IRS Releases List of “Dirty Dozen” Tax Scams for 2025

Each year, the IRS releases its “Dirty Dozen,” a list of tax scams that taxpayers should be wary of.  The list highlights common scams that put people at risk of losing money, personal information, data, and more.  Here are the 12 scams that you should be aware of in 2025:

 

• Email and text scams. Criminals attempt to steal personal information by posing as legitimate IRS or state tax agency professionals through “phishing” and “smishing” scams, where they try to trick you into giving them sensitive personal and financial information.  They may offer fake refunds or attempt to scare you by saying you’re being charged with tax fraud.  Never click on any unsolicited communications that claim to be from the IRS.
• IRS Online Account setup “help.” Taxpayers are urged to be wary of scammers who try to sell or offer their help in setting up an Online Account with the IRS, because it may put you at risk of identity theft.  Taxpayers should not need assistance from a third party in setting up an account; allowing these scammers to help you gives them access to your personal information, which they can use to file a fraudulent return and claim your refund.
• False Fuel Tax Credit claims. Promoters may improperly push Fuel Tax Credit claims that most taxpayers are not even eligible for.  This particular credit is only available for off-highway business and farming use, but some promoters will convince taxpayers to falsely claim the credit to inflate their refunds, while collecting their own high fees and leaving the taxpayer at risk of penalties.
• OIC mills: Offer in Compromise (OIC) is a legitimate and valuable IRS program that may allow a taxpayer to settle a tax debt for less than the full amount owed. OIC “mills,” however, are third-party marketers who claim they can settle your bill for pennies on the dollar, while also charging excessive fees.  Taxpayers can easily obtain information about their qualification status for free from the IRS, instead of paying for the same service by working with these “mills.”
• Fake charities: During times of major disasters, scammers will create fake charities to steal money and personal information. Taxpayers are urged to remain vigilant about charitable donations.  Take your time to do your research, verify the authenticity of the charity, and be cautious about the method you use to donate.
• “Ghost” tax preparers. Every year, “ghost preparers” crop up, encouraging taxpayers to take advantage of credits and benefits that they don’t actually qualify for.  They charge a large fee and sometimes even steal the refund, then disappear, leaving the taxpayer to deal with the ramifications.  In addition to urging you to claim ineligible credits and deductions, other warning signs that your tax preparer is less than honorable include fees based on the size of your refund, refusing to sign your return, or directing your refund into their account instead of yours.  Always make sure to check the credentials of your tax preparer, because you are ultimately responsible for all of the information on your tax return.
• Bad advice on social media. Social media is full of inaccurate, misleading, and fraudulent tax advice that could potentially cause identity theft and tax problems.  It’s important to be wary of information you see online and to verify it with trusted sources, like the IRS.
• Spearfishing. Spearfishing scams are aimed at tax professionals and businesses, which are urged to be wary of suspicious email requests that can attempt to steal client data, tax software preparation credentials, and preparer identities.  The “new client” spearfishing scam is one that is particularly common; in this scheme, cybercriminals pose as new clients and when a tax preparer responds to their email, they send a malicious link or attachment that can compromise computer systems and allow them access to sensitive information.
• Incorrectly claimed Credits for Sick Leave and Family Leave. These specialized credits are only available for self-employed individuals during tax years 2020 and 2021, at the height of the COVID-19 pandemic, and not for later years.  Many taxpayers are claiming the credit, despite not being self-employed.
• False self-employment tax credits. Information continues to circulate on social media regarding the “Self-Employment Tax Credit,” and many taxpayers are being convinced to file bogus claims.  This credit does not exist and instead refers to the Credits for Sick Leave and Family Leave referenced above, which most taxpayers will not qualify for.
• Improper household employment taxes. Taxpayers are warned against devising fictional household employees and then attempting to claim a refund based on false sick and family medical leave wages that they never actually paid to said false employees.
• Overstated withholding scam. Another recent social media scam encourages people to falsify forms such as W-2s and 1099s with fake income and withholding information in hopes of getting a large refund.  Taxpayers should be aware that if the IRS cannot verify wages, income, or withholding credits, they will hold back the refund pending a review.

Contact Us

If you have questions about the information outlined above or need assistance with another tax or accounting issue, Klatzkin can help. For additional information call 609-890-9189 or click here to contact us. We look forward to speaking with you soon.