Avoid the Top Tax Scams of 2025: Stay Safe This Tax Season

Introduction:

Tax season is here, and unfortunately, so are the scammers. Every year, the IRS releases its Dirty Dozen list, highlighting the most prevalent tax scams targeting taxpayers, businesses, and even tax professionals. These schemes are designed to steal personal information, money, and sensitive tax data, leaving victims vulnerable to identity theft and financial loss.

In 2025, the Dirty Dozen includes both familiar scams and new twists on old cons. Here’s what you need to know to protect yourself and avoid becoming a victim.

1. Email and Text Phishing Scams

Phishing scams remain a top threat. Fraudsters impersonate the IRS, state tax agencies, or tax software companies, sending fake emails or texts to trick you into sharing personal or financial information. These scams often:

• Promise a fake refund or threaten legal action for unpaid taxes.

• Use urgent language to scare recipients into clicking malicious links.

• Direct victims to fraudulent websites designed to steal login credentials.

What to do: Never click on unsolicited links or download attachments. The IRS will never contact you via email or text about your taxes. If you receive a suspicious message, report it to [email protected].

2. Bad Social Media Advice

Social media is a hotbed for misinformation, and tax scams are no exception. Fraudsters post misleading advice, urging people to misuse tax forms like the W-2 or claim credits they don’t qualify for. These schemes often involve:

• Encouraging taxpayers to file false claims for refunds.

• Promoting non-existent loopholes to reduce tax liability.

• Advising people to manipulate tax documents.

What to do: Only trust advice from verified sources like the IRS, tax professionals, or reputable organizations. If a tax strategy sounds too good to be true, it probably is.

3. Fake Help with IRS Online Accounts

Scammers are now offering to “help” taxpayers set up their IRS Individual Online Accounts. In reality, they’re stealing your information to file fraudulent returns and claim refunds in your name. Warning signs include:

• Requests for personal details like Social Security numbers and bank accounts.

• Emails or messages claiming to be from an IRS representative.

• Offers to expedite the process for a fee.

What to do: Create your IRS account yourself using the official IRS.gov website. You don’t need third-party help.

4. Fake Charities

Bogus charities pop up during crises or natural disasters, preying on your generosity. They claim donations are tax-deductible, but they’re not recognized by the IRS. Fraudulent charities:

• Pressure donors into making immediate contributions.

• Use names similar to legitimate organizations.

• Refuse to provide documentation for tax deductions.

What to do: Verify charities using the IRS’s Tax-Exempt Organization Search Tool before donating. Never provide payment information over the phone.

5. False Fuel Tax Credit

The Fuel Tax Credit is real—but only for specific business and farming uses. Scammers are convincing taxpayers to claim this credit illegally, leading to penalties and audits. These scams:

• Encourage individuals who don’t qualify to claim the credit.

• Falsify fuel expenses to increase refund amounts.

• Target taxpayers with promises of “easy money.”

What to do: Only claim credits you’re eligible for. Consult a tax professional if you’re unsure.

6. Misuse of Sick Leave and Family Leave Credits

This scam involves falsely claiming credits for sick and family leave, which were only available to self-employed individuals during the pandemic (2020-2021). Scammers may:

• Mislead taxpayers into thinking they still qualify.

• File fraudulent claims on behalf of taxpayers without their knowledge.

• Charge fees for submitting falsified credit claims.

What to do: Don’t fall for social media posts promoting this credit. It’s no longer available for most taxpayers.

7. Bogus Self-Employment Tax Credit

Another social media-driven scam, this one promotes a fake “Self-Employment Tax Credit” promising huge refunds. In reality, the credit doesn’t exist. Signs of this scam include:

• Influencers or “experts” making exaggerated refund claims.

• Ads or posts urging self-employed individuals to file special forms.

• Fake tax preparers offering to maximize refunds for a cut of the money.

What to do: Be skeptical of claims offering large refunds or credits you’ve never heard of.

8. Improper Household Employment Taxes

Scammers are convincing taxpayers to invent fake household employees and claim refunds for wages never paid. This scheme often involves:

• Creating fake W-2s for household workers who don’t exist.

• Filing fraudulent tax returns with inflated income and deductions.

• Encouraging people to “hack” the system for higher refunds.

What to do: Only claim legitimate expenses. Falsifying information can lead to severe penalties.

9. Overstated Withholding Scam

This scheme involves inflating income and withholding amounts on tax forms to claim large refunds. The IRS will flag these returns, delaying refunds and triggering audits. Warning signs include:

• Advice to claim excessive withholding on W-4 forms.

• Promises of large refunds without proper documentation.

• Preparers who charge high fees based on refund amounts.

What to do: Always report accurate income and withholding information.

10. Misleading Offers in Compromise (OIC)

The OIC program helps taxpayers settle tax debts they can’t pay in full. However, some promoters aggressively push this option to people who don’t qualify, charging hefty fees. These scammers:

• Advertise “pennies on the dollar” tax debt relief.

• Fail to disclose eligibility requirements.

• Charge upfront fees without delivering results.

What to do: Use the IRS’s free OIC Pre-Qualifier Tool to check your eligibility.

11. Ghost Tax Preparers

Ghost preparers prepare returns but refuse to sign them or include their Preparer Tax Identification Number (PTIN). They often charge fees based on the refund amount and disappear after filing. Signs of a ghost preparer include:

• Promises of inflated refunds without explanation.

• Encouragement to lie about income or deductions.

• Lack of credentials or refusal to provide identification.

What to do: Always work with a licensed tax professional who signs your return and provides their PTIN.

12. New Client Scams and Spear Phishing

Tax professionals are increasingly targeted by scammers posing as new clients. These fraudsters send malicious links or attachments to steal sensitive client data. This scam typically involves:

• Fake inquiries from “potential clients” via email.

• Malicious attachments disguised as tax documents.

• Requests for login credentials or financial information.

What to do: Tax pros should verify new clients and avoid clicking on suspicious links or downloading attachments.

Final Thoughts

Tax scams are evolving, but so are the tools to fight them. By staying informed and vigilant, you can protect yourself from becoming a victim. If you’re unsure about a tax-related issue, don’t hesitate to seek help from a trusted professional.

At Choice Accounting Partners, we’re here to help you navigate tax season safely. Book a consultation with our experts today and ensure your taxes are filed accurately and securely.

Click here to book your tax consultation

Happy filing! 🎉