With the filing season in full swing, the IRS is warning both individual and business taxpayers against the most common tax scams and schemes with its annual Dirty Dozen list. Ranging from email schemes to misleading tax credits, many of these dangerous threats peak during filing season as people prepare their tax returns. 

Dirty Dozen List

Here are the top tax scams and schemes taxpayers should be aware of: 

1. Email phishing scams: Be alert to fake communications from entities posing as legitimate organizations in the tax and financial community, including the IRS, state tax agencies and tax software companies. These messages are usually unsolicited texts or emails to lure unsuspecting victims into providing valuable personal and financial information that can lead to identity theft. Never click on any unsolicited communication claiming to be from the IRS, as it may surreptitiously load malware or enable hackers to load ransomware that keeps the legitimate user from accessing their system and files. The two main types of these related scams include:

• Phishing: An email sent by fraudsters claiming to come from the IRS. The email lures victims into the scam with a variety of ruses, such as enticing them with a phony tax refund or making threats with false legal or criminal charges for tax fraud.
• Smishing: A text or smartphone SMS message where scammers often use alarming language such as, "Your account has now been put on hold," or "Unusual Activity Report," with a bogus "Solutions" link to restore the recipient's account. The promise of unexpected tax refunds is another potential tactic used by scam artists.

2. Bad social media advice: Another growing concern in 2025 continues to involve incorrect tax information on social media that can mislead honest taxpayers with bad advice, potentially leading to identity theft and tax problems. Social media platforms routinely circulate inaccurate or misleading tax information, including on TikTok where people share wildly inaccurate tax advice. For trusted social media advice, be sure to follow reputable sources, such as the IRS or tax professionals like at Doeren Mayhew. 

3. IRS Individual Online Account help from scammers: Swindlers can pose as a "helpful" third party and offer to help create a taxpayer's IRS Individual Online Account, when in reality, no help is needed. The agency offers tips on how to sign up and avoid scams. This online account provides taxpayers with valuable personal tax information, so watch out for third parties making these offers, as they will try to steal your personal information and submit fraudulent tax returns in your name to get a big refund.

4. Fake charities: Bogus charities are a perennial problem that can intensify whenever a crisis or natural disaster strikes. Scammers set up these fake organizations to take advantage of the public's generosity. They seek money and personal information, which can be used to further exploit victims through identity theft. 

5. False Fuel Tax Credit claims: A major concern during the past year involved taxpayers who were misled into believing they were eligible for the Fuel Tax Credit. The credit is meant for off-highway business and farming use and is not available to most taxpayers. However, unscrupulous tax return preparers and promoters, including people on social media, continue enticing taxpayers into inflating their refunds by erroneously claiming the credit. Before attempting to claim this credit, be sure to get more information and ensure you qualify. 

6. Credits for Sick Leave and Family Leave: This specialized credit is available for self-employed individuals for 2020 and 2021 during the pandemic; the credit is not available for later tax years. The IRS is seeing repeated instances where taxpayers are incorrectly claiming this credit based on income earned as an employee and not as a self-employed individual.

7. Bogus self-employment tax credit: Social media advice continues to circulate about a non-existent “Self-Employment Tax Credit” that’s misleading taxpayers into filing false claims. Promoters market it as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading marketing around the Employee Retention Credit, there is inaccurate information being circulated that suggests many people qualify for the tax credit and payments of up to $32,000 when they actually do not.

8. Improper household employment taxes: Taxpayers “invent” fictional household employees and then file Schedule H (Form 1040), Household Employment Taxes, to claim a refund based on false sick and family medical leave wages they never paid.

9. The overstated withholding scam: This is a recent scheme circulating on social media encouraging people to fill out a W-2 form or other forms like Form 1099-NEC and other 1099s with false income and withholding information. In this overstated withholding scheme, scam artists suggest people make up large income and withholding amounts as well as the fictional employer supplying those amounts. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund due to the large amount of fraudulent withholding. If the IRS cannot verify the wages, income or withholding credits entered on the tax return, the tax refund will be held pending further review, so remember to always file a complete and accurate tax return. 

10. Misleading Offers in Compromise: 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. But "mills" can aggressively promote OIC in misleading ways to people who clearly don't meet the qualifications, frequently costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS OIC Pre-Qualifier tool.

11. Ghost tax return preparers: Be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or bad sign is when the tax preparer is unwilling to sign the return. Avoid these "ghost" preparers who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN), as required by law. 

12. New client scams and spear phishing: In 2025, the IRS continues to see the "new client" scam, which involves spear phishing attempts that target tax pros. Cybercriminals impersonate new, potential clients to trick tax professionals and other businesses into responding to their emails. Once the tax pro responds, the scammer sends a malicious attachment or URL that can compromise the preparer's computer systems and allow the attacker to access sensitive client information. Businesses and individuals, including tax pros, should always look out for warning signs, such as poorly constructed sentences and unusual word choices. 

Here To Help 

Beyond this year’s Dirty Dozen list, there are several other abusive schemes and bogus tax avoidance strategies that can mislead well-intentioned taxpayers. Additionally, these schemes and scams can occur throughout the year as fraudsters look for ways to steal money, personal information and data, so it’s always important to be alert to these attempts. 

Be sure to work with trusted tax pros who know and understand your individual and/or business situations to ensure you filing appropriately and avoiding any potential penalties or fees.