Beware of the IRS Dirty Dozen Scams in 2025: Protect Yourself Now
The alarming rise of scams indicates that criminals are becoming increasingly sophisticated in their tactics. Leveraging advanced technologies like AI, they refine their methods to convincingly impersonate trusted sources, including your tax professional or even the IRS itself.
This annual warning list from the IRS, dubbed the Dirty Dozen, aims to inform taxpayers of the most dangerous scams targeting them. We encourage you to consider it an essential alert to safeguard your financial security in the coming year.
Here’s what you should watch out for in 2025, along with actionable steps to protect yourself and those you care about from falling victim.
The Importance of Vigilance Against Tax Scams
You may believe, It can’t happen to me. But scammers are constantly evolving, using methods specifically designed to bypass your defenses. AI enhances the realism of scams, complicating efforts to detect fraud, while the IRS will never initiate contact through email or text.
This alert is intended for everyone—yourself, your family, and even that friend who hasn’t updated their password beyond “123456.”
Breakdown of the 2025 Tax Scams – The Dirty Dozen
1. AI-Generated Phishing Attempts
Scammers are crafting highly convincing emails and texts using AI, tricking individuals into revealing sensitive information by posing as reputable entities like the IRS or your tax preparer.
Action: Never click on links in emails purporting to be from the IRS. Initiate contact by directly visiting IRS.gov or consulting your tax professional directly.
2. Dubious Social Media “Tax Help” Ads
Scrolling through Instagram, if you encounter ads promising unrealistic refunds without filing, steer clear. Unauthorized “services” can file fraudulent returns using your details.
Action: Engage only with licensed tax professionals. If a proposed refund seems implausible, ask questions.
3. Exploitative Offer in Compromise Schemes
While legitimate Offer in Compromise programs exist, some entities exploit these by offering false promises of debt settlement, charging fees, and then disappearing.
Action: Consult a knowledgeable tax professional who is familiar with your situation, rather than an anonymous call center.
4. Sham Charities
Fake charities often emerge in response to disasters, soliciting donations through various channels while deceiving well-meaning donors.
Action: Verify a charity's legitimacy through the IRS Tax Exempt Organization Search to ensure your contributions go to worthy causes.
5. Employee Retention Credit (ERC) Scams
The persistence of ERC scams demonstrates an ongoing threat, with fraudsters making false claims and leaving businesses to incur penalties.
Action: Be wary of those who promise eligibility without reviewing your financial records.
6. Targeted Spear Phishing for Tax Professionals
Scammers target tax professionals to access client details through fraudulent IRS emails.
Action: Ensure your tax preparer adheres to stringent security measures to protect your sensitive information.
7. Illegitimate Tax Advice on Social Platforms
Unsound tax strategies abound on platforms like TikTok and YouTube, drawing young taxpayers into hazardous territory with bad advice.
Action: Ensure you rely on information from accredited sources familiar with the tax code.
8. Deceptive Ghost Tax Preparers
These preparers submit your tax return without signing, activity often involving illegal practices.
Action: Confirm that your tax preparer provides their PTIN (Preparer Tax Identification Number) along with a signature on your return.
9. Automated Fake IRS Agent Calls
Despite its age, this scam has advanced, with automated calls threatening dire legal action if immediate payment isn’t made in gift cards—a conspicuous red flag.
Action: Terminate such calls promptly, report them, and remember the IRS will not contact you in this manner.
10. Fraudulent Tax Breaks and Benefits
Scams often involve exaggerating deductions around energy and education, resulting in illegal claims that attract penalties.
Action: Only claim deductions with documentation. Consult a trusted tax advisor if facing ambiguous claims.
11. Social Security Number Fraud
With compromised SSNs, scammers file returns to preempt legitimate filings, causing rejection issues for the true filers.
Action: File taxes early, consider an Identity Protection PIN (IP PIN) from the IRS, and enable multi-factor authentication where possible.
12. Misleading Fuel Tax Credit Claims
Fraudsters misrepresent this credit, meant strictly for specific business purposes like farming, as broadly applicable for personal use.
Action: Avoid agreements you don’t fully understand, and consult a tax professional for clarity.
Final Thoughts
It's crucial to remain cautious, informed, and proactive in protecting your financial information and integrity against evolving scams.
Promote awareness—forward this guide to those who could benefit from a reminder, like aging parents—so we collectively mitigate this threat.
Ensure Your Security:
Share this knowledge with vulnerable individuals.
Activate multi-factor authentication for all financial accounts.
Inquire how your tax professional safeguards your data.
Promptly report irregular activities to the IRS or the FTC.
Remember to pause and verify before proceeding with actions requested in communications.
Consultation and Protection
At Tangie R Cooper CPA Inc., our seasoned professionals are here to assist you with comprehensive tax planning and fortify your defenses against potential scams. Let’s collaborate to optimize your approach before the next fraudulent attempt arrives.
Contact us to schedule a strategic consultation today.
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