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With tax season in full swing, scammers are ramping up efforts to steal money, sensitive data, and even taxpayer identities. From fake tax credits to social media-fueled misinformation, the schemes on this year’s list serve as a reminder that fraudsters are constantly evolving their tactics.
What Is the Dirty Dozen?
Each year, the IRS compiles the Dirty Dozen to warn taxpayers, businesses, and tax professionals about prevalent scams. While this list is not a formal enforcement priority, it is a critical educational tool designed to help people avoid falling victim to tax-related fraud.
"Scammers are relentless, and they use the guise of tax season to trick taxpayers into a variety of traps," said Terry Lemons, IRS communications senior adviser. "These red flags can lead to everything from identity theft to being misled into claiming tax credits for which they’re not entitled."
The IRS first launched the Dirty Dozen campaign in 2002 to counter emerging fraud trends. Since then, the agency has worked alongside state tax agencies and industry leaders through the Security Summit to protect taxpayers from scams that could jeopardize their financial well-being.
2025 Dirty Dozen: The Top Tax Scams
This year’s Dirty Dozen features a mix of long-running scams and new threats fueled by technology and social media. Here are some of the top concerns:
Phishing & Smishing Scams – Fraudulent emails and text messages impersonating the IRS or tax professionals attempt to steal personal data. Clicking on links in these messages could lead to identity theft or malware installation.
Bad Social Media Advice – Viral tax "hacks" on platforms like TikTok and Instagram encourage taxpayers to falsely claim credits or manipulate forms, potentially leading to audits and penalties.
Fake IRS Individual Online Account Assistance – Scammers offer to "help" taxpayers set up an IRS Individual Online Account, only to steal their personal information and file fraudulent tax returns.
Bogus Charities – Fraudsters create fake nonprofit organizations, especially following natural disasters, to trick well-meaning donors into handing over cash and personal details.
False Fuel Tax Credit Claims – Some taxpayers are misled into claiming the Fuel Tax Credit, which is only available for certain off-highway business and farming uses.
Misleading Sick & Family Leave Credit Claims – Promoters encourage taxpayers to claim pandemic-era sick and family leave credits that are no longer available, risking hefty penalties.
Bogus Self-Employment Tax Credit – Scammers convince gig workers and freelancers that they qualify for a nonexistent self-employment tax credit.
Fake Household Employment Claims – Fraudulent tax preparers file Schedule H (Household Employment Taxes) with fabricated wages to generate false refunds.
Overstated Withholding Scams – Social media fraudsters encourage taxpayers to falsify W-2s or 1099s to claim excessive withholding and obtain large refunds.
Misleading Offers in Compromise – Some companies aggressively promote tax relief programs like Offers in Compromise (OIC) to taxpayers who don’t qualify, charging hefty fees for false promises.
Ghost Tax Preparers – Shady tax preparers refuse to sign returns or provide a valid Preparer Tax Identification Number (PTIN), leaving taxpayers vulnerable to fraud.
Spear Phishing Attacks on Tax Pros – Cybercriminals impersonate "new clients" to gain access to sensitive financial data, putting tax professionals and their clients at risk.
Beyond the Dirty Dozen: Other Abusive Tax Schemes
While the Dirty Dozen focuses on some of the most pervasive scams, the IRS warns that other fraudulent tax avoidance strategies continue to surface. These include offshore tax schemes, fake trusts, and deceptive retirement arrangements that falsely promise tax relief.
How to Report Tax Scams
The IRS urges taxpayers to be vigilant and report scams as soon as possible. If you suspect a fraudulent tax scheme, you can file a report using Form 14242—the Report Suspected Abusive Tax Promotions or Preparers form.
Mail reports to: Internal Revenue Service, Lead Development Center MS7900, 1973 N. Rulon White Blvd., Ogden, UT 84404. Fax reports to:877-477-9135
Additionally, individuals who provide information about fraudulent tax schemes may be eligible for monetary awards through the IRS Whistleblower Office.
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