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2025 IRS Dirty Dozen Tax Scams
Navigating the world of taxes can be overwhelming, especially when the IRS announces its annual "Dirty Dozen" list of common tax scams.
In this video, we're breaking down the top schemes and giving you the peace of mind that comes with being prepared.
Stay one step ahead to protect your hard-earned money!
And remember...the #IRSSUCKS
John Briggs | Tax Genius
info@incitetax.com
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The 2025 IRS Dirty Dozen list. As a business owner, your mind is already racing with a million different things. The last thing you want to worry about is a tax scam. Each year, the IRS releases an annual list of the most common schemes that threaten taxpayers, businesses, and tax professionals. It's called the Dirty Dozen list, and we're breaking it down so you can stay informed and protected.
Scam number one: Phishing and smishing attacks.
You've probably run into this one at some point. Cybercriminals pretend to be the IRS through phishing emails or smishing text messages to trick you into revealing personal information or sending money. They can be very convincing, using alarming language or the promise of a big refund to get you to click a link. Remember, the IRS will never initiate contact with you by email, text, or social media to ask for your personal or financial information. If you get a suspicious message, do not click any links.
Scam number two: Bogus social media tax advice.
The amount of incorrect tax information on social media is growing every year. You'll see people encouraging you to misuse common tax documents or claim fake credits to get a bigger refund. This is just clickbait. Following this kind of advice can lead you straight into an audit and a heap of penalties. A real tax strategy is tailored to your unique situation. If a tip sounds too good to be true, it probably is. Make sure you're talking to a professional and taking the right precautions.
Scam number three: Fake charities.
Fraudulent charities are a constant problem, especially after a crisis or natural disaster. Scammers set up these fake organizations to take advantage of people's generosity, stealing both their money and personal information. Always verify a charity's tax-exempt status before donating. You can use the Tax Exempt Organization Search tool on IRS.gov.
Scam number four: Fraudulent tax credit claims.
The IRS is seeing scams involving false claims for various tax credits, including the fuel tax credit, credits for sick leave and family leave, and even made-up self-employment tax credits being promoted on social media. These credits have very specific requirements and don't apply to most taxpayers. Be wary of anyone promising you a credit that seems too good to be true.
Scam number five: Overstated withholding.
This scheme, often seen on social media, encourages people to file fake W-2 or 1099 forms with exaggerated income and withholding amounts to get a larger refund. This is tax fraud. The IRS flags and holds these fraudulent returns for review. You can avoid this scam by ensuring your documents are authentic and that your reported income and withholdings are accurate. Always consult a professional accountant to verify your forms.
Scam number six: Improper household employment taxes.
In this scam, fraudsters invent fictional household employees and file a Schedule H to falsely claim a refund based on fake sick leave and family medical leave wages that were never paid. This is another clear case of tax fraud. Make sure your tax return is honest and accurate, and that you have proper documentation to back up any claims.
Scam number seven: Misleading offers in compromise.
An offer in compromise is a legitimate IRS program, but shady promoters aggressively market it to unqualified taxpayers, charging large fees and promising to settle tax debt for pennies on the dollar. If you have overwhelming tax debt, speak with a qualified tax professional. The IRS has a free tool to help you see if you qualify.
Scam number eight: Ghost preparers.
A ghost preparer is someone who prepares your return but refuses to sign it. They often submit illegal returns with inflated refunds, then disappear when the IRS comes calling—leaving you to face the penalties. Always work with a licensed professional who signs your return and includes their Preparer Tax Identification Number (PTIN).
Scam number nine: New-client spear-phishing.
This scam targets tax professionals. Cybercriminals pose as potential new clients to trick tax professionals into opening malicious attachments or links. This compromises their systems and allows hackers to access sensitive client information. Work with a team that takes your privacy and security seriously.
Scam number ten: IRS online account scams.
Scammers may offer to help you set up an IRS individual online account to steal your tax and personal information. You should only create an IRS account directly on the official IRS.gov website. Never accept unsolicited offers of help.
Scam number eleven: Abusive tax shelters.
These are complex schemes marketed by promoters to help people avoid paying taxes. Participating in them can lead to significant penalties. If a strategy seems overly complex—or too good to be true—it’s a major red flag. Always consult a qualified tax professional to ensure you’re following a legal and ethical strategy.
Scam number twelve: Payroll and HR scams.
Cybercriminals target payroll and HR professionals to steal personal information or payroll funds. Businesses should have strong cybersecurity protocols and verify any suspicious requests, even if they appear to come from a trusted source.
This list isn’t about living in fear—it’s about being informed and prepared. We believe small business owners like you shouldn’t have to navigate the confusing tax landscape alone. You’re working hard and deserve to achieve success without sacrificing your well-being. Let us help you put a strategic tax plan in place so you can feel confident and secure.
And remember—even if it looks like they’re trying to help you with this list, it’s to protect their money, not yours. The IRS still sucks.