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Top Tax Scams to Avoid in 2025: Secure Your Finances
Scammers aren't calling it quits anytime soon. These con artists are evolving by the day, increasingly harnessing AI technology to impersonate trusted voices, whether it's an email that looks like your tax professional or phone calls mimicking IRS agents.
The IRS recognizes these threats, which is why they release an annual roster of the most dangerous scams—aptly named the Dirty Dozen. This list is not just a public service; it's your annual guide to safeguarding your finances.
As we look to 2025, here's what to remain vigilant about, and how you can prevent these scams from affecting you and your loved ones.
Why You Should Pay Attention
You might think, This could never happen to me. But statistics paint a different story. Scams are designed to outsmart your defenses, and AI makes fraudulent activities even more plausible. Additionally, the IRS will never make first contact via calls, emails, or texts, so remain skeptical of such outreach.
This article serves not just you, but also your family members, especially the technical novices who might still use passwords like “123456.”
Dicier Dozen: The IRS Dirty Dozen Scams for 2025
1. AI-Manufactured Phishing Communications
Increasingly, fraudsters are perfecting AI-generated emails and texts to look authentic, fooling even the cautious among us. These messages often feature convincing logos and personal information designed to trigger an urgent reaction.
Action Point: Do not click on any links from unsolicited IRS communications. Visit IRS.gov or confirm with your tax advisor.
2. Deceptive Tax Refund or Filing Ads
While scrolling through social media, beware of ads that promise lucrative refunds. While tempting, these services often fabricate returns, leaving taxpayers to bear the financial backlash later.
Action Point: Collaborate only with certified, reputable tax professionals.
3. Manipulative Offer-in-Compromise Mills
The genuine IRS program helps taxpayers facing IRS debts. However, exploitative schemes are rampant, promising miracle results while extracting upfront fees and disappearing afterward.
Action Point: Consult a qualified tax professional who knows your entire financial landscape.
4. Fraudulent Charities
Post-disaster scenarios see a rise in charity drives—some genuine, others less so.
Action Point: Verify the legitimacy of charities using IRS’s Tax-Exempt Organization Search. Genuine nonprofits don't ask for cryptocurrency or gift card donations.
5. Employee Retention Credit (ERC) Scams
Scammers are still filing fraudulent ERC claims. This trap gives you money in the short term but demands repayment with interest later.
Action Point: Walk away if someone pledges ERC eligibility without scrutinizing your records.
6. Spear Phishing Targeting Tax Professionals
This technique involves masquerading as the IRS to breach the digital vaults of tax professionals—risking exposure of confidential data.
Action Point: Engage with your tax preparer about their security measures to safeguard your data.
7. Misleading Tax Advice on Social Media
Viral tax advice can ensnare the uninformed into facing audits and penalties.
Action Point: Critically assess your sources; online personas with flashy setups don’t guarantee tax expertise.
8. "Ghost" Tax Preparers
Signs your return, fudges figures, then vanishes when red flags surface.
Action Point: Your preparer should sign your return and provide their PTIN—anything else is a red flag.
9. Imposter IRS Calls
The scammers’ threats may sound real, but payment demands via gift cards immediately indicate fraud.
Action Point: Hang up, report these calls to TIGTA, and remember the IRS won't initiate contact this way.
10. Bogus Tax Benefits Schemes
Promising large deductions and credits based on fictitious "loopholes" can lead to costly audits and penalties.
Action Point: Only claim deductions you can substantiate. Inquire into any vague “creative solutions” your accountant proposes.
11. Social Security Number Spoofing
This scam sees criminals filing returns using stolen numbers before taxpayers can.
Action Point: File taxes promptly and consider obtaining an Identity Protection PIN.
12. Fraudulent Fuel Tax Credit Applications
This benefit is solely for those with off-highway operations, and scammers exploit it as "hidden refunds."
Action Point: Be skeptical of anyone suggesting the IRS owes you fuel compensation without a clear explanation.
Be Proactive and Informed
While you don't need to live in anxiety, staying abreast of these scams is imperative. Educating others about these risks reduces the chances of scammers succeeding.
Take Action:
- Share this information with those who might be susceptible, like aging relatives.
- Adopt multi-factor authentication for your financial accounts.
- Verify identity and security protocols with your tax advisor.
- Report any dubious activities to the IRS and FTC.
- Whenever doubt arises, always pause and verify before proceeding.
Need a Trusted Tax Partner?
We’re here to provide meticulous review and filing assistance. Let's discuss how to secure your finances before scammers strike again. Contact our office today to schedule a strategy session.
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