Which Scams Do You Need to Again Watch Out For This Year? The IRS' "Dirty Dozen" of 2025

We are now in tax season. Accountants are geared up and ready to go. As in past years, tax scammers are out in full force. Every year the IRS publishes a list of its "Dirty Dozen" tax scams with information about tax scams and how to avoid them. This comprehensive list highlights the various types of tax-related scams and fraudulent schemes that individuals and tax professionals should be vigilant about, especially during tax season. Here’s a summary and some important points to keep in mind:

• Phishing and Smishing:

  • Phishing involves fraudulent emails pretending to be from the IRS or other legitimate entities. These emails may ask for personal information or try to trick individuals into clicking harmful links.

  • Smishing refers to similar scams done via text message, often with urgent or alarming language, such as fake claims about accounts being put on hold or unusual activity.

• Bad Social Media Advice:

  • Inaccurate tax advice is common on platforms like TikTok. Always cross-check tax-related information with reliable sources, such as the IRS website.

• IRS Individual Online Account Scams:

  • Scammers may offer to help create IRS accounts, but their goal is to steal personal information or file fraudulent returns in the taxpayer’s name to claim a false refund.

• Fake Charities:

  • Fraudulent charities often emerge during crises or natural disasters, tricking taxpayers into donating money that never reaches those in need.

• False Fuel Tax Credit Claims:

  • The Fuel Tax Credit is intended for specific businesses, not general taxpayers. Fraudulent tax preparers may attempt to claim this credit for individuals who do not qualify.

• Incorrect Credits for Sick Leave and Family Leave:

  • Self-employed individuals may have been eligible for sick leave credits during the pandemic, but these credits are no longer available for 2022 and beyond. Claims for these credits should be accurate to avoid penalties.

• Bogus Self-Employment Tax Credit:

  • There is no "Self-Employment Tax Credit" for the COVID-19 period. Misleading marketing on social media may encourage self-employed workers to file for nonexistent credits.

• Improper Household Employment Taxes:

  • Some taxpayers invent fake household employees to claim false tax refunds based on non-existent sick leave or family leave wages.

• Overstated Withholding Scam:

  • Scammers encourage individuals to file returns with false income and withholding figures, hoping to get an inflated refund. The IRS will catch these claims and delay the refund pending verification.

• Misleading Offers in Compromise:

  • The Offer in Compromise (OIC) program is designed to help people settle tax debts, but fraudsters may mislead individuals into applying when they do not qualify, costing them significant money.

• Ghost Tax Return Preparers:

  • Tax preparers who refuse to sign returns or include their IRS Preparer Tax Identification Number (PTIN) should be avoided. Always work with reputable, licensed professionals.

• New Client and Spear Phishing Scams:

  • Tax professionals are particularly vulnerable to spear phishing attacks, where scammers impersonate new clients to trick them into compromising their systems. These scams can lead to identity theft and fraudulent tax returns.

For the details of these tax scams, please visit: "Dirty Dozen" List of Tax Scams for 2025.   https://www.irs.gov/newsroom/dirty-dozen-tax-scams-for-2025-irs-warns-taxpayers-to-watch-out-for-dangerous-threats

Remember, always be careful because there are many different scams. Some of them are obvious while others are more difficult to detect. The IRS encourages all taxpayers be vigilant year-round, not just during the tax season.