Every year, the IRS publishes a list of the most prevalent and dangerous tax-related scams affecting individuals and business owners alike. Known as the “Dirty Dozen,” this annual roundup highlights how fraudsters continue to adapt their tactics and how taxpayers must stay vigilant in response.
With advancements in artificial intelligence and an increase in financial misinformation online, 2025’s list underscores just how sophisticated tax scams have become. Whether you’re a dental professional, a small business owner, or simply a proactive taxpayer, it’s critical to understand these threats and how to protect yourself.
Many of today’s scams no longer look or sound suspicious. AI-generated messages, fake websites, and phishing attempts now mimic IRS communications and even legitimate tax professionals with impressive accuracy. Even those who consider themselves financially savvy can fall victim to these schemes if they’re not cautious. That’s why education is your best defense.
Let’s walk through the top scams to watch for in 2025, and how to avoid them:
The IRS Dirty Dozen Scams for 2025
1. AI-Driven Phishing Emails and Texts
Scammers are using AI to craft convincing messages that appear to be from the IRS, your tax software, or your CPA. These communications often include personal details and official-looking links.
How to protect yourself: The IRS will not initiate contact via email or text. Always verify the sender and access tax-related accounts directly through IRS.gov.
2. Fraudulent Tax Services on Social Media
Pop-up ads on social media platforms often promise fast, large refunds—even for non-filers. These entities may file false returns using your information, leaving you liable when the IRS uncovers the fraud.
How to protect yourself: Only work with credentialed, experienced tax professionals. If something sounds too good to be true, it likely is.
3. Misuse of Offer in Compromise Programs
Certain companies advertise guaranteed tax debt relief through IRS settlement programs—often charging steep fees with no real results.
How to protect yourself: Legitimate Offer in Compromise requests require a thorough financial review. Avoid firms that promise outcomes without understanding your full tax picture.
4. Fake Charities
Scammers frequently set up bogus nonprofits after natural disasters or major events to solicit donations via email, text, or crowdfunding.
How to protect yourself: Always verify a charity’s tax-exempt status through the IRS Tax-Exempt Organization Search.
5. Questionable Employee Retention Credit Claims
Although the ERC program was created to support employers during the pandemic, third-party firms continue to promote false eligibility in exchange for large fees.
How to protect yourself: Eligibility should be assessed by a trusted tax advisor. The IRS has increased audits for improper ERC claims, so proceed with caution.
6. Cyberattacks Targeting Tax Professionals
Fraudsters are sending fake IRS notifications to tax preparers, aiming to gain access to client data. This exposes taxpayers to identity theft and return fraud.
How to protect yourself: Ask your tax professional about their data security measures and how they handle client confidentiality.
7. Misleading Tax Advice on Social Media
Viral videos and online posts increasingly promote illegal or incorrect strategies—such as writing off personal expenses through an LLC.
How to protect yourself: Rely on professionals with proper credentials, not influencers. Misinformation can lead to audits, penalties, and legal consequences.
8. Ghost Preparers
A ghost preparer completes your return but doesn’t sign it, which is a red flag. They may manipulate your tax data for a higher refund and disappear when issues arise.
How to protect yourself: Ensure your preparer signs the return and includes their Preparer Tax Identification Number (PTIN). Unsigned returns are not trustworthy.
9. IRS Impersonation Calls
Aggressive phone scams continue, often using robocalls or spoofed numbers threatening legal action unless immediate payment is made.
How to protect yourself: The IRS will never demand payment over the phone or request unusual forms of payment like gift cards. Hang up and report suspicious calls to the Treasury Inspector General for Tax Administration (TIGTA).
10. Fictitious Tax Credit Claims
Some preparers promote unqualified claims for energy credits, education deductions, or lesser-known incentives, often without substantiation.
How to protect yourself: Only claim deductions and credits you can document. If your preparer cannot clearly explain a credit, ask for clarification.
11. Stolen Social Security Numbers
Fraudulent returns are often filed early in the season using stolen SSNs. Victims discover the issue when their legitimate return is rejected.
How to protect yourself: File your return as early as possible and consider applying for an Identity Protection PIN (IP PIN) from the IRS for added security.
12. False Fuel Tax Credit Filings
This credit is restricted to certain off-road business uses, but scammers continue to file claims for everyday consumers.
How to protect yourself: If you’re not using fuel for qualified off-highway business activities, this credit doesn’t apply. Don’t let anyone convince you otherwise.
Safeguarding Your Information Starts with Trusted Guidance
Scams are evolving, but so are the tools to protect yourself. The best first step is working with professionals who understand both your business and the broader tax landscape.
With Dental CPA, we go beyond tax filing. We help you build a proactive, secure, and informed financial strategy tailored to your practice. Whether it’s tax planning, audit defense, or scam protection, we’re here to support your peace of mind.
Ready to make sure your tax filings are accurate and protected? Contact our office today at cal.dental.cpa@gmail.com to schedule a consultation and get clarity on your next steps. Let’s take the guesswork, and the risk, out of your tax season.