Every year, the IRS publishes a list of its “Dirty Dozen” tax scams. The list for 2025 includes scams that individuals and businesses alike may fall victim to. The best way to guard yourself and your business against these threats is to establish a relationship with a trusted tax professional.
See below to read more about this year’s Dirty Dozen.
Email Phishing Scams
This is when scammers attempt to lure unsuspecting victims with unsolicited emails or text messages designed to trick victims into providing valuable personal and financial information that can lead to identity theft.
Scam emails and text messages may appear to be from the IRS but surreptitiously load malware or ransomware to your system and files.
Bad Social Media Advice
Social media platforms are rife with inaccurate or misleading tax information, so be sure to check your sources and consult with a tax professional before taking tax advice from the web.
Taxpayers who knowingly file fraudulent returns could face significant civil and criminal penalties.
IRS Individual Online Account Help
Scam websites offer to assist taxpayers with creating an Individual Online Account at IRS.gov. This process is simple and doesn’t require assistance.
The taxpayer’s information can then be used to submit fraudulent tax returns in the victim’s name in order to collect bogus refunds.
Fake Charities
Be careful who you’re donating money to; bogus charitable organizations take advantage of their victims’ generosity only to turn around and steal their identity.
Also, keep in mind that giving money or goods can result in an income tax deduction — but only if funds go to a qualified tax-exempt organization recognized by the IRS.
False Fuel Tax Credit Claims
In 2024, the IRS reported a number of taxpayers who were misled into believing they were eligible for a fuel tax credit. Unscrupulous tax preparers and bad actors on social media have intentionally filed fraudulent credits and collected inflated refunds.
The credit is meant for off-highway business and farming use, and, therefore, isn’t a credit most taxpayers can claim.
Credits for Sick Leave and Family Leave
A specialized credit for self-employed individuals was available during the pandemic (2020 and 2021). The IRS reports repeated instances of credits claimed on income earned as an employee and not as a self-employed individual.
Bogus Self-Employment Tax Credit
Claims of a non-existent “self-employment tax credit” persistently circulate on social media, claiming many people could qualify for as much as $32,000 in credits and payments.
Though based on the sick leave and family leave credits discussed above, the credit is much more limited than fraudsters imply, with significant technical requirements.
Improper Household Employment Taxes
The IRS has identified a trend of claiming refunds based on falsified sick and family medical leave wages “paid” to non-existent household employees.
The Overstated Withholding Scam
Scam artists encourage taxpayers to falsely report income and withholding amounts from a fictional employer using Form W-2 or other 1099 forms. The taxpayer is then instructed to file a falsified return and collect a substantial refund due to the large amount of fraudulent withholding.
Misleading Offers in Compromise (OIC)
Though the OIC does exist to help taxpayers settle federal tax debts, unsavory tax preparers aggressively promote it in misleading ways to the tune of thousands of dollars in fees.
Ghost Tax Return Preparers
Taxpayers should be wary of professionals who display common warning signs, such as charging a fee based on the size of the refund or being unwilling to sign the return.
New Client Scams and Spearfishing
Tax professionals are frequently targeted by emails that purport to be from new clients but include malicious attachments or URLs to compromise their systems and access sensitive client information.
