The annual “Dirty Dozen” list of schemes and scams for this year reminds us to think twice before clicking, maintain vigilance with social media, and understand that the Internal Revenue Service (IRS) is watching for taxpayers who submit creative tax returns.
Terry Lemons, IRS senior communications advisor, noted, “Scammers are relentless, and they use the guise of tax season to try tricking taxpayers into falling into a variety of traps. These red flags can lead to everything from identity theft to being misled into claiming tax credits for which they’re not entitled.”
Key scams to watch for in 2025
With that in mind, here are scams of note offered by the IRS this year:
- Digital danger: The IRS warns of both email and social media scams this year. By now, most people know that digital channels of all types are the domain of bad actors interested in identity theft and tax fraud. You may receive fraudulent communications on any of these platforms urging you to click, sign-in, call-back, or pay up.
- Fake IRS help: Bad actors may connect with you to offer assistance setting up an account with IRS.gov. The scammer then sets up an account to obtain your tax and personal information and uses it for identity or refund theft. If you are setting up an online account, check out the IRS advice on this issue.
- IRS Offer in Compromise (OIC): Promoters who offer to file an OIC that will rid you of overwhelming tax debt are a perennial problem. OICs are a good option for those who truly need them and can afford to pay to use them.
- Problems with tax credits: Be cautious around claims by marketers or others that you can file for fuel tax, family leave, and self-employment tax credits. Fuel Tax Credits are specialized credits that do not apply to most taxpayers, but are nonetheless promoted on social media. Sick Leave and Family Leave credits are pandemic-era credits that are no longer valid. Similarly, promoters hype a “self-employment” tax credit, which is the no-longer valid credit for Sick Leave and Family Leave. Filing for any of these credits likely boosts your chances of an IRS audit.
- ·Tax returns: Whether it is inventing household staff, or falsifying withholding or other deductions, make sure your tax return squares with reality. If you are using a tax preparer who is providing false information, they may be a ghost preparer who will be long gone by the time the letter from the IRS arrives, noting irregularities on your return.
Even sophisticated investors can fall prey to a scammer. Make sure you understand the tax return being prepared on your behalf—and that it accurately reflects your financial reality. If your situation is complex or you’re unsure of your strategy, consult an experienced tax attorney before filing.
Looking for experienced legal advice on criminal tax allegations? We can help
And—if you are involved in any of the schemes described above, consider speaking with one of our criminal tax lawyers. At Robert J. Fedor, Esq., L.L.C., we provide strong legal representation with the experience to advise you on options for developing an exit strategy that may help you avoid criminal charges. Contact our legal team today at 440-250-9709. We serve clients across the U.S. and internationally from our offices in Cleveland and Chicago.
If you are trying to juggle significant tax debt with the IRS, you can get the bottom line about how an Offer in Compromise may—or may not—be of help to you by taking a look at our free guidebook, Resolving Tax Debt With an Offer in Compromise.
