IRS Warns Americans of ‘Dirty Dozen’ Tax Season Scams

The IRS Warns Americans About the "Dirty Dozen" Tax Scams

As tax season approaches, the IRS has issued a timely warning to Americans about the "Dirty Dozen," an annual list of the most common and dangerous tax scams. This year’s list highlights schemes that are particularly prevalent during tax season but can occur at any time. The IRS is urging taxpayers, businesses, and tax professionals to stay vigilant and take extra precautions to protect their personal and financial information from fraudsters. Falling victim to these scams can result in significant financial loss, stolen identities, and even legal trouble. With scammers becoming increasingly sophisticated, it’s more important than ever to understand these threats and take steps to avoid them.

Key Scams to Watch Out For in 2025

The IRS has identified several scams that pose a significant risk to taxpayers this year. One of the most pressing concerns is phishing and smishing scams, where fraudsters pose as the IRS or other financial institutions through unsolicited emails or text messages. These scams often involve fake tax refunds, threats of legal action, or malicious links and malware. The IRS emphasizes that it will never initiate contact via email or text, and taxpayers should never click on unsolicited links or download attachments from unknown sources.

Another growing issue is misleading tax advice on social media, particularly on platforms like TikTok. Scammers are spreading false information to encourage people to misuse tax documents or claim deductions they are not eligible for, which can lead to significant penalties. The IRS and the Coalition Against Scam and Scheme Threats (CASST) warn taxpayers to rely only on legitimate sources, such as tax professionals and official IRS communications, for accurate tax advice.

Fraudsters are also targeting the IRS Individual Online Account, offering fake third-party services to steal personal data for fraudulent tax returns. Taxpayers are advised to use only official IRS channels for managing their accounts. Additionally, fake charities remain a persistent problem, especially during crises, as scammers exploit people’s generosity. Donations only qualify for tax deductions if made to IRS-recognized charities.

Other notable scams include ghost tax return preparers, who pose as professionals but refuse to sign returns or provide required identification numbers. Taxpayers should avoid these preparers and seek help from trusted, registered professionals. Fraudsters are also promoting overstated withholding schemes, encouraging taxpayers to inflate income and withholding on forms like W-2s and 1099s to claim larger refunds. These fraudulent claims can result in audits and penalties. Finally, scammers are targeting the Offers in Compromise (OIC) program, promising debt relief for an upfront fee, even for those who don’t qualify. The IRS offers a free pre-qualifier tool to help taxpayers determine their eligibility.

The IRS and Partners Fight Back Against Scams

The IRS is working closely with law enforcement, financial institutions, and other stakeholders to combat these scams. The Security Summit, a collaboration between the IRS, state tax agencies, tax software companies, and financial institutions, aims to prevent refund fraud and protect taxpayers. In 2024, the IRS also launched the Coalition Against Scam and Scheme Threats (CASST) to address the growing threat of scams fueled by social media platforms like TikTok, where incorrect tax advice is spreading rapidly.

Terry Lemons, IRS Communications Senior Adviser, emphasized that scammers are relentless and use tax season as an opportunity to trick taxpayers into falling into various traps. These scams can lead to identity theft, legal trouble, and financial losses. The IRS has been highlighting the Dirty Dozen list for over two decades as part of its broader efforts to educate and protect taxpayers.

What Taxpayers Can Do to Protect Themselves

Taxpayers are urged to be cautious and verify tax-related information through legitimate sources. The IRS reminds everyone that it will never demand payment or personal information via email, text, or social media. Taxpayers should also avoid falling for misleading or deceptive claims, especially on social media. If someone suspects they are a victim of fraud, they should report it immediately to the IRS.

To stay safe, taxpayers should take additional precautions, such as seeking advice from trusted tax professionals, avoiding unsolicited offers for tax help, and being wary of fake charities. By staying informed and taking proactive steps, Americans can protect themselves from falling victim to these sophisticated scams.

The Impact of Tax Scams and the Importance of Vigilance

The consequences of falling victim to a tax scam can be severe. Financial losses, stolen identities, and legal trouble are just a few of the potential outcomes. As scammers continue to evolve their tactics, taxpayers must remain vigilant. The IRS is committed to combating these threats, but it also relies on taxpayers to take steps to protect themselves. By understanding the risks and taking proactive measures, Americans can safeguard their personal and financial information during tax season and beyond.

Conclusion: Stay Informed and Protect Yourself

The IRS’s Dirty Dozen list serves as a critical reminder of the dangers posed by tax scams. By staying informed, verifying information through legitimate sources, and being cautious of unsolicited offers, taxpayers can reduce their risk of falling victim to these schemes. The IRS and its partners are working tirelessly to combat fraud, but vigilance is key. Remember, your personal and financial security depends on it.