Tax season is stressful enough without having to worry about falling victim to the latest IRS scams. Every year, the Internal Revenue Service (IRS) releases its “Dirty Dozen,” a list of the most dangerous and deceptive tax scams targeting taxpayers, businesses, and tax professionals. For 2025, the IRS Dirty Dozen includes phishing emails, misleading tax credits, ghost preparers, new client spear phishing attacks, and more.
Understanding these threats isn’t just smart — it’s essential for protecting your money, your identity, and your peace of mind. This guide breaks down the top 12 IRS tax scams for 2025, explains how they work, and shows you how to spot the warning signs. Whether you’re filing your own tax returns, running a small business, or working with a tax professional, read on to learn how to keep your finances safe.
What Is the IRS Dirty Dozen and Why Does It Matter in 2025?
Every year, the IRS publishes the “Dirty Dozen,” a roundup of the most prevalent and dangerous tax scams threatening taxpayers and tax professionals. The 2025 IRS Dirty Dozen is more relevant than ever, as scammers use increasingly sophisticated tactics to steal money, tax refunds, and valuable personal tax information.
Though not a legal document or formal enforcement list, the IRS Dirty Dozen is a crucial educational tool. The list isn’t just a warning; it’s a roadmap to help you watch for common warning signs and avoid falling victim to scams and schemes. It highlights the need for vigilance year-round, not just during tax season.
The IRS, state tax authorities, and financial industry professionals work together to raise awareness and shield both taxpayers and tax preparers from frequent tax scams. Here are the IRS Dirty Dozen scams to watch out for in 2025:
1. Phishing Scams Targeting Taxpayers and Tax Pros
Phishing scams are at the top of the 2025 IRS Dirty Dozen list. Phishing emails and texts often pretend to be credible organizations in the tax and finance sector, including the IRS, state tax offices, and tax software providers. The goal? To trick you into revealing valuable personal tax information, which can lead to identity theft and stolen tax refunds.
There are two main types: phishing (email) and smishing (text). Scammers send unsolicited messages promising a fake tax refund or threatening legal action for tax fraud. Clicking on links in these messages can install malware or ransomware on your device, giving criminals access to your financial data.
Never forget: The IRS will not reach out to you via email, text message, or social media to ask for sensitive details.
Notably, phishing scams target taxpayers and tax professionals alike. Tax professionals are especially at risk. Spear phishing attacks target tax pros with emails appearing to come from new clients or colleagues. If the tax professional replies, the scammer may follow up with a harmful link or file, putting the preparer’s computer and client information at risk.
2. Dangerous Tax Advice on Social Media
Social media has become a breeding ground for wildly inaccurate tax advice and misleading tax credit claims. In 2025, the IRS continues to see a surge in scams fueled by incorrect tax information on social media. Fraudsters spread misinformation about new or non-existent tax credits, often encouraging users to submit fraudulent tax returns in hopes of receiving big refunds.
One example is the bogus self-employment tax credit, which scammers promote as a way for gig workers and self-employed individuals to claim large payments, even though most people do not qualify. Acting on such advice can lead to audits, penalties, or even criminal charges. Always consult a reputable tax professional before acting on tax information you see online.
3. IRS Individual Online Account Scams
Scammers are now pretending to assist taxpayers who want to create an IRS Individual Online Account. They create fake websites or offer paid services to assist with a process that is actually free using the IRS website. The real danger? These scam sites collect your personal information and use it to try to submit fraudulent tax returns in your name, stealing your refund and potentially your identity.
The real IRS Individual Online Account is a secure portal where taxpayers can view their tax records, balances, and payment history. You never need to pay anyone to create a taxpayer’s IRS Individual Online Account. If you need help, use only official IRS resources or consult a trusted tax professional.
4. Fake Charities Exploiting Taxpayers
Fake charities are a perennial feature of the IRS Dirty Dozen list. Scammers set up bogus organizations — often with names similar to legitimate charities — to trick taxpayers into making donations. These donations are not tax-deductible, and your money goes straight into the scammer’s pocket.
During tax season, fake charity scams spike as fraudsters exploit natural disasters or high-profile events. They may also steal your valuable personal tax information under the guise of processing your donation. Always verify a charity’s tax-exempt status using the IRS’s online tools before giving.
5. Bogus Self-Employment Tax Credit Claims
A growing concern in 2025 continues to involve the so-called “self-employment tax credit.” Social media and email schemes promote this non-existent credit, misleading taxpayers into filing false claims for large refunds. The IRS is seeing repeated instances of people submitting claims for this credit, even though it’s not recognized by the IRS as a standalone tax credit.
The actual credit this may be based on is called Credits for Sick Leave and Family Leave, not the “Self-Employment Tax Credit.” Most taxpayers do not qualify for this, and those who knowingly file fraudulent tax returns risk audits, penalties, and criminal prosecution. If you’re unsure about your eligibility for any tax credit and payments, consult a qualified tax professional.
