LEARNING CENTER
Top IRS Scams in 2025: Safeguard Your Finances
Let’s be clear: scammers are not taking a step back.
They're getting more cunning, quicker, and increasingly proficient at impersonating trusted voices—especially as AI becomes adept at mimicking voices, emails, and even your trusted tax adviser's writing style.
The IRS is taking notice. This is why they release an annual list of the most notorious scams targeting taxpayers. They term this list the Dirty Dozen. For us, it's your yearly caution alert.
Here’s how you can protect yourself and your loved ones in 2025.
Why This Impacts You (Even If You're Cautious with Links)
Thinking, This could never happen to me?
The reality is, scams are rapidly evolving. Many are now crafted to bypass your instinctive safeguards; they manipulate, not just mislead. AI enhances the deceit, while technology makes tracing tougher. Remember, the IRS will never initiate contact via call, email, or text.
This article is relevant for you—and your parents, kids, and even that friend who still uses "123456" as their password.
The 2025 Tax Scam Spotlight: The Dirty Dozen
1. AI-Driven Phishing Emails and Messages
This year's daunting trend?
AI-generated emails and texts convincingly imitate the IRS, your tax software, or even your CPA, replete with official logos, personal data, and seemingly credible 'portals', pushing you to act rashly.
Precaution:
Avoid clicking on unsolicited IRS-related links. The IRS does not contact via email or text. Always consult IRS.gov or your tax professional directly.
2. Fraudulent “Refund Assistance” Social Media Ads
While scrolling Instagram, a promoted post claims:
“Unlock a $10K refund—no tax filing necessary!”
Too good to be true? Absolutely. These services often file counterfeit returns using your details. While you might initially get money, the IRS later retrieves it, penalties included.
Precaution:
Trust only verified, licensed tax experts. If a refund seems too generous, always inquire further.
3. Exploitative "Offer in Compromise" Firms
The Offer in Compromise program genuinely assists taxpayers unable to pay their full tax debts by allowing settlements for less than owed.
However, some shady companies falsely promise sure forgiveness, charging upfront, only to disappear.
Precaution:
If you owe taxes, consult a tax expert with a comprehensive understanding of your situation, not a call center exploiting your debt info.
4. Bogus Charities
In times of disaster, numerous "charities" solicit donations through email, texts, or platforms like GoFundMe.
Some of these entities are legitimate, but many are meticulously falsified.
Precaution:
Verify charitable status with the IRS Tax-Exempt Org Search. Genuine charities won’t request gift cards or cryptocurrency donations.
5. Employee Retention Credit (ERC) Fraud
Still prevalent in 2025. Scammers press on with deceitful ERC claims, ensnaring business owners.
These external "ERC centers" submit false claims on your behalf. While you may receive funds, the IRS often demands repayment with interest.
Precaution:
If anyone assures qualification without reviewing your records, it's a red flag.
6. Tax Pro Spear Phishing
This scam targets professionals. Hackers employ fake IRS emails to infiltrate a tax pro's entire client database.
One inadvertent click risks exposing all client information.
Precaution:
Inquire about your tax preparer's security measures. You have the right to know how your data is protected.
7. Misleading Tax Tips on TikTok and YouTube
“Avoid taxes—form an LLC and deduct everything.”
This isn’t sound advice; it’s a dangerous lure, leading many young taxpayers toward audits and penalties.
Precaution:
Ensure your source is credible. Microphones and green screens do not equate to understanding tax legislation.
8. Ghost Tax Preparers
These unscrupulous “pros” prepare returns but refuse to sign them.
Why? Their actions involve illegal forgery and number inflation. Their signature absence ensures their liability avoidance.
Precaution:
Insist your preparer signs your return and includes their PTIN (Preparer Tax Identification Number). If not, it’s time to choose another professional.
9. Fake "IRS Agent" Calls
Continuing as a threat, this has evolved into automated harassment, threatening dire consequences unless you pay via questionable methods.
Precaution:
Hang up, report to TIGTA, and remember: the IRS never makes unscheduled calls or demands payment in this manner.
10. Fraudulent Tax Benefit Claims
Scammers propagate fictitious deductions, credits, and loopholes, particularly concerning energy credits and educational expenses.
If a claim seems fabricated, it likely is.
Precaution:
Claim only what you can substantiate. If your advisor suggests unconventional claims, seek clarity.
11. Social Security Spoofing
Fraudsters file fraudulent returns with stolen or fabricated SSNs, often resulting in rejected legitimate tax filings.
Precaution:
File promptly. Consider an IRS Identity Protection PIN and employ multi-factor authentication for your tax software.
12. False Fuel Tax Credit Filings
This particular credit is exclusively for off-highway business use, like farming, not commuting, yet scammers skew it as a "hidden refund".
Precaution:
If someone claims, “The IRS owes you gas money,” it’s likely a scam. Don't sign anything without comprehension.
Final Thoughts: Stay Alert, Question Everything
Fear isn't necessary. Staying updated on scams helps.
The upside: scammers thrive in secrecy. The more you share this knowledge, the fewer opportunities scammers have.
Shield Your Health + Your Family:
Share this information with those potentially vulnerable (e.g., elderly family members).
Implement multi-factor authentication across financial accounts.
Discuss ID verification and data protection with your tax expert.
Directly report any suspicious actions to the IRS andFTC.gov.
Continually pause and verify before proceeding with any financial decisions.
Want Expert Insight on Your Tax Situation?
Our team handles scrutiny, filings, and scam prevention—because it’s our specialization. Let’s strategize before the next phishing attempt arrives.
Reach out to arrange a consultation session.
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