scams to MetaMask support by clicking the conversation button in the bottom right corner of this page.
  4. Secure your wallet – If you’ve already shared any sensitive information, immediately transfer your funds to a new wallet with a fresh Secret Recovery Phrase.
  5. Check for malware – Scammers often trick users into downloading fake MetaMask extensions or apps. Ensure you are using the official MetaMask site and extension.

If you’re locked out of your wallet, the only way to regain access is with your Secret Recovery Phrase. If you need further help, see this guide for more instructions.

How to protect yourself

Here are some more tips to help you protect yourself from tax scams:

  1. Verify the source – If someone asks for fees or taxes upfront, it’s likely a scam. Check with your local tax office for legitimacy.
  2. Never send crypto to unknown addresses – Once sent, crypto transactions are irreversible.
  3. Report suspicious activity – If someone contacts you unexpectedly, pressures you to pay, and discourages you from seeking advice, it’s a red flag. Report the situation to the relevant authorities for assistance.
Disclaimer

MetaMask does not provide tax advice and this article should not be viewed as such. For questions relating to your specific situation we strongly recommend speaking with a tax professional.