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Article Highlights:
Dirty Dozen
Email Phishing Scams
Bad Social Media Advice
IRS Individual Online Account Scams
Fake Charities
False Fuel Tax Credit Claims
Misused Sick Leave and Family Leave Credits
Bogus Self-Employment Tax Credit
Improper Household Employment Taxes
Overstated Withholding Scam
Misleading Offers in Compromise
Ghost Tax Return Preparers
New Client Scams and Spear Phishing
The Internal Revenue Service (IRS) has released its annual "Dirty Dozen" list of tax scams for 2025, urging taxpayers, businesses, and tax professionals to stay alert against the most common and damaging fraud tactics. These scams often intensify during tax season but can strike year-round, targeting individuals through phishing emails, false credits, and impersonation schemes in an attempt to steal personal data or refunds.
Although the "Dirty Dozen" is not a legal document or official enforcement list, it is a critical educational initiative designed to raise public awareness and prevent tax-related fraud. The IRS has promoted this campaign for over two decades, partnering with the Security Summit—a coalition of state tax agencies, software companies, and financial institutions—to protect taxpayers and reduce fraud.
1. Email Phishing and Smishing Scams
The IRS warns against fraudulent emails and texts impersonating tax authorities or financial institutions. These phishing and smishing attacks often use alarming language to pressure recipients into clicking malicious links or sharing personal data. Common tactics include fake refund offers and threats of legal action. Always avoid clicking on unsolicited communications claiming to be from the IRS.
2. Bad Tax Advice on Social Media
Social media platforms continue to circulate harmful and misleading tax advice, often promoting incorrect use of documents like Form W-2. The IRS urges taxpayers to seek guidance only from trusted sources such as licensed tax professionals and IRS.gov.
3. IRS Individual Online Account Scams
Scammers may pose as helpful agents offering to assist with setting up an IRS online account, only to steal personal information and submit false returns. The IRS provides step-by-step instructions for creating your account securely—no third-party help is needed.
4. Fake Charities
Fraudsters create fake charities—especially during disasters—to exploit taxpayers' generosity. To claim a tax deduction, donations must go to IRS-approved organizations. Verify charitable status at IRS.gov or CharityNavigator.org.
5. False Fuel Tax Credit Claims
The Fuel Tax Credit is intended for off-highway business and farming use, yet promoters often encourage ineligible individuals to claim it, inflating refunds. Misuse of this credit can lead to IRS scrutiny and penalties.
6. Misused Sick Leave and Family Leave Credits
These credits applied only to self-employed individuals for 2020 and 2021. Taxpayers are incorrectly filing Form 7202 to claim benefits they are not eligible for—particularly if income was earned as an employee.
7. Bogus Self-Employment Tax Credit
A fabricated “Self-Employment Tax Credit” has gained traction on social media, falsely promising substantial payments. This is a misleading twist on pandemic-related credits, and the IRS warns taxpayers to verify eligibility before filing.
8. Improper Household Employment Tax Claims
Some taxpayers invent fake household employees to file Schedule H (Form 1040) and claim sick leave wages they never paid, fraudulently inflating their refunds.
9. Overstated Withholding Scams
This scheme involves creating false Forms W-2 or 1099s to report fake income and withholdings, then filing returns to claim exaggerated refunds. If the IRS cannot verify the information, refunds may be delayed or denied.
10. Misleading Offers in Compromise
Unscrupulous companies may advertise IRS debt relief through Offers in Compromise (OIC), targeting people who clearly don’t qualify. Taxpayers can check eligibility using the free OIC Pre-Qualifier tool on IRS.gov.
11. Ghost Tax Return Preparers
These shady preparers refuse to sign returns or include their IRS Preparer Tax Identification Number (PTIN), leaving taxpayers vulnerable. Beware of preparers who base fees on refund size or ask you to sign blank or incomplete returns.
12. New Client Scams and Spear Phishing
Cybercriminals target tax professionals by posing as new clients and sending malware-laden attachments or phishing links. Once access is gained, fraudsters can steal sensitive client data and impersonate professionals to file false returns.
Don’t Fall Victim to Tax Fraud
Tax scams continue to evolve, but you don’t have to navigate these threats alone. The best protection is awareness and working with a trusted, experienced tax professional. If you've been targeted by any of these scams or suspect fraudulent activity, don’t wait—reach out to our office today. The team at TPSA CPAs is here to help safeguard your financial future and ensure your tax filings are accurate and secure.
📞 Contact our office to schedule an appointment and get the guidance you need this tax season.