Stay Alert: IRS Highlights Top Tax Scams for 2025
Let’s clear the air: scammers aren’t slowing their pace.
They’re becoming more savvy, faster, and alarmingly adept at impersonating trusted figures—especially now that AI technology can mimic voices, emails, and even your tax professional’s communication style.
The IRS is aware of these developments. To combat this, they release an annual list spotlighting the most perilous cons that affect ordinary taxpayers.
This list is known as the Dirty Dozen, serving as your annual heads-up.
This article outlines the scams to watch for in 2025 and offers tips to ensure you and your loved ones stay safe.
Why Everyone Needs to Pay Attention (Even If You Think You’re Immune)
You may think, It can't happen to me.
Statistics prove otherwise.
Tax scams are evolving rapidly and many are now designed to slip past your instincts. They don’t just trick you— they play you. AI makes scams more believable. Technology makes them harder to trace. Importantly, the IRS will never reach out via call, email, or text as an initial contact.
So yes—this article is intended for you, your family, and anyone else who could be vulnerable.
2025’s Top Tax Scams (The Dirty Dozen)
1. AI-Generated Phishing Emails and Texts
The unsettling trend this year?
Using AI, scammers are crafting emails and messages that look identical to those from the IRS, tax software, or even your accountant.
These messages include official logos, personal details, clickable “portals,” and enough urgency to prompt rash decisions.
What to do:Never click links in unsolicited IRS communications. The IRS does not initiate contact by email or text. Visit IRS.gov or consult your tax advisor directly.
2. False “Refund Help” Ads on Social Media
While browsing Instagram, you might see an ad proclaiming:
“Secure your $10K refund—even if you haven’t filed taxes!”
If it seems too good to be true, it likely is.
These so-called "services" file fraudulent returns using your information, resulting in you eventually owing the IRS plus associated penalties.
Work only with licensed, verified tax pros. If your refund seems abnormally large, ask for details.
3. Fraudulent Offer in Compromise Solicitations
An Offer in Compromise is a legitimate way the IRS helps taxpayers settle significant tax debts they can't fully pay.
But fraudulent entities exploit this by falsely promising debt forgiveness and charging upfront fees, only to disappear afterward.
What to do:If you owe the IRS, consult a tax specialist who understands your situation in detail—not a generic call center.
4. Fake Charities
When tragedy strikes and news spreads, emails, texts, or GoFundMe campaigns from "charities" often appear.
Some are genuine, while others are skillfully faked.
What to do:Verify a charity’s status using the IRS Tax-Exempt Org Search. Authentic charities will never insist on donations in gift cards or cryptocurrency.
5. Employee Retention Credit Scams
In 2025, scammers are still touting fake ERC benefits, catching unsuspecting business owners.
These third-party "ERC mills" submit false claims in your name. While you may temporarily gain money, the IRS demands it back with interest.
What to do:If someone promises eligibility without assessing your financial records, it’s best to steer clear.
6. Spear Phishing Attacks on Tax Professionals
This scheme targets tax pros directly.
Fraudsters use counterfeit IRS emails to access entire client files.
A single click can lead to full exposure of client data.
What to do:
Ask your tax preparer about their security measures. You’re entitled to know how your information is safeguarded.
7. Dubious Tax Advice on Social Media Platforms
“Avoid taxes entirely—just create an LLC and claim deductions for everything.”
That’s not advice; it’s a trap.
It’s steering younger taxpayers towards audits and potential penalties.
What to do:Verify your information sources. Just because someone has a platform doesn’t mean they understand tax regulations.
8. Ghost Tax Preparers
These "professionals" complete your return but refuse to sign it.
Why? Their practices are illegal. They artificially inflate figures, inflate credits, and disappear when IRS scrutiny comes.
What to do:Ensure your tax preparer signs the return and provides their PTIN (Preparer Tax Identification Number). Otherwise, look elsewhere.
9. Fraudulent “IRS Agent” Calls
This tactic persists, but it’s now automated and even harsher.
Scammers threaten imprisonment, asset seizures, or “immediate legal action” unless paid with gift cards.
What to do:End the call. Report it to TIGTA. Remember: the IRS neither calls unexpectedly nor demands payment in this form.
10. Fraudulent Tax Benefit Claims
Scammers falsely promote deductions, credits, and loopholes, particularly around energy credits and educational expenses.
If it sounds fabricated, it likely is.
What to do:Claim expenses you can support with documentation. If your tax advisor suggests complex strategies, ask questions.
11. Social Security Number Spoofing
Fraudsters use stolen or guessed SSNs to file fake tax returns before the victim submits theirs.
Victims usually find out when their legitimate return is rejected as a duplicate.
What to do:File as soon as possible. Consider obtaining an Identity Protection PIN (IP PIN) from the IRS. Use multi-factor authentication for your tax software.
12. Fake Fuel Tax Credit Claims
This credit is reserved solely for off-highway business use (for example, by farmers, not commuters). Yet scammers continue to tout it as a “hidden refund.”
What to do:If someone claims, “The IRS owes you for gas,” it’s a scam. Do not sign or agree to anything unclear or doubtful.
Final Thoughts: Be Aware. Be Cautious. Be Informed.
Living in fear isn't necessary, but staying informed is.
Here’s the silver lining: secrecy is scammers’ ally. The more people you share this information with, the tougher it becomes for scammers to succeed.
Protect Yourself and Your Loved Ones:Distribute this article to someone potentially vulnerable, such as older family members.
Enable multi-factor authentication for all financial accounts.
Inquire with your tax advisor about their identity verification and data protection practices.
Report any suspicious activity to the IRS and andFTC.gov.
When uncertain, always pause and confirm before engaging in transactions, sharing information, or clicking on links.
Seeking a Professional Perspective on Your Tax Strategy?
Our firm specializes in reviewing, filing, and safeguarding against tax scams—because navigating the tax landscape is our expertise, not yours.
Let’s discuss strategies before the next phishing attempt.
Contact our office to schedule a strategy session.
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