The Internal Revenue Service (IRS) has released its annual “Dirty Dozen” list of tax scams for 2025, cautioning taxpayers, businesses, and tax professionals to remain vigilant against prevalent schemes that endanger their tax and financial data. These fraudulent tactics, which range from phishing email schemes to deceptive tax credits, tend to surge during the tax filing season as individuals prepare their tax returns.
The “Dirty Dozen” campaign features 12 scams and schemes that pose significant threats to taxpayers. While it is not a legal document or a formal list of enforcement priorities, this educational initiative aims to increase awareness and shield taxpayers and tax professionals from prevalent tax scams and fraudulent activities.
1. Email Phishing Scams
The IRS continues to encounter numerous email and text scams targeting taxpayers and associated parties. It’s crucial for taxpayers and tax professionals to remain vigilant against deceptive communications from entities replicating legitimate organizations within the tax and financial sectors, including the IRS, state tax agencies, and tax software companies.
2. Bad Social Media Advice
In 2025, the issue of incorrect tax information on social media remains a significant concern, as it has the potential to mislead honest taxpayers and lead to identity theft and tax complications. Many social media platforms, including TikTok, frequently share inaccurate or misleading tax advice, with some posts even encouraging the misuse of standard tax documents like Form W-2.
3. IRS Individual Online Account Help from Scammers
Swindlers can pose as a “helpful” third party and offer to help create a taxpayer’s IRS Individual Online Account at (link unavailable) In reality, no help is needed, and the agency offers tips on how to sign up and avoid scams.
4. Fake Charities
Fraudulent charities consistently present a problem, often intensifying during crises or natural disasters. These scams are set up by individuals aiming to exploit the public’s generosity. They primarily seek money and personal information, which can later be used for identity theft and other exploits against victims.
5. False Fuel Tax Credit Claims
In the past year, a significant issue arose concerning taxpayers who were misled into believing they qualified for the Fuel Tax Credit. This credit is specifically intended for off-highway business and farming use and does not apply to the majority of taxpayers.
6. Credits for Sick Leave and Family Leave
This specialized credit was made available for self-employed individuals specifically for the tax years 2020 and 2021, coinciding with the pandemic. Please note that this credit is not applicable for subsequent tax years.
7. Bogus Self-employment Tax Credit
Misinformation continues to spread on social media concerning a fictitious “Self-Employment Tax Credit,” misleading taxpayers into submitting erroneous claims. Promoters falsely advertise it as an opportunity for self-employed individuals and gig workers to receive substantial payments related to the COVID-19 pandemic period.
8. Improper Household Employment Taxes
Taxpayers “invent” fictional household employees and then file Schedule H (Form 1040), Household Employment Taxes, to claim a refund based on false sick and family medical leave wages they never paid.
9. Overstated Withholding Scam
A recent fraudulent scheme circulating on social media urges individuals to fraudulently complete Form W-2, Wage and Tax Statement, or other forms such as Form 1099-NEC and other 1099 documents, with fabricated income and withholding details.
10. Misleading Offers in Compromise
The Offers in Compromise (OIC) program is an important program that helps people settle their federal tax debts when they are unable to pay in full. But “mills” can aggressively promote Offers in Compromise in misleading ways to people who clearly don’t meet the qualifications, frequently costing taxpayers thousands of dollars.
11. Ghost Tax Return Preparers
Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund.
12. New Client Scams and Spear Phishing
In 2025, the IRS continues to observe the persistent “new client” scam, characterized by spear phishing attacks specifically targeting tax professionals. Cybercriminals masquerade as prospective clients to deceive tax professionals and other businesses into engaging with their emails.
If you have been victim to any of these or other scams or if your identity is stolen, your life can become a nightmare. Identity thieves will even file tax returns under your Social Security number claiming huge refunds and leaving you with a horrendous mess to clean up with the IRS. Don’t be a victim, contact this office for assistance.
