Top IRS Scams for 2025: Your Essential Guide to Avoiding Fraud
Here’s the truth of the matter:
Scammers aren’t slowing down anytime soon.
They’re becoming more sophisticated, quicker, and eerily skilled at impersonating people we inherently trust—especially in today’s digital age where AI can replicate voices, emails, and even the writing style of your trusted tax advisor.
The IRS is fully aware of these tactics, which is why they release an annual list highlighting the most egregious scams targeting average taxpayers. This list is famously known as the Dirty Dozen, and it’s crucially your annual heads-up.
As you navigate through 2025, let's break down what to look out for and how you can protect yourself and those close to you from falling victim to these scams.
Why You Should Care (Even If You’ve “Never Clicked a Suspicious Link”)
You might think, This won’t happen to me.
However, statistics suggest otherwise.
Scams are quickly evolving, and many are now specifically crafted to bypass your natural instincts. They don't just trick you—they manipulate you. AI enhances the deception to make it more believable. Technology makes these scams more challenging to trace. And a crucial point to remember—the IRS will never initiate communication through phone calls, emails, or text messages.
So, yes—this content is relevant for you, your family, and even for that friend who still uses “123456” as their go-to password.
2025’s Most Alarming Tax Frauds (aka The Dirty Dozen)
1. AI-Crafted Phishing Emails and Text Messages
Perhaps the most alarming new trend is:
Scammers harnessing AI to produce emails and texts that look exactly like legitimate communications from the IRS, your accounting software, or even your tax advisor.
These messages combine official logos, personal information, and clickable “portals,” often instilling a false sense of urgency that prompts hasty actions.
What to do:
Never click on links in unsolicited messages purportedly from the IRS. Instead, head directly to IRS.gov, or better yet, reach out to your trusted tax professional.
2. Fake “Refund Assistance or Filing Help” Advertisements on Social Media
While scrolling through Instagram, have you come across a post that exclaims:
“We can get you a $10K refund—even if you haven’t filed taxes!”
If it sounds too wonderful to be true, it undoubtedly is. These fleeting “services” submit fraudulent returns on your behalf. You might even receive some money upfront, yet the IRS eventually demands it back, along with penalties.
What to do:
Align yourself with only certified, legitimate tax experts. If your refund claim seems overwhelmingly generous, it's wise to ask questions.
3. Offer in Compromise Scams
The Offer in Compromise is a valid IRS program designed to facilitate settlements for taxpayers unable to pay their full debt. However, unscrupulous companies exploit this by promising guaranteed resolution, charging upfront fees, and then abandoning you.
What to do:
If you owe taxes to the IRS, consult a tax professional who can assess your entire financial situation—not a call center that acquires your data from debt listings.
4. Fraudulent Charitable Organizations
When tragedy strikes, so do fraudulent charities, seeking donations through emails, texts, or platforms like GoFundMe.
Distinguishing between legitimate and fake organizations can be challenging.
What to do:
Use the IRS Tax-Exempt Organization Search to verify any charity before contributing. Authentic charities will not insist on gift card or cryptocurrency donations.
5. Employee Retention Credit (ERC) Scams
Even in 2025, the ERC scams continue to ravage unsuspecting business owners.
Third-party "ERC mills" submit fraudulent claims on your behalf, leading to unexpected demands for repayment plus interest by the IRS.
What to do:
If someone guarantees your qualification without reviewing your records, heed it as a red flag.
6. Spear Phishing Targeting Tax Professionals
This scam is tailored towards professionals. Cybercriminals use fake IRS communications to compromise a tax professional’s database.
One misstep or click, and all your sensitive information is jeopardized.
What to do:
Inquire about the security measures your tax preparer employs. You have a right to know how your data is being protected.
7. Misleading Tax Advice on TikTok and YouTube
Advice like “Just start an LLC and write off everything” is rampant and deceptive.
Such misleading guidance has resulted in numerous young taxpayers being audited and penalized.
What to do:
Critically evaluate your information sources. Just because someone has a substantial following doesn’t mean they’re knowledgeable about tax laws.
8. Ghost Preparers
These individuals complete your tax return yet refuse to sign them.
The reason is simple—they’re engaging in unlawful activity, manipulating figures, inflating credits, and disappearing when confronted by the IRS.
What to do:
Ensure that your preparer includes both their signature and PTIN (Preparer Tax Identification Number) on your return. This accountability is crucial.
9. Impersonation Phone Calls from “IRS Agents”
Although this scam is old, it persists with increased automation and aggression.
Scammers might threaten imprisonment, seizure of assets, or immediate legal actions unless payment is made via unconventional methods such as gift cards.
What to do:
Hang up promptly, report the call to TIGTA, and remember: the IRS never initiates such communications abruptly or demands payment in this way.
10. Fraudulent Tax Benefits Claims
Scammers illegally promote fake deductions, credits, and tax loopholes, particularly focusing on energy and education expenses.
If it seems fabricated, it probably is.
What to do:
Stick to claiming deductions you can substantiate with documentation. If your tax advisor suggests questionable tactics, seek clarifications.
11. Social Security Number Fraud
Fraudsters use stolen or fabricated SSNs to file returns before genuine taxpayers can.
Victims remain unaware until the IRS rejects their actual return as a duplicate.
What to do:
File your returns early, consider applying for an Identity Protection PIN from the IRS, and activate multi-factor authentication on your tax software.
12. Inaccurate Fuel Tax Credit Claims
This credit is strictly for off-highway business operations (for example, agricultural use, not daily commuting). However, scammers falsely advertise this as a “concealed rebate.”
What to do:
If anyone falsely claims the IRS owes you a fuel rebate, do not sign anything without understanding it fully.
Final Thoughts: Stay Vigilant, Stay Informed
Fear isn’t necessary, but being informed is key.
The positive takeaway: scammers rely on peoples' lack of awareness. The more people you inform about this, the more challenging it becomes for deceptors to succeed.
Safeguard Yourself + Your Loved Ones:
Share this article with potentially vulnerable individuals (e.g., elderly family members).
Enable multi-factor authentication across all financial accounts.
Discuss with your tax consultant how they verify identities and secure your data.
Report any suspicious incidents to the IRS andFTC.gov.
When uncertain, always pause and verify before taking action, especially when providing information or making payments.
Looking for Professional Advice on Tax Concerns or Scams?
Our team is here to review, file, and provide protection strategies—because this is our area of expertise, not yours. Reach out to us today and let's strategize before the next phishing attempt reaches your inbox.
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