Protect Your Wallet: 2025 Tax Scams to Watch Out For
Tax season is prime time for scammers looking to exploit unsuspecting taxpayers. Every year, they refine their tactic, making staying informed and on guard even more crucial. In 2025, new tax scams are emerging alongside the familiar ones, and knowing how to spot them can save you from severe financial headaches. Let’s dive into some of the biggest threats to watch out for—and how to protect yourself.
Watch Out for These 2025 Tax Scams
Fake IRS Account Assistance
Scammers may offer to help set up your IRS online account, but they’re really after your Social Security number and tax records.
Always set up your IRS account independently at www.irs.gov.
Never share login credentials or personal details with anyone offering assistance.
Use strong passwords and enable multi-factor authentication to protect your account.
Phishing Scams (Emails, Texts, and Calls)
Phishing scams are still rampant. Imposters are sending emails and texts and making phone calls pretending to be from representatives of the IRS or a tax preparation service.
Beware of messages claiming urgent tax issues, unexpected refunds, or asking for verification of private information.
Never click on links or download attachments from unknown sources.
The IRS does not begin contact via email, text, or social media—report any suspicious messages to phishing@irs.gov.
Fake Tax Preparers and Ghost Preparers
Not all tax preparers have your best interests in mind. Some scammers pose as professionals to steal your information or file fraudulent returns in your name. Even worse, ghost preparers complete returns but refuse to sign them, leaving you responsible for any issues.
Verify your tax preparer’s credentials through the IRS’s Federal Tax Return Preparers Directory.
Ensure your preparer has a Preparer Tax Identification Number (PTIN).
Avoid preparers who promise large refunds without reviewing your financial details.
Never sign a blank return and always request a copy for your records.
High-Income Taxpayer Scams
Scammers often target high-income individuals with fraudulent tax shelters, fake deductions, and investment schemes promising significant tax breaks.
Be cautious of unsolicited tax-saving offers that sound too good to be true.
Consult a certified and trusted tax professional before engaging in any tax-related investments.
Stay updated on IRS guidelines regarding legitimate tax deductions and credits.
Fake IRS Phone Calls
Scammers posing as IRS agents may call demanding immediate payment for supposed back taxes, often using aggressive threats.
The IRS will never call to demand immediate payment or threaten legal action.
If you receive such a call, hang up immediately and report it to 1-800-366-4484. You can also report it online to the U.S. Treasury Inspector General For Tax Administration.
Never provide financial or personal information over the phone to unknown callers.
Social Media Tax Scams
Crooks use fake IRS accounts or influencers to trick people into sharing personal tax details in exchange for fake refunds or credits.
Never share sensitive tax information on social media.
Be skeptical of tax advice from unverified sources.
Report fraudulent accounts to the IRS as mentioned above.
“You Owe Back Taxes” Schemes
Scammers send fake notices claiming you owe back taxes and must pay immediately.
Verify any tax debt by checking your official IRS account at www.irs.gov.
Be cautious of threats or urgent payment demands.
Only make payments directly to the IRS, never to third parties.
Stay One Step Ahead of 2025 Tax Scams
Scammers are getting smarter, but you can outsmart them. Always verify tax-related communications directly with the IRS. Be wary of unsolicited messages. Never share personal information with someone you didn’t contact first. These simple rules will help prevent you from falling victim to a tax scam.
Better prepare yourself for tax time by reading our recent blog article, which features essential strategies for avoiding tax-time panic.