Each tax season, scammers become more active, attempting to exploit taxpayers and tax professionals alike. The Internal Revenue Service (IRS) has released its annual "Dirty Dozen" list, highlighting the most prevalent tax scams to watch out for in 2025.
1. Phishing and Smishing Scams
Scammers send fraudulent emails (phishing) or text messages (smishing) impersonating the IRS or other financial institutions to steal your personal information. These messages often promise refunds or threaten penalties to trick you into revealing sensitive data.
2. IRS Dirty Dozen Tax Scams: Bad Social Media Tax Advice
Misinformation on platforms like TikTok can lead you to make erroneous tax decisions. Always verify tax advice with reputable sources or consult a trusted tax professional.
3. Fake IRS Online Account Assistance
Be cautious of unsolicited offers to help set up your IRS online account. Scammers aim to steal your personal information. Set up your account only through the official IRS website.
4. IRS Dirty Dozen Tax Scams: Fake Charities
Fraudsters create fake charities, especially after disasters, to steal donations and personal data. Always verify a charity's legitimacy before donating.
5. False Fuel Tax Credit Claims
The Fuel Tax Credit is intended for off-highway business and farming use. Be wary of promoters encouraging you to claim this credit improperly.
6. Misleading Offers in Compromise
Some companies mislead taxpayers about settling tax debts for "pennies on the dollar." Use the IRS's Offer in Compromise Pre-Qualifier tool to check eligibility.
7. IRS Dirty Dozen Tax Scams: Ghost Tax Return Preparers
Avoid tax preparers who refuse to sign your return or provide a Preparer Tax Identification Number (PTIN). These "ghost" preparers may charge fees based on your refund size and disappear after filing.
8. New Client Scams and Spear Phishing
Cybercriminals impersonate potential clients to trick tax professionals into sharing sensitive information. Be cautious with unsolicited emails or links.
9. Falsified W-2 and 1099 Forms
Scammers encourage taxpayers to file fake W-2 or 1099 forms with made-up income and withholding amounts to claim fraudulent refunds. If it sounds too good to be true, it is.
10. IRS Dirty Dozen Tax Scams: Inventing Household Employees
Fraudsters push a scheme where taxpayers claim non-existent household employees to file a Schedule H and get tax credits they’re not entitled to.
11. Fraudulent Employee Retention Credit Claims
The IRS is still seeing misleading promotions encouraging businesses to claim the Employee Retention Credit (ERC) when they don’t qualify—this can lead to audits and hefty penalties.
12. IRS Dirty Dozen Tax Scams: Cyber Scams Targeting Tax Pros
Hackers are targeting tax professionals through phishing emails and malware-laden links, trying to gain access to client data. Always verify emails before clicking and keep cybersecurity tight.
Protect Yourself—We’re Here to Help
Stay vigilant and skeptical of unsolicited communications. Verify information through official IRS channels or consult a trusted tax professional. For more details, visit the IRS's official page on tax scams.
At Tax Problem Solver, we know how overwhelming tax scams and IRS issues can be. We’re here to help. If you're dealing with a tax problem—or just want to make sure you’re protected from fraud—reach out to us today. We’ll make sure you have the right guidance to navigate the tax system safely.
You can reach us by one of the contact methods below in the blue box, or email me at Larry@TaxProblemSolver.com and we can review your specific issues and solve them. You can also click here to book a free consultation.