Avoid Tax Scams: IRS 2025 “Dirty Dozen”

IRS Warns Taxpayers About the 2025 “Dirty Dozen” Tax Scams

The IRS has released its annual Dirty Dozen list for 2025, warning taxpayers, businesses, and tax professionals about common tax scams that threaten financial and personal information. These schemes, which range from email phishing to fraudulent tax credit claims, tend to peak during tax season but occur year-round as fraudsters seek to steal money and data.

Originally launched in 2002 by IRS Communications Senior Adviser Terry Lemons, the Dirty Dozen campaign aims to educate taxpayers and tax professionals about emerging scams. In coordination with the Security Summit, the IRS has worked alongside state tax agencies, tax software providers, and financial institutions to combat tax-related identity theft, protecting millions of taxpayers and billions in refunds.

To address the rise of social media-driven scams, the Coalition Against Scam and Scheme Threats (CASST) was introduced last year. The 2025 Dirty Dozen list continues to highlight these evolving threats, helping taxpayers stay informed and vigilant against fraud.

The full IRS 2025 “Dirty Dozen” list includes:

1. Email phishing & smishing scams – Scammers pose as IRS or financial organizations via email (phishing) or text messages (smishing) to steal personal information and install malware.
2. Bad social media advice – Misinformation on platforms like TikTok misleads taxpayers into filing fraudulent returns, potentially leading to identity theft and penalties.
3. IRS Individual Online Account help from scammers – Fraudsters offer to help set up IRS online accounts but instead steal personal data for tax fraud.
4. Fake charities – Scammers create fraudulent charities, especially during crises, to steal money and personal information.
5. False Fuel Tax Credit claims – Misleading promotions encourage taxpayers to claim an ineligible fuel tax credit to inflate refunds.
6. Credits for Sick Leave & Family Leave –  Some taxpayers are incorrectly using Form 7202 to claim the pandemic-era self-employed tax credit, which expired after 2021.
7. Bogus self-employment tax credit– Social media falsely promotes a nonexistent “Self-Employment Tax Credit,” misleading taxpayers into filing fraudulent claims.
8. Improper household employment taxes – Fraudsters fabricate household employees to claim refunds for wages never paid.
9. The overstated withholding scam – Scammers encourage taxpayers to falsify income and withholding on W-2 or 1099 forms to receive large refunds.
10. Misleading Offers in Compromise (OIC)  – Tax debt relief “mills” mislead taxpayers into paying fees for OIC programs they don’t qualify for.
11. Ghost Tax Preparers – Unethical tax preparers refuse to sign returns or include their IRS PTIN, often charging fees based on refund size or filing false claims.
12. New client scams & spear phishing – Cybercriminals impersonate clients to target tax professionals, gaining access to sensitive data.

The IRS urges taxpayers to rely on trusted sources, avoid unsolicited messages, and verify tax claims before filing.

IRS Urges Vigilance

The Dirty Dozen is an educational campaign, not an enforcement list, aimed at protecting taxpayers. Beyond this list, the IRS warns of other abusive tax avoidance strategies, such as trusts, offshore schemes, and fraudulent retirement arrangements. The IRS encourages reporting fraud via Form 14242 and warns that filing false tax claims can lead to severe penalties. For more details on IRS tax scams and fraud prevention, visit the Dirty Dozen section on IRS.gov.

Questions?

Please contact your Warady & Davis LLP business advisor with any additional questions or concerns – (847) 267-9600 or [email protected].

Source: IRS, Dirty Dozen Tax Scams for 2025, IRS.gov.

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