Back in May 2025, the IRS quietly released a number that should make every filer sit up straight: they had already blocked more than 84,000 fraudulent returns and stopped roughly $1 billion in bogus refunds—before spring was even over.
Why so much, so fast? Scammers treat tax season like Black Friday. From January through mid-April, crooks know millions of us are hunting forms, tracking refunds, and nervously opening “IRS” emails. That urgency makes it the perfect time to pounce.
The good news: a little knowledge and a healthy dose of skepticism will stop nearly every scheme. Let’s walk through the modern hustle play-by-play.
The 2025 Scam Landscape
Every year the IRS publishes its infamous “Dirty Dozen”—the worst scams making the rounds. The 2025 list looks a lot like last year’s, but with sharper tech and bolder claims. Here’s the quick snapshot:
| Dirty Dozen Headline | What it Really Means |
|---|---|
| Phishing & Smishing | Fake emails or texts that steal logins or push malware. |
| Phone Impersonation | “IRS” calls demanding gift-card payments. |
| Identity-Theft Refund Fraud | Someone files your return first and steals your refund. |
| Ghost Preparers | Shady pros who won’t sign the return they created. |
| Credit & Refund Mills | Viral promises to land huge Employee Retention Credit or fuel-tax refunds you don’t deserve. |
| Fake Charities | Bogus “relief funds” after every disaster. |
| Offer-in-Compromise Mills | Debt-relief companies that charge thousands to fill out a free IRS form. |
| Crypto & Investment Tricks | Pay your “tax bill” with bitcoin for a discount or park gains offshore. |
| Refund-Advance Traps | High-fee loans and prepaid cards that chew up refunds. |
| AI Deepfake Cons | Synthetic voices and face-swap videos posing as bosses, tax pros or even the IRS. |
Source: IRS Dirty Dozen 2025 and allied alerts.
Who gets hit hardest? Seniors, first-time filers, small-business owners, and anyone who made money on gig apps or crypto last year. If that’s you—or frankly, any taxpayer in the U.S.—read on.
Phishing & Smishing 2.0
How the Email/Text Trap Works
Subject line: “🚨Refund Recalculation Notice – Action Required”
Text message: “Unusual activity detected on your IRS account. Click to verify and avoid delays 👉 irs-secure.help/US-refund”
Click either link and malware or a spoofed login page appears. Once crooks have your credentials or Social Security number, they can file a fake return, reroute your refund, or open credit lines in your name.
The IRS calls out smishing by name in this year’s Dirty Dozen.
Spot the Red Flags
- The IRS never initiates contact by text, social DM, or email asking for personal info.
- Hover over links: a real IRS domain ends with irs.gov.
- Watch for urgent language (“account on hold,” “24-hour notice”).
Safe Move
Forward the message to [email protected] and then delete it. On a phone, copy the whole text and send it to 7726 (SPAM).
Vishing & Robocall Ruses
Crooks spoof the IRS caller ID and open with something like:
“This is Officer Karen Mills with the Internal Revenue Service. We have a warrant for your arrest due to unpaid back taxes. Settle now with a Target gift card or law enforcement will arrive in 30 minutes.”
Ridiculous? Yes—but panic makes smart people do desperate things. The IRS repeatedly reminds taxpayers it never demands immediate payment, accepts gift cards, or threatens arrest on the spot.
Your 15-Second Phone Defense
- Hang up—don’t engage.
- Look for a real notice in your physical mailbox; the IRS always writes first.
- If you’re worried, call the IRS directly at 800-829-1040 or check your IRS Online Account. Never dial a callback number the scammer gives you.
Identity-Theft Refund Fraud
If a thief gets your SSN and birth date, they can speed-file a fake return claiming a fat refund before you do. You learn about it weeks later when the IRS rejects your real return as a “duplicate.”
Stats to know: Identity-theft filters stopped more than $1 billion in fake refunds before they went out last year.
Beat This Scam
- File early so crooks don’t beat you to it.
- Get an IP PIN—a six-digit code issued by the IRS that locks down your account. (Apply on IRS.gov; it’s free.)
- Freeze your credit with Equifax, Experian and TransUnion if you rarely need new credit lines.
“Ghost” Tax Preparers & Other Shady Pros
A legitimate paid preparer signs your return and includes their PTIN (Preparer Tax Identification Number). Ghost preparers leave the signature blank or list “self-prepared,” so the IRS can’t trace errors—or fraud—back to them.
Red Flags When Hiring Help
- Fees based on a percentage of your refund.
- Promises of “bigger refunds than last year no matter what.”
- Refusal to share a copy of the return before filing.
Check a preparer’s credentials using the IRS public PTIN directory or your state’s licensing board.
