Each year, the IRS issues an annual "Dirty Dozen" list of tax scams.  The IRS recently published its list for 2025 to raise awareness about the most common tax scams that could threaten taxpayers, businesses, and tax professionals. The IRS notes that these scams peak during filing season but warns that the scams persist throughout the year. We share this information in the hope that it might help someone from becoming a victim.

These are the 12 tax scams and schemes that taxpayers should look out for: 

1. Phishing - Among the top threats this year are email phishing and smishing, where criminals send fraudulent messages impersonating the IRS or other financial entities to trick recipients into revealing their sensitive information. The IRS reminds taxpayers not to click any links from anyone claiming to be from the agency as it may contain malware.
2. Bad social media advice - Misleading tax advice on social media has been encouraging individuals to file fraudulent claims using Form W-2 or improperly claim credits they do not qualify for. Taxpayers must only follow trusted social media advice from the IRS and other reputable sources to prevent facing significant penalties if they file fraudulent tax returns.
3. IRS Individual Online Account help scam - Scammers trick taxpayers into sharing personal information by offering fake assistance in creating an IRS Individual Online Account. However, taxpayers do not need help to set up this account and should only follow official IRS guidance.
4. Fake charities - Fake charities are a recurring problem every year, especially during disasters. Fraudsters often exploit disasters by creating fake charities to steal donations and personal data. These scams do not just involve money, but they also pose identity theft risks. Taxpayers should always verify a charity's legitimacy before donating.
5. False Fuel Tax Credit claims - The IRS reports that taxpayers have been misled into improperly claiming the Fuel Tax Credit during the past year. However, the credit is not available to most taxpayers because it was designed for off-highway business and farming use.
6. Sick Leave and Family Leave credits - Many taxpayers have been using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to incorrectly claim a credit even though it is only available for self-employed individuals for 2020 and 2021.
7. Fake self-employment tax credit - A non-existent "Self-Employment Tax Credit" has been falsely claiming online that self-employed people and gig workers can receive payments of up to $32,000 for the COVID-19 period. This misleading information refers to the expired Sick Leave and Family Leave credits. The IRS warns that most taxpayers are not qualified for these credits and it is closely monitoring these claims.
8. Improper household employment taxes - The IRS also reports a rise in fraudulent filings involving Schedule H, in which taxpayers create fictional household employees to claim a refund based on wages they never paid.
9. Overstated withholding scam - The overstated withholding scam operates when scammers submit tax returns with exaggerated income and withholding amounts to receive large refunds. The IRS warns that such claims will be closely scrutinized, and refunds will be withheld if discrepancies are determined.
10. Misleading OIC - The Offer in Compromise program allows eligible taxpayers to settle tax debts for less than the full amount owed. However, aggressive promoters mislead ineligible taxpayers into applying, often charging thousands in fees. The IRS advises taxpayers to use its OIC Pre-Qualifier tool to verify eligibility.
11. Ghost tax return preparers - "Ghost" preparers are those who will prepare returns but refuse to sign them or include their IRS Preparer Tax Identification Number (PTIN). This is a huge red flag. Taxpayers should avoid preparers who charge a fee based on the refund amount or ask them to sign blank or incomplete returns.
12. Spear phishing scams - Tax professionals are also targeted through spear phishing scams. Criminals often use malware to infiltrate systems by posing as potential clients to gain access to sensitive tax information.

The IRS encourages individuals to report suspected scams using the online Form 14242, Report Suspected Abusive Tax Promotions or Preparers, or by mailing the form to the IRS Lead Development Center in the Office of Promoter Investigations.