The IRS’s Dirty Dozen: Tax Scams to Watch Out for in 2025
Tax season isn’t just about paperwork and deadlines—it’s also a time to stay vigilant against potential scams. Each year, the IRS releases its Dirty Dozen list, highlighting the most common tax-related scams.
By staying informed, you can better protect your personal information and finances. Here is a quick summary of what to watch for in 2025 and a link to more info.
Common Tax Scams:
Email & Text Scams: Fraudulent emails (phishing) and texts (smishing) impersonating the IRS or financial entities to steal personal information.
Social Media Misinformation: False tax advice circulating online, leading to potential identity theft or tax issues.
IRS Account Scams: Fraudsters posing as helpers to steal personal info and file fraudulent returns or set up IRS individual accounts.
Fake Charities: Fake charities pop up during tax season, preying on generosity and tricking you into donating money that won’t be tax-deductible.
False Fuel Tax Credit Claims: Misleading promotions encouraging ineligible taxpayers to claim fuel tax credits.
Sick & Family Leave Credit Fraud: Incorrect claims for pandemic-era credits using Form 7202, often based on misinformation.
Bogus Self-Employment Tax Credit: False claims promoted online for non-existent COVID-era self-employment credits.
Fake Household Employees: Filing false Schedule H forms to claim fraudulent tax refunds.
Overstated Withholding Scam: Encouraging false income and tax withholding reports on W-2s or 1099s to claim large refunds.
Misleading Offer in Compromise Services: Companies falsely promising tax debt relief for ineligible taxpayers.
Ghost Tax Preparers: Unethical preparers who refuse to sign returns, often charging fees based on refund amounts.
Spear Phishing Attacks on Tax Pros: Cybercriminals impersonate new clients to steal sensitive tax information.
Other Abusive Schemes: A wide variety of other abusive schemes and tax avoidance strategies, including those involving various trust, offshore, and retirement scams designed to evade taxes fraudulently.
How to protect yourself:
File early: Beat scammers to it. The earlier you file, the less time they have to submit a fraudulent return in your name.
Protect your personal information: Keep your Social Security Number, tax documents, and passwords secure.
Verify tax preparers: Only work with trusted, credentialed tax professionals.
Ignore IRS imposters: If you get a suspicious call or email, don’t respond. Report it directly to the IRS.
Tax scams are constantly evolving, but you don’t have to fall for them. Stay informed and check out the IRS’s full Dirty Dozen list for more details.
When something doesn’t seem right, take action and report it immediately. Your money and identity are worth protecting.
Need expert guidance on your taxes? Book a call with Visibility CFO & Tax Advisors to ensure your return is secure and accurate.