Every year, the IRS releases its Dirty Dozen list, exposing the biggest tax scams that put individuals, businesses, and tax professionals at risk. For 2025, these scams have become more sophisticated, targeting taxpayers through digital deception, fake tax preparers, and misleading financial schemes.
If you pay taxes (and let’s be real, that’s most of us), you need to be aware of these scams because falling victim to one could cost you your hard-earned money, your identity, or even land you in legal trouble.
Let’s break down the top 12 tax scams of 2025 and, more importantly, how you can avoid getting scammed.
1. Phishing and Smishing Attacks – The IRS Will NEVER Text or Email You
What’s Happening?
Scammers are sending fraudulent emails (phishing) and text messages (smishing) pretending to be from the IRS, banks, or other financial institutions. These messages often claim:
- Your tax refund is on hold
- Unusual activity detected on your account
- You owe money to the IRS and must pay immediately
Clicking on the links in these messages can install malware on your device or take you to a fake IRS website designed to steal your login credentials and financial information.
How to Protect Yourself:
✔ Ignore unsolicited texts and emails from the IRS or financial institutions. The IRS will never initiate contact via email, text, or social media.
✔ Go directly to the official website (irs.gov) rather than clicking on links in messages.
✔ Report phishing attempts to the IRS by forwarding suspicious emails to phishing@irs.gov.
2. The Rise of Bad Tax Advice on Social Media
What’s Happening?
Scammers (and well-meaning but misinformed people) are posting false tax loopholes, deductions, and credit claims on platforms like TikTok, Instagram, and Facebook.
Some claim you can:
- File your taxes without paying anything—legally!
- Claim bogus credits you don’t qualify for
- Manipulate tax documents to increase your refund
Following this advice could lead to audits, penalties, and even fraud charges.
How to Protect Yourself:
✔ Fact-check any tax advice before acting on it.
✔ Consult a professional tax preparer before making financial decisions based on social media.
✔ If it sounds too good to be true, it probably is.
3. Fake Charities Preying on Generosity
What’s Happening?
Scammers create fake charities after disasters, tragedies, or major world events, tricking people into donating money that never goes to a good cause.
They use:
- Fake websites that look like legitimate charities
- Emotional social media posts asking for donations
- Calls pretending to be from charitable organizations
How to Protect Yourself:
✔ Verify the charity’s legitimacy using the IRS’s Tax-Exempt Organization Search tool.
✔ Never donate via gift cards, cryptocurrency, or wire transfers—these are common scam tactics.
✔ Give directly through official websites, not random links in emails or social media posts.
4. False Fuel Tax Credit Claims
What’s Happening?
Some tax preparers are encouraging taxpayers to falsely claim the Fuel Tax Credit, even when they don’t qualify.
This credit is meant for farmers and off-highway business use (like construction equipment). Most individuals DO NOT qualify.
How to Protect Yourself:
✔ If a tax preparer offers you a suspicious refund increase, be skeptical.
✔ Review all credits and deductions before signing your tax return.
✔ The IRS is cracking down on false claims, and you could face penalties if caught.
5. Ghost Tax Preparers – The Untraceable Scam Artists
What’s Happening?
A ghost tax preparer is someone who prepares your taxes for a fee but doesn’t sign the return or provide a valid Preparer Tax Identification Number (PTIN).
These scammers:
- Charge high fees upfront and then disappear
- Make fraudulent claims to inflate your refund
- Steal your tax refund and vanish
How to Protect Yourself:
✔ Only use licensed tax professionals who sign your return and provide a PTIN.
✔ Never sign a blank tax return.
✔ Avoid preparers who base fees on the size of your refund.
6. Spear Phishing Attacks Targeting Tax Professionals
What’s Happening?
Cybercriminals are targeting accountants and tax preparers, pretending to be new clients needing help.
They send emails with malicious links or attachments, designed to steal:
- Client tax records
- Social Security numbers
- Banking information
How to Protect Yourself:
✔ Verify new clients before sharing sensitive information.
✔ Use multi-factor authentication for email and accounting software.
✔ Educate employees on identifying phishing attempts.
7. Misleading Offers in Compromise (OIC) Scams
What’s Happening?
Shady companies claim they can settle your tax debt for pennies on the dollar with the IRS’s Offer in Compromise (OIC) program—even when you don’t qualify.
They:
- Charge huge fees upfront
- Fail to actually submit your OIC
- Leave you worse off than before
How to Protect Yourself:
✔ Check if you qualify for an Offer in Compromise directly through the IRS website.
✔ Work with a licensed tax professional, not a shady tax relief company.
8. Employment Tax Credit Fraud
What’s Happening?
Scammers are pushing businesses and self-employed individuals to falsely claim employment tax credits like the Employee Retention Credit (ERC).
Filing a false claim could lead to:
- IRS audits
- Criminal charges
- Owing thousands in penalties
How to Protect Yourself:
✔ Consult a tax professional before claiming any employment tax credits.
✔ Be skeptical of tax preparers who guarantee you huge refunds.
9. Fake Payments & Repayment Scams
What’s Happening?
Scammers deposit fake tax refunds into your bank account, then call you pretending to be the IRS.
They claim:
- The IRS accidentally overpaid you
- You must return the money immediately
- You should pay using gift cards or wire transfers
How to Protect Yourself:
✔ If you receive an unexpected IRS deposit, contact the IRS directly.
✔ Never send money based on a phone call or email.
Final Thoughts: Stay Smart, Stay Safe
Tax scams are evolving, but knowledge is your best defense.
Key Takeaways:
✅ The IRS will never call, text, or email you asking for money.
✅ Always verify tax preparers and charities before trusting them.
✅ If something sounds too good to be true, it probably is.
The best way to protect yourself is to stay informed, ask questions, and work with trusted professionals.
Share this with friends and family so they don’t fall victim to these scams. Let’s keep our hard-earned money where it belongs!
