The Dirty Dozen: 12 Common Tax Scams

According to the Fiscal Year 2025 Annual Report released by the Internal Revenue Service (IRS) Criminal Investigation, $4.5 billion in tax fraud was identified in 2025, reflecting an increase of 111.8% from fiscal year 2024.

While these fraud statistics are alarming, it’s important to remember that there are steps you can take to protect yourself from tax-related scams.

Each tax season, the IRS compiles a list of 12 common scams called the “Dirty Dozen.” Their most recent 2025 Dirty Dozen list includes the following scams to watch for throughout tax season and year-round:

1. Phishing and Smishing

Have you ever received an email or text message claiming to be the IRS during tax season? If you receive one of these unsolicited emails (phishing) or text messages (smishing), delete them. 

The IRS will never contact you by email, text, phone, or social media to request personal or financial information. Most of their communications come through regular mail.

Learn how to spot and avoid phishing and smishing fraud attempts.

2. Social Media Schemes

While social media is great for staying connected, it can also be used by scammers to lure individuals into tax schemes. Additionally, social media platforms can circulate poor and inaccurate tax advice. 

Before acting on tax-related information seen on social media, you should confirm its legitimacy with the IRS or a trusted tax professional. You can also follow the official IRS social media accounts for accurate information and guidance.

3. “Third-Party” Online Account Help

If a third-party representative contacts you and offers to help set up your IRS online account, decline their offer. This could be a scammer wanting access to your personal tax and financial information so they can commit identity theft.

Taxpayers should set up their own online account on the IRS website.

4. Fake Charities

If a supposed charity contacts you and expresses an urgent need, pressures you to donate, or asks for donations via gift card or wire transfer, it is likely a scam.

Before donating, use reputable websites such as Charity Watch or Charity Navigator to assess the organization’s legitimacy.

And remember, never give out personal or financial information, including your Social Security number, credit card number, or personal identification number (PIN). You should only provide bank or credit card details after you’ve confirmed the organization’s legitimacy.

5. Fuel Tax Credit Claims

Most taxpayers cannot claim the Fuel Tax Credit intended for off-highway business and farming use. Yet, this doesn’t stop unscrupulous promoters from marketing it.

Look out for third-party representatives who encourage you to claim this credit and offer to help in exchange for a large fee. They may even offer to create fake fuel documents or receipts.

Instead, confirm your eligibility with the IRS or a trusted tax professional before claiming.

6. Credit for Sick Leave and Family Leave

This credit is available only to individuals who were self-employed in 2020 and 2021, during the pandemic. The IRS has noted instances in which taxpayers mistakenly claim this credit based on income earned as employees rather than as self-employed individuals.

If you’re uncertain about whether this credit applies to you, you should contact the IRS or consult a tax professional before making a claim.

7. Bogus “Self-Employment Tax Credit”

A growing tax scam on social media is misleading self-employed individuals and gig workers with claims about a fake “Self-Employment Tax Credit.” Promoters falsely claim that many individuals can qualify for a large payout related to the pandemic.

In reality, this credit does not exist. The misleading posts actually refer to the Credit for Sick Leave and Family Leave noted above, which applies only under particular circumstances. Most taxpayers do not qualify, despite what the online rumors claim.

The IRS is closely reviewing these claims and encourages taxpayers to exercise caution and verify information from trusted sources.

8. Improper Household Employment Taxes

Another emerging tax scheme involves taxpayers inventing fake household employees and claiming refunds they aren’t entitled to. Scammers falsely report paying sick or family medical leave wages — wages that were never actually paid — to trigger refundable credits.

This fraudulent tactic not only puts taxpayers at risk of audits and penalties but also contributes to rising levels of improper refund claims, which the IRS is actively cracking down on.

9. The Overstated Withholding Scam

A recent scam spreading on social media encourages individuals to file tax forms, such as W-2s and 1099s, with false income and withholding information. In some cases, scammers even tell you to make up employers in hopes of getting a large refund you aren’t actually owed.

If the IRS cannot confirm the information, it will hold the refund and review the return, which can lead to delays, penalties, and other serious consequences. Because this scam appears in many versions, taxpayers should use only real, employer-issued forms when filing their taxes.

10. Offer in Compromise “Mills”

The IRS’s Offer in Compromise program helps individuals who cannot pay some or all of their tax debts. But look out for “mills” that falsely advertise the program’s requirements or offer to help settle your tax debt in exchange for a fee.

To see if you’re eligible for the Offer in Compromise program, use the IRS’s Pre-Qualifier tool.

11. Shady Tax Preparers

While most tax preparers provide honest and professional services, some operate with less integrity.

Be cautious of “ghost” preparers who might ask you to claim tax credits and benefits you’re not eligible for. They often take a large percentage of your refund or might even steal it entirely. Once they prepare your tax return, they disappear, leaving you to face the consequences.  

Other signs of shady tax preparers include:

• Encouraging false income or fake deductions to increase your refund
• Suggesting you deposit your refund into their account
• Charging fees based on the size of your refund
• Only accepting cash payments
• Refusing to sign your tax return or provide their Preparer Tax Identification Number (PTIN)

To select a reputable and qualified tax preparer, use the IRS’s list of federal tax preparers to ensure yours makes the cut.  

12. Spear Phishing Attacks

If you’ve ever received a letter from a business or organization you have an account with stating they experienced a data breach, they were likely the victim of a scam known as spear phishing.

This scam involves fraudsters targeting specific individuals or businesses, often via malicious emails. They aim to gain access to sensitive systems to commit identity theft and then use this information to file fraudulent tax returns.

The “new client” scam is a growing spear phishing scheme. In these schemes, bad actors pose as potential clients seeking tax help. They send fake emails to tax professionals to gain access to their computer system and, ultimately, their client information.

The IRS warns individuals and businesses to watch for emails that include suspicious requests or links, poor grammar, and unusual word choices. These could be scammers attempting to steal client or customer information.

How To Report Tax Scams

If you encounter a tax scam at any point throughout the year, you should report it to the IRS so they can investigate.

You can also learn more about common scams and ways to protect yourself in the Connexus Security & Fraud Center.