Credit & Refund Schemes Gone Viral
Employee Retention Credit (ERC) Mills
Social-media ads claim you can shoot off a two-page form and land $26,000 per employee—even if your business thrived during the pandemic. In 2024 the IRS disallowed more than $1 billion in bad ERC claims and is still auditing thousands more.
Fake Fuel-Tax and Clean-Energy Credits
TikTok “tax-hack” videos walk viewers through made-up fuel purchases or solar installs to snag extra cash. The IRS has placed these credits under heightened review this season.
Your Move: Only claim credits you can document with receipts or payroll records. If an ad sounds too good, it almost certainly leads to penalties or even criminal charges.
Fake Charities & Disaster-Relief Scams
Every hurricane, wildfire or flood spawns dozens of pop-up “relief funds.” They copy real charity names or buy URLs that look official. The IRS warns donors to verify status in the Tax-Exempt Organization Search (TEOS) tool before giving.
The same advice applies to local drives—like the recent Texas flood scams that surfaced days after the waters rose.
Tip: Donate by credit card on the charity’s main website. Never click a random link sent by text.
Offer-in-Compromise (OIC) Mills & Debt-Relief Ads
The real OIC program lets qualifying taxpayers settle back taxes for less than they owe—but crooks advertise it as “We’ll make your $50k debt vanish for $500!” They charge thousands up front, then disappear or file shoddy paperwork you could have done yourself for $205.
Safer Path: Use the free OIC Pre-Qualifier tool on IRS.gov first. If you truly need help, hire an Enrolled Agent or tax attorney with a verifiable license, not a 1-800 infomercial.
Crypto & Investment-Return Scams
Two fast-growing angles:
- “Pay your tax bill in bitcoin for a discount.” The IRS never asks for crypto payments—full stop.
- “Move your gains offshore; no tax!” Federal law now requires exchanges to issue Form 1099-DA and wallet-by-wallet cost-basis reporting started January 1, 2025.
Fail to report and you could face stiff penalties—or criminal charges if the numbers are big enough. The IRS already mails warning letters to crypto traders whose returns don’t match exchange data, as reported just days ago.
Refund-Advance Loans & Prepaid-Card Traps
Refund-advance loans sound sweet—“Get up to $4,000 in minutes!”—but many come with steep APRs once the marketing glaze wears off. Some prepaid-card products tack on monthly fees, ATM fees, and load fees that chip away at your refund before you ever see it.
Better Ways to Get Cash Faster
- E-file and select direct deposit. Most refunds hit U.S. bank accounts in fewer than 21 days.
- Use a no-fee advance (some chains offer 0% APR). Check the small print and skip if any cost applies.
- Adjust withholding for next year so you keep more of each paycheck instead of giving Uncle Sam an interest-free loan.
High-Risk Groups in 2025
| Group | Why Scammers Target Them | Key Defense |
|---|---|---|
| Older Adults | Less familiarity with new tech scams; big pensions/retirement funds. | Freeze credit, talk through any IRS call with family first. |
| College Students | New filers aren’t sure what’s “normal.” | Remind them: IRS won’t text for bank details. |
| Gig & Side-Hustle Earners | Multiple 1099-Ks, confusion over new rules. | Use reliable software or a licensed preparer, keep mileage/expense logs. |
| Small-Business Owners | Enticed by ERC, fuel-credit mills. | Consult a CPA before claiming any trendy credit. |
Your 360° Defense Plan
- File Early: Beat fraudsters to the punch.
- Use Secure Wi-Fi: No coffee-shop e-filing.
- Enable Multi-Factor Authentication on tax software, email, and your IRS Online Account.
- Vet Preparers Thoroughly: Look up their PTIN, ask about E&O insurance, read reviews.
- Monitor Accounts: Check “Where’s My Refund?” and your credit report. Consider ID-theft services if your data was in a breach.
If a Scam Hits You
- File Form 14039 (Identity Theft Affidavit) with the IRS.
- Report to the FTC at IdentityTheft.gov.
- Freeze Your Credit immediately.
- Contact Your Bank if money moved.
- Amend Your Return (Form 1040-X) if a bogus filing went through.
Time matters—move fast, and you’ll usually get your legitimate refund back, though it can take months.
Help Lines & Handy Links
- IRS Identity Protection PIN: irs.gov/identity-theft
- Offer-in-Compromise Pre-Qualifier: irs.gov/oic
- Tax-Exempt Organization Search: irs.gov/charities-non-profits
- Report Phishing/Smishing: [email protected] | Text 7726
- TIGTA Phone Scam Hotline: 800-366-4484
- AICPA Consumer Site: 360financialliteracy.org
Final Word
Tax scams are scary, but they only win when you act in a hurry or in fear. Slow down, check the sender, and remember: the IRS will never rush you by text, email, or phone. File on your timetable, keep solid records, and share these tips with friends and family so we can all keep more of what we earn.
Now you’re ready to conquer filing season like a pro—scammers, beware.