Protecting Yourself from Fraudulent Schemes

The IRS annually releases its “Dirty Dozen” list to alert taxpayers, businesses, and tax professionals about prevalent scams. Staying informed is crucial to safeguarding your financial and personal information.

Core Message: Vigilance and Awareness

1. Year-Round Threat: Scammers operate continuously, not just during tax season.
2. Sophisticated Tactics: Fraudsters use increasingly complex methods to deceive victims.
3. Financial and Security Risks: These scams can result in significant financial losses and identity theft.

The 2025 Dirty Dozen List: Detailed Breakdown

Here’s a comprehensive look at the 12 most common tax scams to avoid:

1. Phishing & Smishing Scams

1. Description: Fraudulent emails and text messages impersonating the IRS or financial institutions.
2. Goal: To steal personal data or lead victims to malicious links.
3. Prevention: The IRS never initiates contact via email or text. Never click on unexpected tax-related messages.

2. Misleading Social Media Tax Advice

1. Description: Misinformation spread on platforms like TikTok, promoting fraudulent tax strategies.
2. Goal: To trick taxpayers into filing false claims for unwarranted refunds.
3. Prevention: Rely on official IRS guidance or qualified tax professionals.

3. Fraudulent IRS Online Account Assistance

1. Description: Scammers pose as third parties offering to set up IRS online accounts.
2. Goal: To steal sensitive financial information for identity theft and fraudulent filings.
3. Prevention: Set up IRS accounts only at IRS.gov.

4. Fake Charities

1. Description: Bogus charities created to exploit disasters or social causes.
2. Goal: To collect donations and personal information.
3. Prevention: Verify charities using the IRS Tax Exempt Organization Search.

5. False Fuel Tax Credit Claims

1. Description: Scammers promote this credit to unqualified taxpayers.
2. Goal: To induce fraudulent claims.
3. Prevention: Claim credits only if you meet IRS eligibility requirements.

6. Misuse of Sick & Family Leave Credits

1. Description: Fraudsters encourage false claims for expired COVID-era credits.
2. Goal: To obtain fraudulent refunds.
3. Prevention: Be aware that the IRS is actively auditing these claims.

7. The Non-Existent “Self-Employment Tax Credit”

1. Description: False claims of a $32,000 refund for self-employed workers.
2. Goal: To deceive taxpayers into believing they qualify for a non-existent credit.
3. Prevention: Research tax benefits from trusted sources.

8. Fictitious Household Employees

1. Description: Fabricating household employees to claim fraudulent sick and family leave credits.
2. Goal: To obtain fraudulent refunds.
3. Prevention: Only report real employees with valid W-2 documentation.

9. Overstated Withholding Scams

1. Description: Inflating withholding amounts to trigger large refunds.
2. Goal: To receive fraudulent refunds.
3. Prevention: Report accurate earnings and withholding amounts.

10. Misleading “Offer in Compromise” Mills

1. Description: Shady tax firms making false promises of reducing tax debt.
2. Goal: To charge high fees for services taxpayers don’t qualify for.
3. Prevention: Use the IRS Offer in Compromise Pre-Qualifier tool.

11. Ghost Tax Preparers

1. Description: Preparers who file returns but refuse to sign them.
2. Goal: To submit fraudulent information without accountability.
3. Prevention: Use registered tax professionals with a PTIN.

12. Spear Phishing Targeting Tax Professionals

1. Description: Targeted phishing emails to tax preparers, stealing taxpayer data.
2. Goal: to steal client information.
3. Prevention: Verify client inquiries and use secure software.

Staying Safe and Reporting Scams

1. Report Scams: Use Form 14242 or the IRS Lead Development Center.
2. Stay Informed: Visit IRS.gov for updates and the full Dirty Dozen list.
3. Protect Your Data: Be vigilant in safeguarding your personal and financial information.

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