Each year, the IRS releases its “Dirty Dozen” list—a roundup of the most common and dangerous tax scams targeting individuals and businesses. These schemes are designed to steal personal information, money, or both, and they often spike during tax season. Staying informed is your first defense.
Here’s a look at some of the most common scams on the list:
1. Phishing Scams
Fake emails, texts, or websites pretending to be the IRS aim to trick you into providing sensitive information. The IRS will never contact you by email or text asking for personal data.
2. Employee Retention Credit (ERC) Fraud
Promoters aggressively push ineligible businesses to claim the ERC, often charging large upfront fees. Only qualified businesses should apply, using IRS guidelines.
3. Fake Charities
Scammers create bogus charities, especially after natural disasters or crises. Always verify a charity’s legitimacy before donating.
4. Social Media Scams
Fraudsters use social platforms to share misleading tax advice or gather personal information through fake profiles.
5. Spear Phishing for Tax Pros
Tax professionals are targeted with emails designed to gain access to client data and IRS e-Services accounts.
6. Offer in Compromise Mills
Companies mislead taxpayers into thinking they qualify for IRS debt relief programs when they don’t, often charging high fees for little to no help.
7. Ghost Preparers
These are dishonest tax preparers who refuse to sign returns, leaving taxpayers liable for errors or fraud.
8. Identity Theft
Criminals use stolen personal information to file fake tax returns and claim refunds. Protect your Social Security number and file early.
9. Fake Communications via Phone Calls
Scammers impersonate IRS agents, threatening arrest or legal action to scare victims into paying fake tax bills.
10. Fuel Tax Credit Scams
This credit is only available for off-highway business use, yet promoters falsely promise big refunds by claiming it for ineligible taxpayers.
11. Tax Advice on Social Media
Some viral tax “hacks” are illegal or misleading, such as making false claims to receive larger refunds. Always rely on verified tax professionals.
12. Schemes Involving International Tax Avoidance
These often involve hiding income in offshore accounts or using foreign trusts—strategies that can result in serious legal consequences.