The IRS’s Dirty Dozen list is more than a warning—it’s a call to action. While awareness of these scams is important, it’s only half the battle.

Every year since 2002, the IRS has annually released its “Dirty Dozen” list of tax scams. With the new 2025 list, the IRS has emphasized scammers’ use of tried and true as well as new and creative methods of social engineering in their attempts to obtain sensitive tax data. The scams on the 2025 IRS Dirty Dozen list can be encountered at any time during the year, but they peak during regular and extended tax seasons. With numerous tax changes continuously impacting taxpayers, scams continue to occur at an alarming rate and with an increasing number of people falling prey. Don’t be one of them. Be hypervigilant when opening unsolicited emails and accessing texts, especially when they appear to be official.

Some scams are complex, with sophisticated algorithms being used to steal identities. Other scams are as simple as picking up the telephone, sending a text or issuing an email to trap unaware and unsuspecting taxpayers. Not surprisingly, phishing and social media scams continue to be two of the most prevalent ways in which taxpayers have been victimized.

The IRS’s Dirty Dozen list is more than a warning—it’s a call to action. While awareness of these scams is important, it’s only half the battle. The real work lies in proactively protecting your financial well-being by partnering with professionals who can spot red flags before they become huge problems.

1. Phishing and Smishing Attacks

The IRS is again warning about phishing and smishing schemes where cybercriminals try to steal a taxpayer's information through scam emails or text messages. Scammers frequently use tax season as a front to fool people. With people anxiously awaiting the latest information about a refund or other tax issue, scammers will regularly pose as the IRS, a state tax agency or others in the tax industry in emails and texts.

Taxpayers should be alert to fake communications from scammers posing as legitimate organizations in the tax and financial community, including the IRS and states. These messages arrive in the form of an unsolicited text or email to lure unsuspecting victims to provide valuable personal and financial information that can lead to identity theft. There are two main types:

• Phishing is an email sent by fraudsters claiming to come from the IRS or another legitimate organization, including state tax organizations or a financial firm. The email lures the victims into the scam by a variety of ruses such as enticing victims with a phony tax refund or frightening them with false legal/criminal charges for tax fraud.
• Smishing is a text or smartphone SMS message that uses the same technique as phishing. Scammers often use alarming language like "Your account has now been put on hold" or "Unusual Activity Report," with a bogus "solutions" link to restore the recipient's account. Unexpected tax refunds are another potential target for scam artists.

Takeaway

The IRS will never initiate contact via text or email regarding tax payments or refunds. If you receive an unexpected message about a tax issue, don’t react impulsively. Verify its source directly through the IRS website or your trusted tax professional.

2. Social Media Tax Scams

With platforms like TikTok and Instagram driving viral trends, tax scams have found a new home on social media. Misleading posts might encourage you to claim fake credits, overstate your refund or use obscure loopholes that do not actually exist. While these schemes might seem clever—and often come with testimonials from people who “got a huge refund”—they can result in audits, fines and criminal charges for those who follow along.

Takeaway

Always vet tax advice from social media using official sources or licensed professionals. If a tax hack is trending, that does not make it legitimate. Moreover, providing any personal information at any level through social media can subject taxpayers to tax identity theft.

3. Third-Party Online Account Scams

The IRS is warning taxpayers to watch out for scammers who try to sell or offer help setting up an online account on IRS.gov that puts their tax and financial information at risk of identity theft. In this scam targeting individuals, swindlers pose as a "helpful" third party and offer to help create a taxpayer's IRS online account. People should remember they can set these accounts up themselves. Third parties making these offers will often try to steal a taxpayer's personal information under the guise of assistance in creating the account. Taxpayers can establish their own online account and should do so only through IRS.gov. These scammers often ask for the taxpayer's personal information including address, Social Security number or individual taxpayer identification number and photo identification. The criminal then sells this valuable information to other crooks. They can also use the sensitive information to file fraudulent tax returns, obtain loans and open credit accounts. The IRS urges people to watch out for these criminals pretending to be helpful.

