It’s the first quarter of 2025, and the IRS has released its annual “Dirty Dozen” list of common tax scams. Below is a summary of several common scams and how to be aware of (and prepare for) them.
1. Email Phishing Scams
The IRS has observed a surge in email and text scams targeting taxpayers and professionals alike. Be vigilant against fraudulent communications from imposters posing as legitimate tax and financial entities, including the IRS, state tax agencies, and tax software companies. These scams often arrive as unsolicited texts or emails, aiming to deceive recipients into divulging sensitive personal and financial information, potentially leading to identity theft.[1]
Phishing: Fraudsters send emails masquerading as the IRS, using tactics like fake tax refunds or threats of legal action for tax fraud to ensnare victims.
Smishing: Scammers send alarming text messages, such as "Your account has been put on hold," or "Unusual Activity Report," with a fake "Solutions" link to restore account access. Promises of unexpected tax refunds are another common ploy.
Important Reminder: Never click on unsolicited communications claiming to be from the IRS, as they may contain malware or ransomware.
For more information on phishing and smishing, click here.
2. Beware of Bad Social Media Advice
In 2025, misleading tax information on social media continues to be a significant concern. Platforms like TikTok often circulate inaccurate tax advice, potentially leading to identity theft and tax issues. Some posts even encourage misuse of tax documents like Form W-2.
The IRS and CASST advise against falling for these scams and recommend following trusted sources for tax advice, such as the IRS and reputable tax professionals. Filing fraudulent tax returns can result in severe civil and criminal penalties.[2]
For more information on bad social media advice, click here.
3. Scammers Offering IRS Individual OnlineAccount Help
Beware of scammers posing as "helpful" third parties offering assistance in creating an IRS Individual Online Account at IRS.gov. No external help is necessary, and the IRS provides guidance on signing up safely. These scammers aim to steal personal information and file fraudulent tax returns in the victim's name to claim large refunds.[3]
For more information on scammers offering online account help, click here.
4. Fake Charities
Fake charities often emerge during crises or natural disasters, exploiting public generosity. These fraudulent organizations seek money and personal information, which can lead to identity theft.
Taxpayers can claim deductions for donations to qualified tax-exempt organizations recognized by the IRS, but only if they itemize deductions.[4]
For more information on fake charities, click here.
5. False Fuel Tax Credit Claims
Recently, taxpayers have been misled into believing they qualify for the Fuel Tax Credit, intended for off-highway business and farming use. Unscrupulous tax preparers and social media promoters entice taxpayers to inflate refunds by incorrectly claiming this credit. The IRS has noted an increase in the misuse of Form 4136, Credit for Federal Tax Paid on Fuels. Taxpayers should seek accurate information to ensure proper credit claims.[5]
For more information on false fuel tax credit claims, click here.
6. Credits for Sick Leave and Family Leave
This credit was available for self-employed individuals in 2020 and 2021 during the pandemic but is not applicable for later tax years. The IRS has observed taxpayers incorrectly using Form 7202 to claim credits based on employee income rather than self-employment income.[6]
For more information on fake charities, click here.
Conclusion
Taxpayers should always be alert and proactive to avoid falling into scams where confidential tax information can be stolen and misused. For more information on how to report abusive tax schemes and abusive tax return preparers, click here.
Contact Montgomery Legal today to discuss your case and legal options. Schedule a Consultation or call (214) 432-6100.
[1] Dirty Dozen tax scams for 2025: IRS warns taxpayers to watch out for dangerous threats, IRS, available at https://www.irs.gov/newsroom/dirty-dozen-tax-scams-for-2025-irs-warns-taxpayers-to-watch-out-for-dangerous-threats.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
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