As tax season approaches, it is crucial to stay informed about evolving fraud schemes, especially as cybercriminals become more sophisticated each year.
The IRS Dirty Dozen: 12 Sneaky Tax Scams to Watch Out for in 2025
The IRS’s annual Dirty Dozen list highlights the most notorious schemes threatening taxpayers, businesses, and professionals like you. These scams spike during tax season but can happen anytime, often stealing money, data, or personal information. Here are some examples:
Email phishing scams: Scammers send fake emails or text messages from the Internal Revenue Service promising refunds or threatening to withhold funds, along with links that install malware to steal personal information.
Bad advice on social media: Viral posts on TikTok contain false advice, such as misusing Form W-2, which leads to penalties or data theft — stick to the IRS or professional sources.
US Tax Authority online account “help” scam: Scammers offer to create your US Tax Authority account but hide your information to file fake returns and get refunds — no third party required.
Fake charities: Bogus groups pop up during natural disasters to collect donations or data; only IRS-qualified organizations are eligible for deductions.
False fuel tax credit claims: Promoters submit ineligible Form 4136 claims for off-highway use, inflating refunds and inviting audits.
Sick and family leave credits: Fraudsters are reviving expired credits for 2020-2021 (Form 7202) for ineligible individuals, with the IRS cracking down.
Fictitious self-employment tax credit: The social buzz around the fake $32,000 COVID credit is a twisted take on limited leave credits that is under serious review.
Illegal household employment taxes: Invent fake employees from Schedule H to claim fake vacation pay and refunds.
Overpayment fraud: Create huge W-2 or 1099 tax withholding amounts using social advice, chasing large refunds that will be flagged.
Misleading settlement offers: “Mills” charge big bucks for unacceptable debt payments—check for free with the IRS OIC tool.
Phantom tax preparers: Questionable professionals don’t sign returns or PTINs, often associated with refunds — avoid blank signatures.
New client fraud and targeted phishing: Hackers pose as clients of phishing tax professionals, stealing data for fraudulent returns.
Tax Fraud in 2025 and the IRS’s Dirty Dozen
As tax season approaches, it is crucial to stay informed about evolving fraud schemes, especially as cybercriminals become more sophisticated each year.
The IRS Dirty Dozen: 12 Sneaky Tax Scams to Watch Out for in 2025
The IRS’s annual Dirty Dozen list highlights the most notorious schemes threatening taxpayers, businesses, and professionals like you. These scams spike during tax season but can happen anytime, often stealing money, data, or personal information. Here are some examples:
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