Takeaway

The only place individuals should go to create an IRS online account is IRS.gov. We do not recommend use of third-party assistance other than the approved IRS website authentication process to create an IRS online account. We believe taxpayers can and should establish their own online account.

4. Fake Charities

Whether earthquakes, storms or wildfires, good-natured taxpayers rally to help victims after an emergency or disaster by donating money. Unfortunately, scammers often try to prey on these well-intentioned donors by posing as fake charities, hoping to steal not only money, but also personal and financial data that can be used in tax-related identity theft. Taxpayers who donate money or goods to a charity might be able to claim a deduction on their federal tax return if they itemize their deductions, but charitable donations are only permissible if they go to a qualified tax-exempt organization recognized by the IRS.

Takeaway

Always research charities using the IRS’s Tax-Exempt Organization Search tool before giving.

5. False Fuel Tax Credit Claims

The IRS is once again warning taxpayers to watch out for promoters pushing improper fuel tax credit claims that taxpayers are not qualified to receive. The fuel tax credit is not available for most taxpayers since it applies only to off-highway business and farming use. Taxpayers should be on the lookout out for erroneous fuel tax credit claims being promoted by scammers. Scammers will often charge a hefty fee for these bogus claims, and participants also face the possibility of identity theft.

Takeaway

Always remember: If a tax deal sounds too good to be true, it likely is. If someone encourages you to claim a tax credit that clearly does not apply to your situation, be wary. Protect your personal information and work with a tax professional who focuses on accuracy—not loopholes.

6. Credits for Sick Leave and Family Leave

The credit for sick leave and credit for family leave were available for self-employed individuals for 2020 and 2021 during the pandemic—but the credit has not been available since. The IRS is also seeing repeated instances where taxpayers are using a 2021 Form 7202, “Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals,” to incorrectly claim a credit based on income earned as an employee and not as a self-employed individual.

Takeaway

This credit only applies to income from self-employment during 2020 and 2021—not later tax years.

7. Bogus Self-Employment Tax Credit

Misleading social media posts continue to promote a nonexistent "self-employment tax credit," encouraging taxpayers to file inaccurate claims. These promotions target self-employed individuals and gig workers, falsely promising substantial payments related to the COVID-19 pandemic period. Similar to deceptive marketing surrounding the employee retention credit, this misinformation suggests that many people qualify for tax credits and payments of up to $32,000—when in fact they do not.

The credit being referenced is not the so-called self-employment tax credit, but rather the credits for sick leave and family leave, which are more limited and technical provisions. Eligibility for these credits is specific, and many taxpayers do not qualify. The IRS is actively reviewing claims submitted under this provision, and those filing inaccurate claims risk potential consequences.

Takeaway

Be cautious of misleading social media claims about a "self-employment tax credit." This credit does not exist and scammers are instead utilizing the sick leave and family leave credits, which have strict eligibility requirements.

8. Improper Household Employment Taxes

In some cases, taxpayers may “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.

Takeaway

If you know you did not pay wages and then claim you did, that is an intentional wrongdoing by the taxpayer—otherwise known as tax fraud. Claims like this can result in severe civil penalties and potential criminal action.

9. The Overstated Withholding Scam

A new scheme is circulating on social media, encouraging individuals to submit false information on tax forms like Form W-2, Wage and Tax Statement, and various 1099 forms, such as Form 1099-NEC.

In this "overstated withholding" scam, fraudsters advise people to fabricate large income and withholding amounts—often including a fake employer—and file an electronic tax return hoping to receive a sizable refund based on the false withholding claims.

If the IRS cannot verify the reported wages, income or withholding credits, the refund will be delayed for further investigation.

This scheme has several variations, involving forms like W-2, W-2G, 1099-R, 1099-NEC, 1099-DIV, 1099-OID and 1099-B, as well as claims tied to the Alaskan Dividend Fund, Schedule K-1 with reported withholding, and other unspecified sources of withholding credits.

Takeaway

Taxpayers should always file a complete and accurate tax return. They should only use legitimate information returns, such as an employer-issued Form W-2, to complete returns correctly.

