IRS Dirty Dozen 2025: Internal Revenue Service Warns of Top Tax Scams This Tax Season

The Internal Revenue Service has released its annual IRS Dirty Dozen 2025 list, warning taxpayers about scams that threaten refunds and personal or financial information. Officials say fraud is escalating during tax season, with spear phishing emails, fake charities, and misleading social media posts spreading bad tax advice among the top risks.

Key Highlights from the IRS Dirty Dozen 2025

The IRS Dirty Dozen 2025 campaign is an annual awareness initiative—first launched in 2002—designed to protect taxpayers and tax professionals from evolving schemes. It is not an enforcement action or a formal listing of agency priorities, but a yearly educational effort to raise awareness about scams that can lead to tax fraud, identity theft, and fraudulent tax returns.

The IRS notes that many of these threats peak during filing season but can occur year-round. The official 2025 Dirty Dozen list includes all 12 of the following items:

Email Phishing and Smishing Scams

Criminals impersonate IRS employees through unsolicited emails and text messages—known as phishing and smishing, respectively—designed to steal personal and financial information. Phishing emails may lure victims with a phony refund promise or threaten them with false legal or criminal charges for tax fraud. Smishing texts often use alarming language such as "Your account has been put on hold" with a link to a bogus resolution page. Taxpayers should never click on unsolicited communications claiming to be from the IRS, as these messages may also load malware or ransomware.

Bad Social Media Advice

The IRS warns against relying on social media posts for tax advice. Inaccurate tax information continues to circulate on platforms such as TikTok, sometimes urging people to misuse tax documents, such as Form W-2. Filing based on misleading social media advice can result in fraudulent tax returns, significant civil and criminal penalties, and delayed refunds.

IRS Individual Online Account Help from Scammers

Scammers may pose as "helpful" third parties and offer to set up a taxpayer's IRS Individual Online Account on their behalf. No such assistance is needed. In reality, these bad actors are attempting to steal the taxpayer's personal information and file fraudulent returns in the victim's name to claim a refund. Taxpayers can set up their own account directly and securely at IRS.gov.

Fake Charities

Fraudulent charities are a recurring problem that often intensifies following a crisis or natural disaster. Scammers create bogus organizations to exploit public generosity, seeking money and personal information that can be used for identity theft. Taxpayers should verify that any charitable organization is recognized by the IRS before donating, as deductions are only valid for qualified tax-exempt organizations.

False Fuel Tax Credit Claims

The Fuel Tax Credit is specifically intended for off-highway business and farming use and is not available to most taxpayers. Unscrupulous preparers and promoters—including those on social media—have continued to mislead taxpayers into claiming the credit through Form 4136 to inflate their refunds. The IRS has seen a notable increase in these erroneous claims and urges taxpayers to confirm their eligibility before filing.

Credits for Sick Leave and Family Leave

This credit is available only to certain self-employed individuals for tax years 2020 and 2021 during the pandemic; it is not available for later tax years. The IRS has seen repeated misuse of Form 7202, where taxpayers incorrectly claim the credit based on income earned as an employee rather than as a self-employed individual.

Bogus Self-Employment Tax Credit

Promoters and social media posts continue to advertise a so-called "Self-Employment Tax Credit" that does not exist under that name. Marketers have falsely suggested that self-employed individuals and gig workers can receive payments of up to $32,000. The actual underlying provision—the credits for sick leave and family leave—is far more limited in scope, and many people simply do not qualify. The IRS is closely reviewing claims filed under this provision.

Improper Household Employment Taxes

In this scheme, taxpayers invent fictional household employees and file Schedule H (Form 1040) to claim refunds tied to false sick and family medical leave wages they never actually paid.

The Overstated Withholding Scam

Social media has promoted a scheme encouraging people to file Forms W-2 or various 1099s—such as Form 1099-NEC—containing fabricated income and withholding information from a fictional employer. The intent is to generate a fraudulent refund by inflating withholding amounts. The IRS will hold any refund it cannot verify it pending further review.

Misleading Offers in Compromise

The IRS Offer in Compromise (OIC) program is a legitimate option that allows eligible taxpayers to settle their federal tax debt for less than the full amount owed. However, OIC "mills" aggressively market this program to taxpayers who clearly do not qualify, frequently costing them thousands of dollars in fees. Taxpayers can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool at IRS.gov.

Ghost Tax Return Preparers

Most tax preparers provide professional and reliable service, but taxpayers should watch for warning signs of unscrupulous "ghost" preparers—those who prepare a return but refuse to sign it or include their IRS Preparer Tax Identification Number (PTIN) as required by law. Other red flags include charging a fee based on the size of the refund. Taxpayers should never sign a blank or incomplete return.

New Client Scams and Spear Phishing

Spear phishing attempts specifically targeting tax professionals remain a serious concern in 2025. Cybercriminals impersonate prospective new clients to trick tax pros into responding to emails, then send a malicious attachment or link that can compromise the preparer's systems and expose sensitive client data. Because a successful spear phishing attack can allow a thief to file fraudulent returns using stolen identities, tax professionals are urged to exercise caution before opening any unsolicited attachments or clicking unfamiliar links.

Background on the IRS Dirty Dozen Campaign

The campaign is part of the IRS's broader security strategy, supported by the Security Summit—a partnership with state tax agencies and the private tax industry. These collaborations have helped protect millions of taxpayers and billions of dollars from refund fraud. In 2024, the Coalition Against Scam and Scheme Threats (CASST) was formed following a surge in social media-fueled scams.

Quotes from IRS Officials on Tax Scams

"Scammers are relentless, and they use the guise of tax season to try to trick taxpayers into falling into a variety of traps. These red flags can lead to everything from identity theft to being misled into claiming tax credits for which they're not entitled," said Terry Lemons, IRS communications senior adviser. Under Lemons' leadership, the IRS created the Dirty Dozen campaign in 2002 to counter emerging scams nationwide.

Impact on Taxpayers and Tax Professionals

Falling for a scam can delay tax refunds, trigger audits, or complicate future filings tied to fraudulent tax returns. Many of the schemes on the Dirty Dozen list can expose taxpayers to tax-related identity theft, putting their personal and financial information at long-term risk. The Dirty Dozen list has long cautioned taxpayers about identity theft as part of the Security Summit's ongoing efforts in this area.

The IRS urges taxpayers to verify all information directly at IRS.gov and to seek guidance from a trusted tax professional rather than relying on unsolicited communications or unverified social media posts.

Official Sources on IRS Dirty Dozen 2025 Scams

• IRS Dirty Dozen 2025
  
• IRS Tax Scam Alerts
  
• Report Phishing Attempts

The IRS cautions that scammers may file fake returns, misuse personal data, or demand money through threats. Verifying details directly through IRS.gov remains the safest way to avoid scams, protect refunds, and ensure taxes are filed securely.

By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now