You’re rushing to file your taxes before the April deadline, scrolling through emails when you see a message from the IRS. It says your refund is on hold due to an issue with your return, and you need to click a link to fix it. The panic sets in—what if you made a mistake? You click the link, enter your information, and just like that, a scammer has your Social Security number, bank account, and possibly your entire refund.
This isn’t just a “what if” scenario. It’s happening right now to taxpayers across the country.
Every year, tax season brings out the worst in scammers—people who prey on confusion, urgency, and the promise of fast refunds. That’s why the IRS releases its annual Dirty Dozen list, exposing the biggest tax scams of the year. Some of these scams are apparent red flags, while others are sneaky, sophisticated, and surprisingly easy to fall for.
Fortunately, understanding the nature of these scams can help you protect your money, identity, and peace of mind. Here are the 12 worst tax scams of 2025, so you can spot them before they cost you.
1. Phishing and Smishing Scams: Fake IRS Messages
Email and text scams are among the most common tax-related frauds. Scammers pose as the IRS or other financial institutions, sending fake emails (phishing) and text messages (smishing) designed to trick you into revealing sensitive personal and financial details.
These messages often claim your tax refund is ready or that there is a problem with your tax account. They include links to fraudulent websites where victims unknowingly provide Social Security numbers, bank details, or IRS login credentials.
How to Protect Yourself:
- The IRS never makes contact via email or text.
- Never click on links from unknown senders.
- Report phishing emails to phishing@irs.gov.
2. Bad Tax Advice on Social Media
Social media is littered with misleading tax advice, often from people claiming to have found “secret loopholes” to maximize refunds. These scams encourage taxpayers to file fraudulent returns by falsifying deductions, claiming credits they don’t qualify for, or altering tax forms like the W-2.
This misinformation spreads quickly, leaving unsuspecting taxpayers vulnerable to audits, penalties, and even criminal charges.
How to Protect Yourself:
- Only follow tax advice from licensed professionals or the IRS.
- Double-check tax credits and deductions before filing.
- Avoid “viral tax hacks” that sound too good to be true.
3. Fake IRS Account Assistance
Scammers offer to help taxpayers set up an IRS Online Account, only to steal their login credentials and personal details. With access to a taxpayer’s IRS account, fraudsters can file fraudulent returns, redirect refunds, and access sensitive tax records.
How to Protect Yourself:
- Set up your IRS Online Account yourself at IRS.gov.
- Never share personal information or login credentials with third parties.
4. Fake Charities
Fraudsters often create bogus charities to steal money and personal information, especially after disasters or crises. Taxpayers who donate to these fake organizations may think they are eligible for a charitable deduction, only to realize later that the “charity” was never IRS-approved.
How to Protect Yourself:
- Verify charities using the IRS Tax-Exempt Organization Search Tool.
- Never donate via cash, gift cards, or wire transfers.
5. False Fuel Tax Credit Claims
Scammers convince taxpayers they qualify for the Fuel Tax Credit, which is intended for off-highway business and farming use. They mislead people into filing for this credit to inflate refunds illegally.
How to Protect Yourself:
- The Fuel Tax Credit is not available to most taxpayers.
- Always verify credit eligibility before filing.
6. Bogus Self-Employment Tax Credit
A non-existent “Self-Employment Tax Credit” has been circulating online, promising big refunds to gig workers and self-employed individuals. In reality, there is no such credit. Many taxpayers who fall for this scam end up facing IRS audits and penalties.
How to Protect Yourself:
- The only valid self-employment tax credits are sick leave and family leave credits for specific tax years.
- Consult an actual tax professional before claiming unknown credits.
7. Fraudulent Household Employment Tax Refunds
Some taxpayers falsely claim household employment tax refunds by inventing fictional household employees and filing Schedule H (Household Employment Taxes). This fraudulent practice can lead to severe IRS penalties.
How to Protect Yourself:
- Only file employment tax returns for real household employees.
8. Overstated Withholding Scams
Scammers encourage taxpayers to inflate their income and tax withholdings on W-2s or 1099s to claim an enticing fraudulent refund. The IRS flags these returns for review, delaying refunds and increasing audit risks.
How to Protect Yourself:
- Only file taxes using legitimate employer-issued W-2s and 1099s.
- Avoid anyone claiming they can “maximize your refund” through withholding tricks.
9. Misleading “Offer in Compromise” Tax Relief Services
The Offer in Compromise (OIC) program allows some taxpayers to settle tax debts for less than they owe. However, some tax relief firms mislead taxpayers into thinking they qualify when they don’t, charging thousands in upfront fees for a service they will never receive.
How to Protect Yourself:
- Use the IRS OIC Pre-Qualifier Tool to check eligibility for free.
- Consult a trusted tax professional, not a firm making false promises.
10. Ghost Tax Preparers
Shady tax preparers—often called ghost preparers—charge taxpayers for preparing returns but refuse to sign them, making it harder to hold them accountable. Many of these preparers inflate deductions and credits to generate larger refunds, leaving the taxpayer responsible for any penalties.
How to Protect Yourself:
- Always use a licensed tax preparer who signs your return.
- Never sign a blank or incomplete tax return.
11. Spear Phishing and “New Client” Scams
Cybercriminals pose as potential clients to trick tax professionals into clicking on malicious email attachments that compromise their systems. Clicking on such email attachments allows hackers to steal client data and personal information.
How to Protect Yourself:
- Verify all new clients before sharing sensitive information.
- Use multi-factor authentication for email and tax software.
12. IRS Impersonation Calls and Texts
Scammers call or text taxpayers, pretending to be IRS agents, claiming they owe back taxes and must pay immediately or face legal action. These calls often use threatening language to scare victims into sending money.
How to Protect Yourself:
- The IRS never calls, emails, or texts demanding payment.
- Report scam calls to the Treasury Inspector General for Tax Administration (TIGTA).
Stay Safe from Tax Scams in 2025
Tax scams are becoming more sophisticated, but by staying informed, taxpayers can avoid falling victim. The best defense is to:
- stay skeptical
- double-check information
- and only trust official IRS resources and licensed tax professionals.
If you suspect a scam, report it to the IRS, the Federal Trade Commission (FTC), or TIGTA. And if you need legitimate tax help, always seek advice from qualified tax professionals who follow IRS regulations.
Stay alert, informed, and safe this tax season!
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