6. Credits for Sick Leave and Family Leave Outdated Eligibility
During the Covid-19 pandemic years (2020 and 2021), the Credits for Sick Leave and Family Leave were legitimately available to certain self-employed individuals with Covid-related circumstances. This tax credit is no longer available this year, but the IRS still sees many incorrect claims for it. The revenue service says that taxpayers are being misled by social media misinformation and unscrupulous promoters falsely promising huge refunds.
7. Household Employment Tax Scams
Fraudulent household employment tax scams involve inventing fake household workers and submitting Schedule H (Form 1040) to falsely claim refunds for sick and family leave wages. This scam is particularly egregious because it exploits tax credits intended for legitimate employment situations.
Scammers may encourage taxpayers to submit these bogus claims, promising large refunds. The IRS is closely reviewing such claims and warns that taxpayers and tax professionals who participate in these schemes may face severe penalties. Always provide accurate and truthful information when preparing your tax returns.
8. Overstated Withholding Scams
The overstated withholding scam is a recent addition to the Dirty Dozen. Here’s how it works: Scam artists encourage people to fill out tax documents like Form W-2 or Form 1099-NEC with fabricated income and withholding amounts, often using a fictional employer. They then submit these forms electronically, hoping to trigger a large tax refund based on the inflated, fraudulent withholding.
If the IRS cannot confirm the income, wages, or withholding credits listed on your return, your tax refund will be delayed for additional review. This scam has many variations, including the use of Forms W-2G, 1099-R, 1099-DIV, 1099-OID, 1099-B, and even Schedule K-1 with withholding reported. Filing a complete and accurate tax return is the only way to avoid getting caught in this trap.
9. Misleading Offers in Compromise (OIC) Mills
The IRS’s Offer in Compromise (OIC) program allows individuals to resolve their federal tax liabilities when they are unable to pay the full amount. Unfortunately, “OIC mills” aggressively market misleading tax advice, promising to settle tax debts for pennies on the dollar, even if you don’t qualify. These operations often charge thousands of dollars for services that result in no relief.
You can check your eligibility for free using the IRS OIC Pre-Qualifier tool. If an offer sounds too good to be true, it probably is. Only work with a reputable tax professional who can provide honest guidance on resolving your tax debts.
10. Ghost Tax Return Preparers
Ghost tax preparers are unscrupulous individuals who prepare returns but refuse to sign or provide their IRS Preparer Tax Identification Number (PTIN), which is required by law. They may charge fees based on the size of your refund, promise huge tax refunds, or even disappear after filing incorrect or fraudulent returns on your behalf.
A legitimate tax return preparer will always sign your return and provide their PTIN. Be careful of anyone who won’t sign or who asks you to sign a blank return. Always use a credentialed tax professional and keep copies of your tax returns for your records.
11. New Client Scams and Spear Phishing
In 2025, the IRS is still encountering the “new client” scam, where cybercriminals use spear phishing to target tax professionals and businesses. The scammers pose as prospective clients to get tax pros to respond, then send malware-laden links or attachments that can breach the preparer’s systems and steal client data.
Businesses and tax professionals must watch for common warning signs, such as poorly written emails, unusual word choices, or requests for urgent action. Regularly update your cybersecurity protocols and train your staff to recognize these scams.
12. Fake Fuel Tax Refund and Credit Claims
Scammers often encourage people to file for fake tax refunds, and in 2025, one of the most pervasive types of false claims is for the Fuel Tax Credit. This is a real tax credit, but only few taxpayers are eligible, such as businesses purchasing aviation gasoline or running a farm.
Dishonest tax return preparers and promoters entice non-qualified taxpayers to erroneously claim this credit, then take advantage of the payer’s identity data. Another scam involves the tax return preparer inflates fees, promising windfall refunds to taxpayers.
Always ensure your eligibility before claiming a tax credit, especially if it involves Form 4136, Credit for Federal Tax Paid on Fuels. For utmost safety, check the credentials of the tax professional you’re working with.
How to Spot and Report IRS Tax Scams in 2025
The first step to protecting yourself is education. Watch for common warning signs of tax scams and schemes, including:
- Unsolicited emails, texts, or phone calls claiming to be from the IRS
- Promises of large tax refunds or credits you’ve never heard of
- Requests for payment via wire transfer, gift cards, or cryptocurrency
- Tax preparers who refuse to sign your return or provide their PTIN
- Social media posts offering “secret” tax credits or deductions.
If you suspect you’ve been targeted by a tax scam, report it immediately. The IRS urges you to report suspected abusive tax promotions or preparers to the IRS Lead Development Center. You can also report an abusive tax scheme using IRS Form 14242.
Protect Yourself from IRS Tax Scams: Contact John D’Amato Law Offices
Don’t let IRS tax scams ruin your financial future. At John D’Amato Law Offices, we’ve spent three decades helping individuals and families in Buffalo and Western New York resolve IRS tax problems and protect their assets. If you’re worried about falling victim to the 2025 IRS Dirty Dozen, need help with a tax return, or want to settle your federal tax debts the right way, we’re here to help.
You deserve personal attention and honest, experienced advice. Call us today at (716) 703-9099 for a free consultation. Let’s work together to keep your finances and your peace of mind safe from tax scams and fraudulent schemes.