10. Offer in Compromise Mills

The IRS continues to see instances of heavily advertised promises offering to settle taxpayer debt at steep discounts. The IRS sees many situations where taxpayers do not meet the technical requirements for an offer, but they had to face excessive fees from promoters for information they could have easily obtained themselves.

Offers in compromise are an important program to help people who cannot pay to settle their federal tax debts. We are a proponent of this program and have helped hundreds of taxpayers save significant tax dollars via this program. But “mills” can aggressively promote offers in compromise in misleading ways to people who clearly do not meet the qualifications, or oversell the potential savings, frequently costing taxpayers thousands of dollars. 

Takeaway

This program is a legitimate option for those who genuinely cannot pay their federal tax debt. However, the problem occurs when scammers mislead taxpayers who don’t qualify, charging excessive fees for information freely available from the IRS. Taxpayers should research the program directly through IRS.gov to understand their options and see if they might qualify.

11. Ghost Tax Return Preparers

Taxpayers should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. Some “ghost” tax preparers refuse to sign the tax return, ask people to sign a blank return or refuse to provide or include their IRS preparer tax identification number (PTIN) as required by law. They also encourage taxpayers to take advantage of tax credits and benefits for which they do not qualify. These are all common warning signs, and people should always rely on a trusted tax professional.

Takeaway

Legitimate tax professionals will always sign your return and include their PTIN. If someone insists they can get you a bigger refund but won’t attach their name to the work, that’s your cue to walk away.

12. New Client Scams and Spear Phishing

The IRS urges tax professionals and businesses to be on the lookout for a variety of suspicious email requests. Through these spear phishing emails, scammers try to impersonate new clients and steal client data, tax software preparation credentials and tax preparer identities with the goal of getting fraudulent tax refunds. These are also sometimes referred to as “new client scams,” and the fraudulent requests can range from an email that looks like it’s from a potential new client to a request targeting payroll and human resources departments asking for sensitive Form W-2 information.

The IRS recommends, as do we, using a two-person review process when receiving these types of requests for Forms W-2. The IRS also recommends that businesses require that any requests for payroll be submitted through an official process, like the employer's human resources portal.

There are easy steps that tax pros and businesses can take to avoid being fooled by these common schemes, including extra caution when opening emails, clicking on links or sharing sensitive client data. Extra care can go a long way to protect tax professionals and businesses as well as their clients and customers.

Takeaway

Businesses and individuals, including tax pros, should always be cautious and look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email. Warning signs include poorly constructed sentences and unusual word choices. Be aware that by gaining access to a hacked email account, scammers can locate a genuine email from a previous victim's email account sent to their tax professional.

The 2025 vs. 2024 Dirty Dozen Comparison

 A Reminder of Seven Things the IRS Will Never Do:

• The IRS will never call you to demand immediate payment.
• The IRS will never demand a specific method of payment (prepaid debit card, gift card, wire transfer, etc.).
• The IRS will never call about taxes owed without first having mailed you a bill.
• The IRS will never demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
• The IRS will never ask you for credit or debit card numbers over the phone.
• The IRS will never threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
• The IRS will never call you to discuss an unexpected refund.

TAG's Perspective

Shield your personal information and data to stay safe and protect yourself from the IRS Dirty Dozen, among other scams. As we have been cautioning our clients and friends for years now, never respond to an unsolicited email, text or phone call from someone you do not know. That is, if you did not initiate the discussion, whether an email, text or phone call, etc.―do not proceed, do not respond. Just hang up or delete it. Scammers and criminal elements are relentless, and the simple approach of nonengagement avoids ugly consequences. These words of caution are now more prevalent than ever due to the uncertain economic conditions and an increasing number of fraudulent actors, because fear and uncertainty may make taxpayers more susceptible to scams. In addition, more business is being conducted remotely, which leads to a greater risk of fraudulent emails or phishing schemes. Finally, with the recent turbulence at many federal agencies, the IRS chief among them, taxpayers may be more likely to believe fraudulent IRS correspondence. Don’t fall for the bait.

For More Information

If you would like more information about this topic or your own unique situation, please contact John I. Frederick, Michael A. Gillen or any of the practitioners in the Tax Accounting Group. For information about other pertinent tax topics, please visit our publications page.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.