Though, unfortunately, the world we live in is laden with scammers looking to take advantage of vulnerable people, knowing how to stay vigilant is the best possible thing you can do. While scammers seem to get smarter and more advanced with each passing week, so can we, and knowing how to stay ahead of those looking to exploit you can keep you safe. The IRS is warning the American people of a series of scams known as “the dirty dozen.” Aimed toward the average taxpayer, businesses and even those considered to be tax professionals, no one is truly immune from the tricks lurking out there. Here, take a look at the 12 “dirty dozen” tax scams the IRS is warning people to look out for in 2025.
Phishing scams via email or text
When it comes to scams, phishing is one of the most common across the board, as well as smishing, which looks similar, except it’s over text. When tax season rolls around, these scammers will phish by sending phony emails posing as legitimate organizations such as the IRS or a trustworthy tax filing company, and through text with suspicious messages making worrisome claims about unusual activity and things along those lines. If presented with one of these, be sure not to click any links.
Don’t listen to everything you see on social media
In this day and age, many take to social media to share false tax information that can cause confusion and incorrect tax filing. This can lead to trouble down the line for the everyday taxpayer who sees a tip on social media thinking it might make their life a little easier, only to learn that it isn’t accurate.
Don’t accept a scammer’s help with your IRS Individual Online Account
The IRS Individual Online Account is very simple to set up, but scammers out there will pose as tax professionals offering to lend a hand in doing so, gaining access to your personal financial information.
Try not to fall for any fake charities
Scammers create fake charities that take advantage of generous people looking to lend a hand to those in need, but in addition to their personal information being at risk, some might think they could claim a deduction on their tax return for it, but that’s only the case with IRS-recognized organizations.
Know the truth about Fuel Tax Credit claims
According to the IRS’s official website, a large number of people over the last year filed for the Fuel Tax Credit, intended for off-highway business and farming use, guided by dishonest preparers and people once again, sharing misinformation on social media.
Sick Leave and Family Leave credits
As stated on the IRS site, “This specialized credit is available for self-employed individuals for 2020 and 2021 during the pandemic; the credit is not available for later tax years.” Regardless, many have incorrectly claimed a credit for this despite not being self-employed.
Don’t fall for claims about self-employment tax credits
Another piece of false information that ties back to social media, many have been led to believe that there is a Self-Employment Tax Credit.
No bogus household employment taxes
In the past, taxpayers have created false employees working in their house, filed Household Employment taxes and then proceeded to claim a refund from fake sick and family medical leave wages.
Overstated withholding scam
In this instance, scammers encourage people to come up with large income and withholding amounts in the hopes of getting a hefty refund.
Check your eligibility for the Offer in Compromise
Though the Offers in Compromise program exists to lend aid to those who can’t pay their taxes in full, some people are misled to believe that they are eligible, and in the end, it costs taxpayers big time.
Look out for sketchy tax return preparers
Tax preparers are helpful, but keep an eye out for shady behavior, including those who charge more based on the amount of your refund and those who won’t sign your tax return.
Tax pros: Look out for ‘new client’ scams
Some scammers will pose as new clients looking to work with a tax preparer, then proceed to send malicious links and attachments that compromise their system.
Whether you’re the everyday taxpayer or a tax professional, it’s important to be aware of the scams that are out there. For more information, visit the IRS website here.
