The Internal Revenue Service (IRS) recently released its annual “Dirty Dozen” list. This rundown shines a light on the most prevalent and pernicious tax scams likely to make headlines in 2025. This year’s list focuses on dangers that face both taxpayers and tax preparers, underscoring the effort by the IRS for everyone to be more alert. The IRS wants to arm taxpayers with the information they need to prevent themselves from falling victim to these fraudulent actions.

The “Dirty Dozen” list is an irreplaceable watchdog tool for taxpayers. Most significantly, it teaches them how to identify and avoid scams that seek to obtain their personal information, financial assets, and business intelligence. The IRS advises taxpayers to stay alert to scams and other schemes year-round, especially during tax filing season. By learning about these scams, taxpayers can better protect themselves and avoid becoming victims of fraud.

New Client Scams Target Business Data

One big area of worry in 2025 would be the rise of client scams. These scams are characterized by crooks posing as potential clients to gain access to confidential business information. Businesses need to be especially wary about doing business with new clients. They need to authenticate identities and intentions prior to exposing any proprietary data.

The IRS cautions that no business should have any security safeguards that are not robust. They have to ensure their data doesn’t fall into malicious, adversarial hands. This means verifying the legitimacy of potential new clients and being on guard against unsolicited requests for sensitive information. By remaining aware, companies can ensure that they don’t fall prey to these scams.

These scams use the most sophisticated of tactics in this new era, all specifically crafted to mislead even the most shrewd business owner. That’s why ongoing education and awareness are critical in stopping data breaches and protecting against potential financial losses.

Spear Phishing and W-2 Fraud: Ongoing Threats

Spear phishing attacks continue to be deadly serious. Scammers are targeting login credentials and sensitive tax information with tax-themed phishing emails. These emails can be incredibly realistic, spoofing messages from institutions we know and trust like our banks or the IRS. Under this scam, taxpayers should look for any email that seems suspicious with links or requests for personal information.

W-2 fraud is another long-time standby of scammers, who con employees into revealing sensitive employee information by posing as a boss or manager. Fraudsters impersonate high-level executives or persons with authority to acquire W-2 forms and other sensitive information. They then use this stolen information to file fraudulent tax returns. Third, employers need a process to screen the legitimacy of each request for employee data. For starters, they need to ensure strong internal controls so that such access is impossible.

This is why the IRS is encouraging businesses to train their employees to spot these scams. They call for protocols to be developed for sharing and managing sensitive data. Frequent in-person training helps organizations identify weak points. Security audits work to close these vulnerabilities, drastically lowering the chance of becoming a target of such schemes.

Fake Charities and False Credit Claims

Fraudsters often exploit charitable giving, especially during a crisis such as #COVID19. They take advantage of people’s goodwill, often at times of disaster or to support positive social change. These sham charities collect donations under the pretense of helping but invest few or no dollars in real relief, pocketing money for themselves. Taxpayers need to do their homework on any charity that they are considering donating to, to make sure that it is an appropriate, valid charity.

False credit claims, which are commonly circulated over social media, misinform Americans about how they can qualify for dozens of different tax credits. These schemes often advertise fake tax credits or deductions, luring individuals into submitting fraudulent tax returns. Taxpayers should always go to the official IRS site or consult a qualified tax preparer for real information about tax credits and deductions.

The IRS issues a stern warning to taxpayers to beware of unsolicited tax advice and inaccurate information circulating on social media. Yet, these sources are notoriously inaccurate and may even advance scammy plans. By verifying information with trusted sources and seeking professional guidance, taxpayers can avoid making costly mistakes and protect themselves from scams.