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2025 IRS Scam Alerts: How to Safeguard Your Finances
Let’s lay it on the line:
Scammers have doubled down on their efforts.
They’ve become more sophisticated, operating at alarming speeds, with AI now enabling them to convincingly imitate voices, emails, and even your trusted tax advisor's communication style.
The IRS has taken notice. Annually, they compile a list—a warning, dubbed the Dirty Dozen, detailing the most perilous scams targeting the unwary taxpayer.
We view it as your annual cautionary notice.
Here’s what you need to be vigilant about in 2025, ensuring you and your loved ones stay safe from these schemes.
Why Vigilance is Crucial (Even for the Tech-Savvy)
Thinking, This won’t happen to me? Think again.
Scams are transforming rapidly to bypass even the most seasoned instincts.
They're not just deceiving you—they're manipulating you. AI enhances the plausibility of the scam, while technology complicates its traceability. Notably, the IRS will never initiate contact via phone, email, or text out of the blue.
So, this information is crucial—for you, your family, and that acquaintance still using "123456" as their password.
The 2025 Dirty Dozen: Top Tax Scams
1. AI-Driven Phishing Schemes
The most alarming innovation of the year?
Scammers leveraging AI to craft emails and texts that mimic those sent by the IRS, your tax software, or even your accountant to perfection.
These messages feature authentic-looking logos, personal information, and clickable “portals,” all accompanied by an urgency designed to prompt rash decisions.
Action:
Never click on links in unsolicited IRS contact. The IRS does not use email or text for initial contact. Always verify directly through IRS.gov or consult your tax advisor.
2. Fraudulent Social Media “Refund Aid” Ads
As you scroll through Instagram, a sponsored ad claims:
“Score a $10K refund—even if you haven’t filed taxes!”
Sounds too good to be true? It is.
These temporary services file bogus returns on your behalf. While you might receive money initially, the IRS demands it back (plus penalties) once fraudulent records are discovered.
Action:
Engage solely with licensed, verifiable tax professionals. If your refund promise seems disproportionately large, ask questions.
3. Offer in Compromise Exploitation
The Offer in Compromise is a valid IRS initiative tailored to help taxpayers who owe significant amounts but can’t pay in full settle their debt for less.
However, unscrupulous companies exploit this by guaranteeing debt forgiveness, demanding upfront fees, and disappearing.
Action:
If indebted to the IRS, consult with a tax professional who understands your full financial picture—not a faceless call center sourcing your data from debt lists.
4. Counterfeit Charities
In times of disaster, when headlines break, expect “charities” to start soliciting donations via email, text, or crowdfunding platforms such as GoFundMe.
While some charities are legitimate, many are sophisticated fakes.
Action:
Before donating, verify the charity’s legitimacy through the IRS Tax-Exempt Organization Search. Genuine charities won’t ask for donations in gift cards or cryptocurrency.
5. Persistent ERC Schemes
Even in 2025, scammers continue to promote counterfeit Employee Retention Credit claims, causing trouble for business owners.
These ERC “mills” file erroneous claims on your behalf. Though money might initially flow, the IRS inevitably requests repayment with accrued interest.
Action:
If qualification is assured without reviewing your records, walk away immediately.
6. Targeted Tax Professional Phishing
This scheme zeroes in on tax professionals.
Posing as IRS affiliates, hackers use this platform to access extensive client files with just one wrong click.
Action:
Inquire about the security measures your tax preparer employs. You have a right to understand how they protect your information.
7. Erroneous Tax Tips on Social Media
“Sidestep taxes by setting up an LLC and deducting everything.”
This here isn’t advice; it’s a lure.
It has led numerous young taxpayers into audits and penalties.
Action:
Authenticate your sources. Merely having a platform and microphone doesn’t equate to tax expertise.
8. Rogue Tax Preparers
Beware of “professionals” who prepare your tax return but refuse to endorse it.
This surreptitious behavior is due to the illegality of their actions. They manipulate figures, boost credits, and disappear when the IRS scrutinizes.
Action:
Ensure your preparer signs the return and supplies their PTIN (Preparer Tax Identification Number). Without these identifiers, consider it a warning sign.
Final Insight: Maintain Caution and Skepticism
Remaining vigilant doesn’t equate to living in fear—it means being informed.
Encouragingly, scammers thrive on secrecy.
Spread this information generously to diminish their chances of success.
Protect You and Yours:
Dispense this article to those who might be susceptible (think older relatives).
Activate multi-factor authentication for all financial accounts.
Inquire how your tax advisor validates identities and safeguards data.
Report dubious activities to the IRS via andFTC.gov.
Above all, always stop and verify before clicking, paying, or sharing personal data.
Need a Professional Review?
At GeneralCents Accounting, we excel in reviewing, filing, and fortifying against scams—this isn’t your burden, it’s ours.
Let’s discuss strategy prior to encountering that next phishing attempt.
Reach out to our office to arrange a strategy session.