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Top IRS Scams of 2025: How to Protect Your Finances
The landscape of financial scams is evolving at a rapid pace.
Fraudsters are becoming increasingly adept. Their methods? More sophisticated. Their stories? Convincingly genuine—thanks to AI’s ability to replicate voices, emails, and even your accountant’s communication style.
The IRS recognizes these threats, which is why they publish an annual list detailing the most pernicious scams targeting everyday taxpayers.
Known as the Dirty Dozen, consider this your yearly insider alert.
Here’s what you need to be aware of in 2025 to ensure you and your loved ones aren’t unwitting victims.
Why This Is Relevant (Even If You Avoid Suspicious Links)
Maybe you’re thinking, This doesn’t affect me.
However, statistics indicate otherwise.
Scammers are evolving rapidly. Many now bypass traditional warning signs.
They don’t just trick you—they deceive you. AI enhances their credibility. Technology obscures their tracks. Remember, the IRS will never initiate contact through phone calls, emails, or texts.
So yes—this article applies to you.
As well as to your parents, children, and even that friend still using “123456” as their password.
The Top 12 Tax Scams of 2025 (a.k.a. The Dirty Dozen)
1. AI-Driven Phishing Scams
An alarming trend this year?
Fraudsters are utilizing AI to craft hyper-realistic emails and texts identical to communications from the IRS, your tax software provider, or your accountant.
Think official logos, personal touches, clickable “portals.” Plus, just enough urgency to make you react spontaneously.
Solution:
Avoid clicking on any links in unexpected IRS messages. The IRS never starts contact this way. Always navigate directly to IRS.gov or consult your tax professional.
2. Deceptive Social Media Ads Offering “Refund Assistance”
Picture this:
Scrolling Instagram, a sponsored post claims, “Secure a $10K refund—even with zero tax filing!”
Sound unrealistic? It sure is.
These fraudulent “services” file bogus returns in your name, which might temporarily net you money. But eventually, the IRS will reclaim it—alongside penalties.
Solution:
Engage only with licensed, verified tax experts. If your refund appears exorbitant, inquire further.
3. Offer in Compromise Fraud
This is a legitimate IRS scheme aiding taxpayers with significant debts that they can’t repay fully. But some nefarious entities are exploiting it by offering unrealistic forgiveness assurances, charging upfront fees, and then disappearing.
Solution:
If indebted to the IRS, consult a tax expert familiar with your entire financial picture—not a call center leveraging a purchased debt list.
4. Phony Charities
Disaster unfolds. Headlines proliferate. And suddenly, “charities” solicit donations via email, text, or platforms like GoFundMe.
While some are genuine, others are expertly fabricated.
Solution:
Before donating, verify the charity’s legitimacy through the IRS Tax-Exempt Org Search. Authentic charities won’t seek gift cards or crypto contributions.
5. Persistent Employee Retention Credit (ERC) Scams
Even in 2025, scammers are aggressively promoting false ERC claims, leading unsuspecting business owners into trouble.
These third-party “ERC factories” submit false claims, yielding undeserved refunds...only for the IRS to reclaim those funds with interest.
Solution:
If someone assures your eligibility without reviewing your records, walk away immediately.
6. Targeted Phishing Attacks on Tax Professionals
This particular scam targets tax professionals.
Hackers dispatch convincing IRS-like emails, aiming to breach an entire client database.
One misstep, and all your data becomes compromised.
Solution:
Ask your tax preparer about their security protocols. Ensure your sensitive data is well-protected.
7. Misleading Tax Advice via TikTok and YouTube
Common erroneous advice includes: “Avoid taxes—just form an LLC and deduct everything.”
This is manipulation, not guidance.
This path often leads younger taxpayers straight into audits and associated penalties.
Solution:
Assess your sources diligently. Just because someone has a video platform doesn’t mean they grasp tax regulations.
8. Untraceable Tax Preparers
These operators will file your return but refuse to sign it.
Their reluctance stems from illegal practices such as manipulating figures and vanishing when the IRS approaches.
Solution:
Ensure your preparer signs your return and includes their PTIN (Preparer Tax Identification Number). If they decline, move on.
9. Fraudulent “IRS Agent” Calls
An old tactic, but now automated and more aggressive than ever.
Scammers issue threats of jail, asset confiscation, or “instant legal actions” unless you remit payment through gift cards (a red flag by itself).
Solution:
Simply hang up. Report such calls to TIGTA. And remember: the IRS won’t contact you unexpectedly or request payments in this manner.
10. Fictitious Tax Benefit Claims
Fraudsters are advertising non-existent deductions, credits, and loopholes to inflate refunds, focusing on energy credits and education costs.
Remember, if it sounds fictitious, it likely is.
Solution:
Claim only verifiable amounts. If your tax professional seems “innovative” in confusing ways, seek clarification.
11. Social Security Number Identity Theft
One of the oldest tricks—scammers employ stolen or generated SSNs to submit fraudulent returns before taxpayers can file their legitimate taxes.
Victims typically learn about it once the IRS rejects their actual return as “duplicate.”
Solution:
File your taxes early. Consider securing an Identity Protection PIN (IP PIN) from the IRS. Additionally, activate multi-factor authentication for your tax-related accounts.
12. Fabricated Fuel Tax Credit Schemes
Meant strictly for off-road business applications (e.g., farming, not commuting), this credit is still misconstrued as a “secret refund.”
Solution:
If approached with “The IRS owes you fuel money,” recognize it as a scam. Never sign unfamiliar paperwork.
Conclusion: Exercise Caution, Be Skeptical, and Stay Savvy.
Fear isn’t necessary. Staying informed is.
Here’s the reality: scammers thrive in the shadows.
The more this information is shared, the fewer opportunities bad actors have to succeed.
Protect Your Household:
Forward this article to someone who could be susceptible (like aging parents).
Enable multi-factor authentication for all financial accounts.
Inquire how your tax professional confirms identities and safeguards data.
Report any dubious actions to the IRS at andFTC.gov.
In uncertain situations, always pause and authenticate before disclosing information.
Need Expert Eyes on Your Tax Returns?
We specialize in reviewing, filing, and safeguarding against fraud—because it’s our expertise, not yours.
Contact us for strategic insights before the next phishing attempt arrives.
Reach out to schedule a strategy consultation.
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