‘Dirty Dozen’ tax scams: what to watch out for in 2025

March 2, 2025, 8:00 AM HST

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The IRS has released its 2025 Dirty Dozen list, warning taxpayers, businesses and tax professionals about the most common tax scams that threaten financial security. From phishing emails to misleading tax credits, these schemes peak during tax season but can occur year-round. Here’s what to avoid:

1. Phishing and Smishing Scams

Scammers send fake emails (“phishing”) or text messages (“smishing”) posing as the IRS or financial institutions. These messages often claim urgent action is needed, luring victims into clicking malicious links or revealing personal information.

The IRS will mail a letter or notice before calling or emailing. The IRS never initiates contact through email, text or social media—delete and report these messages immediately.

2. Bad Tax Advice on Social Media

False tax tips circulate widely on platforms like TikTok, encouraging fraudulent claims such as misusing tax forms to inflate refunds. Following incorrect advice can lead to audits, fine and even legal trouble.

Trust only verified sources like the IRS, professional tax advisors or other reputable sources.

3. Fake IRS Online Account Help

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Scammers pose as helpful third parties offering to set up IRS Individual Online Accounts but steal personal information instead.

Taxpayers should create these accounts themselves through IRS.gov and be cautious of unsolicited offers of assistance. The agency offers tips on how to create an online account here.

4. Fraudulent Charities

After disasters or crises, fake charities emerge to exploit donors.

Always verify an organization’s tax-exempt status through the IRS’ Tax Exempt Organization Search before making donations.

5. False Fuel Tax Credit Claims

This credit is for off-highway business and farming use only. Scammers mislead taxpayers into claiming it fraudulently, often leading to audits and penalties.

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The IRS urges people to get more information and ensure they are properly claiming this credit.

6. Improper Sick and Family Leave Credits

Credits for self-employed individuals were available for 2020 and 2021 only. Fraudulent claims using Form 7202 for later years are now being flagged by the IRS.

7. Bogus Self-Employment Tax Credit

A non-existent “Self-Employment Tax Credit” is being promoted online and on social media

In reality, the underlying credit being referred to in social media is not called the “Self-Employment Tax Credit;” it’s a much more limited and technical credit called the Credits for Sick Leave and Family Leave. Many people simply do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk.

8. Household Employment Tax Fraud

Taxpayers “invent” fictional household employees and then file Schedule H (Form 1040), Household Employment Taxes, to claim a refund based on false sick and family medical leave wages they never paid.

9. Overstated Withholding Scams

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Social media schemes encourage taxpayers to falsify income and withholding amounts on W-2s or 1099s to claim huge refunds. The IRS is actively monitoring and rejecting such fraudulent returns.

10. Misleading Offer in Compromise Mills

The Offers in Compromise program is an important program that helps people settle their federal tax debts when they are unable to pay in full. But aggressive promoters falsely claim taxpayers can settle IRS debts for pennies on the dollar, often charging hefty fees.

Use the IRS’ free Offer in Compromise Pre-Qualifier tool to determine eligibility.

11. Ghost Tax Return Preparers

These shady preparers refuse to sign tax returns, leaving taxpayers liable for fraudulent filings. Always use a reputable tax professional who provides a signed return and IRS Preparer Tax Identification Number (PTIN).

12. Spear Phishing Attacks on Tax Pros

Cybercriminals pose as new clients to trick tax professionals into opening malware-infected emails. Tax pros should verify new clients independently and avoid opening suspicious attachments.

Other Schemes

The IRS also reminds taxpayers that beyond the Dirty Dozen, there are a wide array of other abusive schemes and bogus tax avoidance strategies that can mislead well-intentioned taxpayers. These can involve different types of trusts, offshore schemes and even individual retirement arrangements. More information on past schemes is available on the special Dirty Dozen section on IRS.gov.

While the Dirty Dozen list is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers and the tax professional community about various scams and schemes.

Report Abusive Tax Schemes and Tax Return Preparers

In support of the Dirty Dozen awareness effort, the IRS also encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns.

To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242 – Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed Form 14242 and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.

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