It’s Tax Day. Hopefully, you’ve been able to file your income tax returns and or file an extension.
I filed my taxes on April 13, one day earlier than last year. I always tell myself that I won’t be pushing the deadline, but I seem to complete my taxes at the last minute. At least it’s done for another year, thank goodness.
Whether you’ve filed your taxes or filed for an extension, here are 12 tax scams that we all need to be aware of. With scams on the increase due to the gutting of the regulatory authority of federal agencies, we need to increase our vigilance on all kinds of scams and also wrongdoing by the companies we deal with daily.
Here’s the Internal Revenue Service’s annual Dirty Dozen list of tax scams for 2025:
Email phishing scams: Taxpayers and tax professionals should 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. The two main types are:
- Phishing: An email sent by fraudsters claiming to come from the IRS. The email lures the victims into the scam with a variety of ruses such as enticing victims with a phony tax refund or threatening them 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.
Never click on any unsolicited communication claiming to be from the IRS as it may load malware. This may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.
Bad social media advice: Incorrect tax information on social media can mislead taxpayers with bad advice, possibly leading to identity theft and tax problems. Social media platforms regularly circulate inaccurate or misleading tax information, including on TikTok where people share wildly inaccurate tax advice. Some involve urging people to misuse common tax documents like Form W-2.
Follow social media advice from the IRS, tax professionals, and other reputable sources.
IRS online account help from scammers: Swindlers can pose as a “helpful” third party and offer to help create a taxpayer’s IRS online account at IRS.gov. Actually, no help is needed, and the agency offers tips on how to sign up and avoid scams. Third parties making these offers will try to steal a taxpayer’s personal information and try to submit fraudulent tax returns in the victim’s name to get a big refund.
Fake charities: Scammers set up fake organizations. They seek money and personal information, which can be used to further exploit victims through identity theft. Taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.
False fuel tax credit claims: The credit is meant for off-highway business and farming use and isn’t available to most taxpayers. However, shady tax return preparers and promoters, including people on social media, continue enticing taxpayers into inflating their refunds by incorrectly claiming the credit.
Credits for sick leave and family leave: This specialized credit was available for self-employed individuals for 2020 and 2021 during the pandemic; the credit isn’t available for later tax years. Again, a dishonest tax preparer or social media influencers may advise taxpayers about this incorrectly.
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 information about the employee retention credit, there’s inaccurate information being circulated that suggests many people qualify for the tax credit and payments of up to $32,000 when they actually don’t.
People on social media are using the term “self-employment tax credit” incorrectly for the credits for sick leave and family leave. As mentioned above, many people don’t qualify for these credits, and the IRS is closely reviewing these claims so be careful.
Improper household employment taxes: Misinformation encourages taxpayers to “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.
The overstated withholding scam: This is a recent scheme circulating on social media encouraging people to fill out Form W-2, Wage and Tax Statement, or other forms such as Form 1099-NEC and other 1099s with false income and withholding information.
In this 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 can’t verify the wages, income, or withholding credits on the tax return, the tax refund will be held for further review.
Misleading Offers in Compromise: The Offers in Compromise is a program that helps people settle their federal tax debts when they’re unable to pay in full. But “mills” can aggressively promote compromise offers 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 Offer in Compromise Pre-Qualifier tool.
Ghost tax return preparers: People should 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 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 it or include their IRS Preparer Tax Identification Number as required by law. Taxpayers should never sign a blank or incomplete return.
New client scams and spear phishing: The “new client” scam involves spear phishing attempts that target tax pros. Cybercriminals pretend to be new, potential clients to trick tax professionals and other businesses into responding to their emails. When they respond, 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.
Phishing is a term given to emails or text messages designed to get users to provide personal information, and spear phishing is a phishing attempt tailored to a specific organization or business.
Other abusive schemes
Other abusive schemes and bogus tax avoidance strategies can involve different types of trusts, offshore schemes, and even individual retirement arrangements.
Report abusive tax schemes and tax return preparers
To report an abusive tax scheme or a tax return preparer, use the online Form 14242 – Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed Form 14242 PDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations.
Scammers are relentless, and they use the tax season to try trick taxpayers into falling into a variety of traps.
