Tax season is here, and with it comes an annual warning from the Internal Revenue Service (IRS): scammers are out in full force, looking for ways to steal your money, personal data, and even your identity. The 2025 Dirty Dozen list highlights the top 12 tax scams that taxpayers, businesses, and tax professionals need to watch out for this year.
From email phishing schemes to misleading tax credits, these scams spike during tax filing season but can occur year-round. The IRS has been sharing this list for over two decades, not as a legal document but as an educational tool to help the public avoid fraud.
“Scammers are relentless, and they use the guise of tax season to try tricking taxpayers into falling into a variety of traps,” says Terry Lemons, IRS communications senior adviser.
To help keep you safe, here’s a breakdown of the top scams to avoid in 2025:
1. Email and Text Phishing Scams
Fraudsters impersonate the IRS, tax agencies, or financial institutions through emails (“phishing”) and texts (“smishing”) designed to steal your sensitive information. These messages might:
- Promise fake refunds
- Threaten legal action
- Ask you to “verify” personal details
📌 Tip: The IRS never initiates contact via email or text. If you get a suspicious message, don’t click any links—report it to the IRS instead.
2. Bad Social Media Tax Advice
Misinformation spreads quickly online, and in 2025, scammers are using TikTok and other social media platforms to push false tax strategies. Some of these schemes involve:
- Falsely claiming deductions
- Misusing tax forms like the W-2
- Filing fraudulent tax returns
📌 Tip: Always fact-check tax advice with the IRS or a licensed tax professional before taking action.
3. Scammers Offering “Help” with IRS Online Accounts
Creating an IRS Individual Online Account gives taxpayers access to important tax information, but scammers are now offering to “help” set up accounts—only to steal your identity.
📌 Tip: You don’t need a third party to set up your IRS account. Follow official IRS instructions to do it safely yourself.
4. Fake Charities Preying on Generosity
Scammers set up fake charities, especially after natural disasters or crises, to trick well-meaning taxpayers into donating.
📌 Tip: Before donating, verify a charity’s legitimacy using the IRS Tax Exempt Organization Search tool.
5. False Fuel Tax Credit Claims
The Fuel Tax Credit is only for off-highway business and farming use, yet scammers promote it as a way to inflate refunds.
📌 Tip: If someone urges you to claim this credit, be wary—it could lead to audits and penalties.
6. Misusing the Sick and Family Leave Credit
This credit was available to self-employed individuals in 2020 and 2021 during the pandemic. However, scammers continue pushing taxpayers to wrongly claim it for later years or for wages earned as an employee.
📌 Tip: Double-check credit eligibility before filing. Incorrect claims could result in hefty fines.
7. The Non-Existent “Self-Employment Tax Credit”
Social media has popularized a fake “Self-Employment Tax Credit” that supposedly offers up to $32,000. This is a misleading take on an actual credit for self-employed individuals, but most people don’t qualify.
📌 Tip: If a tax deal sounds too good to be true, it probably is.
8. Fake Household Employment Tax Claims
Some scammers invent fictional household employees and file Schedule H (Form 1040) to falsely claim tax refunds.
📌 Tip: Only claim real employment-related taxes. Fraudulent claims can lead to criminal charges.
9. The Overstated Withholding Scam
This social media-driven scheme encourages people to file fake W-2 or 1099 forms with inflated income and tax withholding—hoping for a big refund.
📌 Tip: The IRS verifies income with employers. Filing a fraudulent return could result in audits, penalties, or even criminal prosecution.
10. Misleading “Offers in Compromise” Promises
“Offer in Compromise (OIC) mills” aggressively market tax debt relief to people who don’t qualify, often charging thousands of dollars for false promises.
📌 Tip: Use the IRS Offer in Compromise Pre-Qualifier Tool for free before seeking outside help.
11. Ghost Tax Preparers
Some unethical tax preparers:
- Charge based on refund size (a huge red flag!)
- Refuse to sign your return (a violation of IRS rules)
- Ask you to sign blank or incomplete forms
📌 Tip: Only work with legitimate tax professionals who have a Preparer Tax Identification Number (PTIN) and will sign your return.
12. New Client Phishing Scams Targeting Tax Professionals
Cybercriminals pose as potential clients to trick tax pros into opening emails with malicious attachments. This can lead to data breaches and stolen identities.
📌 Tip: Tax pros should verify new clients carefully and use strong cybersecurity practices.
Beyond the Dirty Dozen: Watch for Other Tax Scams
The IRS warns that beyond these 12 scams, fraudsters also push:
- Offshore tax schemes
- Abusive trusts
- Bogus retirement plans
To stay protected, always verify tax advice, use official IRS resources, and report any suspicious activity.
How to Report Tax Scams
If you suspect a tax scam, report it to the IRS Lead Development Center by submitting Form 14242 (available here).
💡 Bottom Line: Stay informed, be skeptical of anything that seems “too good to be true,” and always follow legitimate tax advice.
🚨 Have you encountered a tax scam? Share your experience in the comments below! 👇💬
IF you need assistance with accurate, private and timely assistance in preparation for tax filing, reach out to us. Let’s chat!
Source: IRS.GOV