June 10, 2025 by Mike Antonacci

The Internal Revenue Service (IRS) has released its annual “Dirty Dozen” list for 2025 (see IR-2025-26, Feb 27, 2025, for entire press release), warning taxpayers, businesses, and tax professionals about common tax scams that can occur year-round. These scams range from phishing emails to fake tax credits, seeking to steal money and personal information. The Dirty Dozen is an awareness campaign rather than a legal or enforcement document, highlighting schemes such as:

  1. Email Phishing & Smishing
    • Fraudsters send unsolicited emails or texts impersonating the IRS or financial entities. They promise false refunds or threaten legal action, luring individuals into providing sensitive data or installing malware.
  2. Misinformation on Social Media
    • Incorrect tax advice spreads on platforms like TikTok, pushing taxpayers to file inaccurate or fraudulent returns. The IRS warns against following “viral” tax advice that leads to illegal claims.
  3. Fake Help with IRS Individual Online Accounts
    • Scammers pose as third parties offering to set up or help with a taxpayer’s IRS Online Account. In reality, they gather personal data to file false returns or steal identities.
  4. Bogus Charities
    • Criminals create fake charities, often after disasters, to exploit goodwill. Donations to illegitimate groups are neither tax-deductible nor used for genuine charitable work.
  5. False Fuel Tax Credit Claims
    • Unscrupulous tax preparers entice taxpayers to claim the fuel tax credit without qualifying. This credit largely applies to off-highway business/farm use and not to most filers.
  6. Misuse of Sick Leave & Family Leave Credits
    • Available only to self-employed individuals (2020–2021 pandemic periods). Scammers encourage people to file Form 7202 incorrectly, claiming wages they did not earn as self-employed.
  7. Non-existent “Self-Employment Tax Credit”
    • Promoters mislabel legitimate sick/family leave credits, luring taxpayers with promises of large refunds. The IRS is scrutinizing such claims closely.
  8. Improper Household Employment Taxes
    • Taxpayers invent fictitious household employees, falsely reporting wages to claim sick and family leave credits they did not pay.
  9. Overstated Withholding Scams
    • Con artists encourage people to falsify Forms W-2, 1099, and other income documents to overstate income and withholding. The IRS will hold or deny refunds that cannot be verified.
  1. Misleading Offers in Compromise (OIC)
    • The Offers in Compromise (OIC) program is an important program that helps people settle their federal tax debts when they are unable to pay in full. “OIC mills” aggressively market settlement services to people who do not qualify, charging hefty fees. Taxpayers can check eligibility for free with the IRS’s Offer in Compromise Pre-Qualifier tool.
  2. Ghost Tax Return Preparers
    • Preparers who refuse to sign returns or include their PTIN should be avoided. Warning signs include preparers who base fees on refund size or ask taxpayers to sign blank returns.
  3. New Client Scams & Spear Phishing
    • Cybercriminals pose as potential clients, sending malicious links or attachments to tax professionals.

The IRS also reminds taxpayers to be vigilant against other abusive schemes involving trusts, offshore accounts, and individual retirement arrangements. Anyone encountering tax scams or unscrupulous preparers should file a report using Form 14242.