Each year, scammers develop new ways to exploit taxpayers, and in 2025, the IRS has identified several fraud tactics in its annual “Dirty Dozen” list. These scams target individuals, tax professionals, and even businesses, leading to financial loss, identity theft, and potential legal consequences for those who unknowingly participate in fraudulent schemes.

• Fake Charities – Fraudsters exploit people’s generosity by setting up illegitimate charities, especially after natural disasters, tricking individuals into making non-deductible donations.
• Social Media Tax Misinformation – Influencers promote misleading tax refund strategies, such as falsifying W-2 forms or claiming nonexistent credits, which can result in IRS audits and penalties.
• Phishing and Smishing Attacks – Scammers send fraudulent emails and text messages claiming to be from the IRS to steal personal and financial information or install malware.
• Bogus Tax Credits – Individuals are falsely encouraged to claim credits that no longer exist, such as COVID-19-era self-employment tax credits, or credits only meant for specific industries, like the Fuel Tax Credit.
• Fake Employees and Clients – Some scammers fabricate household employees to claim sick leave wages, while cybercriminals impersonate clients to steal tax professionals’ sensitive data.