IRS Dirty Dozen Tax Scams 2025: How to Stay Safe
Let’s get clear on one thing:
Scammers aren't relenting; in fact, they’re getting stealthier, quicker, and alarmingly adept at mirroring individuals you trust—especially now when AI is capable of replicating voices, emails, and even the communication style of your tax professional.
The IRS acknowledges this issue, which is why they annually release a list detailing the most insidious scams preying on ordinary taxpayers.
This list is known as the Dirty Dozen—and it should be your annual must-read alert.
Here’s what to remain vigilant about in 2025—and how to safeguard yourself and those close to you.
Why Everyone's Vulnerable to These Scams
You might assume, This can’t happen to me.
But don't be fooled.
Scams are rapidly advancing, often strategically designed to bypass your instincts. They don’t just deceive—you fall victim. AI enhances the deception while technology complicates tracing the source. Remember, the IRS will never call, email, or text as a first point of contact.
So, yes—reading this article is critical not just for you, but your family too, including anyone who might use “123456” as a password.
The 2025 Dirty Dozen: Top Tax Scams
1. AI-Generated Phishing Communications
The eeriest trend of the year?
Scammers exploit AI to fabricate ultra-convincing emails and texts that mirror the IRS, your tax software, or even your accounting professional.
These communications include official logos, personal data, and clickable "portals" accompanied by an urgent call to action.
Action:
Never click on unsolicited IRS messages. The IRS does not send emails or texts to start conversations. Always use IRS.gov directly or consult your tax pro.
2. Fraudulent "Refund Help" Ads on Social Media
Picture this: scrolling through Instagram and seeing an ad promising:
“Receive a $10K refund—even without filing taxes!”
Unbelievable? Precisely.
These fly-by-night "services" use your info to file fake returns. You might initially receive funds, but later the IRS retrieves them, penalizing you in the process.
Action:
Only hire licensed, verified tax professionals. If your refund seems excessive, investigate further.
3. Offer in Compromise Scams
An Offer in Compromise is a legitimate IRS tool aiding taxpayers in significant debt to negotiate a reduced sum.
Nevertheless, unscrupulous entities exploit it by promising guaranteed forgiveness, demanding prepayments, then disappearing.
Action:
If you're indebted to the IRS, discuss your situation with a tax professional familiar with your financial circumstances, not a random call center accessing debt lists.
4. Fake Charity Appeals
After catastrophes, criminals create “charities” soliciting donations via email, text, or platforms like GoFundMe.
While some are genuine, others are cleverly counterfeit.
Action:
Research charities using the IRS's Tax-Exempt Org Search. Genuine charities do not request gift cards or cryptocurrency donations.
5. Employee Retention Credit (ERC) Scams
ERC scams are persisting into 2025, with malefactors promoting spurious ERC claims, hurting many business proprietors.
These deceitful "ERC Mills" submit bogus claims on your behalf. You receive the funds, only to have the IRS reclaim them along with added interest.
Action:
If someone assures your eligibility without examining your records, that’s a red flag to opt out.
6. Spear Phishing Targeting Tax Pros
This scam aims at tax professionals using fake IRS correspondence to gain entry to their entire client database.
One wrong click and your data are exposed.
Action:
Query your tax preparer about the security measures they employ to protect your data.
7. Misleading Tax Advice on Social Media
"Skip taxes—form an LLC and deduct everything."
This isn't advice; it's a trap.
Following such advice leads numerous young taxpayers to audits and penalties.
Action:
Check your sources. Possessing a platform doesn't equate to knowledge of tax laws.
8. Ghost Tax Preparers
These are preparers who handle your return without signing it.
Why? Because their activities are unlawful. They doctor numbers, inflate incentives, and vanish when the IRS investigates.
Action:
Ensure your preparer signs the form and provides a PTIN (Preparer Tax Identification Number). Without it, find a verified professional.
9. Fraudulent "IRS Agent" Calls
This scam continues, now enhanced with automation and intimidation.
The perpetrators threaten jail or asset confiscation unless paid—often in gift cards, an immediate red flag.
Action:
Disregard such calls. Report them to TIGTA. The IRS does not demand urgent payments or contact individuals without prior mail correspondence.
10. Bogus Tax Benefits Claims
Scammers claim fake deductions, credits, and loopholes to bolster refunds, especially tied to energy credits and educational expenses.
Action:
Only claim documented deductions. If your tax advisor suggests unconventional approaches, demand clarification.
11. Social Security Number Scams
Fraudsters use stolen or fabricating SSNs to submit deceitful returns before real taxpayers file.
Victims often discover the issue upon return rejection labeled as "duplicate."
Action:
File early. Consider acquiring an Identity Protection PIN (IP PIN) from the IRS. Utilize multi-factor authentication across your tax platforms.
12. Fictitious Fuel Tax Credit Claims
This credit is restricted to off-road business activities (e.g., agriculture, not commuters). Yet scammers peddle it as a "covert refund."
Action:
If advised "The IRS owes you gas refunds," regard it as a scam. Never endorse documents you fail to comprehend.
Conclusion: Stay Vigilant and Informed
There’s no need for paranoia, but staying informed is vital.
Scammers thrive on ignorance; the less secrecy, the harder their task. By sharing this knowledge, you weaken their schemes.
Protect Your Loved Ones:
Share this knowledge with someone susceptible, like elderly parents.
Enable multi-factor authentication on all financial platforms.
Consult your tax advisor on their ID verification processes and safeguards.
Report dubious actions to the IRS and andFTC.gov.
In uncertain situations, always pause and verify before acting on requests for information or payment.
Need Assistance with Your Returns?
We offer reviews, filings, and scam protection—this is our expertise.
Before the next scam email arrives, let’s discuss safeguarding strategies.
Contact us to arrange a strategic consultation.
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