IRS unveils 2025 ‘dirty dozen’ tax scams—what taxpayers must know

Author: ASBN Newsroom

The Internal Revenue Service (IRS) has released its annual “Dirty Dozen” list of tax scams for 2025, warning taxpayers, businesses, and tax professionals to remain vigilant against fraudulent schemes that threaten financial security and tax information. While many of these scams peak during tax filing season, they remain a year-round concern as fraudsters continually seek to exploit unsuspecting individuals.

“For more than two decades, the IRS has highlighted the Dirty Dozen to educate and protect taxpayers from scams,” said Terry Lemons, IRS communications senior adviser. “Scammers are relentless, using tax season as an opportunity to trick people into fraudulent schemes that can lead to identity theft and improper tax claims.”

First launched in 2002, the Dirty Dozen campaign is a public awareness initiative rather than a legal enforcement directive. In collaboration with state tax agencies, tax software providers, and financial institutions through the Security Summit, the IRS has successfully blocked billions of dollars in fraudulent refund claims. A related effort, the Coalition Against Scam and Scheme Threats (CASST), was also introduced last year in response to the growing impact of social media-fueled tax misinformation.

For 2025, the IRS highlights 12 key scams:

• Email Phishing & Smishing: Fraudulent emails or text messages impersonate the IRS, luring victims into providing personal information or clicking malicious links that can install malware.
• Bad Social Media Advice: Misinformation spreads rapidly online, often encouraging taxpayers to misuse tax forms, such as fraudulently claiming credits on Form W-2.
• Fake IRS Account Assistance: Scammers pose as helpers offering to set up an IRS Individual Online Account, only to steal personal information.
• Bogus Charities: Fraudulent charities emerge, particularly during crises, seeking donations that do not qualify for tax deductions.
• False Fuel Tax Credit Claims: This credit is limited to specific business uses, yet scammers encourage ineligible taxpayers to falsely claim it.
• Improper Sick Leave and Family Leave Credit Claims: Available only for self-employed individuals for 2020 and 2021, some taxpayers have been misled into wrongly applying for it.
• Nonexistent Self-Employment Tax Credit: Fraudulent social media posts promote a so-called “Self-Employment Tax Credit,” leading taxpayers to file false claims.
• Household Employment Tax Fraud: Taxpayers create fictitious household employees to fraudulently claim family medical leave wage refunds.
• Overstated Withholding Scam: Fraudsters encourage taxpayers to submit false income and withholding amounts to inflate refunds.
• Misleading Offer in Compromise (OIC) Mills: Firms aggressively promote OIC services to unqualified taxpayers, charging high fees for little to no benefit.
• Ghost Tax Preparers: Unscrupulous preparers fail to sign tax returns, leaving taxpayers responsible for errors and fraud.
• Spear Phishing Attacks on Tax Pros: Cybercriminals pose as new clients to gain access to sensitive tax data, potentially leading to widespread identity theft.

The IRS urges taxpayers to remain cautious, verify tax-related information through trusted sources, and report suspicious activity. For official guidance and resources on preventing tax fraud, visit IRS.gov.