It’s that time of year again, tax season, and if you are anything like me and most of my friends who keep saying “I need to file my taxes” all the way until April 14th, you know that day is here. Don’t worry, millions of Americans are scrambling to file their 2024 returns before tomorrow’s deadline. But while you’re busy gathering W-2s and crunching numbers, scammers are out there too getting their last-minute hustle on before the deadline as well. The Internal Revenue Service (IRS) has just rolled out its annual “Dirty Dozen” list for 2025, spotlighting the sneakiest tax scams threatening taxpayers this year. Spoiler alert: these fraudsters are getting craftier, and they’re banking on the chaos of tax season to catch you off guard.
Imagine it with me: you’re sipping your morning coffee—homebrewed with that espresso machine you bought to fight Big Coffee—when your phone lights up with a ding and a new text. Plans with your best friend for the weekend? Nope. It’s “the IRS” claiming your tax refund is “on hold” due to “unusual activity.”
Let’s face it, you got scared for a second. But then you remember… you haven’t even filed yet. Or maybe you have (overachiever). Or maybe you get an email that looks legit, promising a bigger refund if you just click a link. All your years of financial planning and hard work have paid off! Right? Wait… that doesn’t look right. You’re friends with your tax guy on social media—he’d hit you up in the DMs first.
Sound familiar? While mildly amusing and partially true, maybe it doesn’t hit when you are at your finest sipping on the highly caffeinated beauty. Maybe it comes in late at night and you check it in the early hours and in your grogginess, you click on the link. These are just a couple of the traps the IRS is warning about in 2025, and they’re more sophisticated than ever, thanks to tricks like artificial intelligence and social media misinformation. So, let’s dive into what’s lurking out there this tax season and how you can keep your money and your identity safe. This way you can tell your mawmaw about this blog and she can stay safe too.
Phishing and Smishing: The Digital Deception Game
First up on the IRS’s radar are phishing and smishing scams. First, we must address the fish in the room, phishing and smishing are more common and effective for a reason; they may not work on you, but they still work. Think of all the fraudulent emails and text messages dressed up as legit IRS notices you have seen either sent to you or posted on your favorite scam bait streamer (we aren’t the only ones who watch those all weekend are we?). Scammers are using AI to craft messages so convincing they might even include your name or address, making it tough to spot. Great, this is how the rebellion of the machines starts.
What is the bait the scammers are using? Promises of surprise refunds or threats of legal action if you don’t act fast, trying to capitalize on your haste to avoid the well dress IRS criminal investigators or get that extra comma into your bank account. The IRS is crystal clear: they never initiate contact via email or text, they are keeping the post office in business.
If you get an unsolicited message demanding payment or personal info, don’t take the bait—report it to phishing@irs.gov and delete it.
Social Media Misinformation: Bad Advice Goes Viral
Next on the menu, let’s talk about the wild west of tax tips: social media. This might be a shock, but that guy who talks about crypto on YouTube all day can’t be relied on for all your financial advice. I know he is cheaper than a financial planner, but you get what you pay for and getting free advice from YouTube shorts might not be the best strategy. Platforms like TikTok are buzzing with “lifehacks” to score a massive refund, from fake W-2 schemes (sounds like a prison sentence waiting to happen) to nonexistent credits. The IRS flagged this as a growing concern in 2025, noting that honest taxpayers who follow this advice could end up with delayed refunds, or worse, penalties. That viral video promising a secret loophole? It’s more likely a ticket to an audit than a windfall. Stick to IRS.gov or a trusted tax pros for the real deal.
Ghost Preparers and Fake Refunds: The Human Hustle
Much to our dismay, Patrick Swayzee isn’t going to come back and do our taxes with Demi Moore. This is an old-school con with a millennial twist: “ghost” tax preparers. These shady characters promise sky-high refunds, often by fudging your return, but refuse to sign the paperwork—leaving you holding the bag if the IRS comes knocking. When someone uses the phrase, “we just need to fudge the numbers,” we recommend finding someone a little more honest. Otherwise, you might end up meeting the IRS’s criminal investigators. These well-dressed and deadly accountants may feel bad if you got left holding the short end of the stick but at the end of the day, they have a job to do.
Pair that with pushing false claims like the Fuel Tax Credit. Spoiler alert: most people don’t qualify for this one. The Fuel Tax Credit is a legit break—but it’s meant for businesses or individuals using fuel for off-highway purposes, like farming or construction, not your daily commute or that road trip to grandma’s house. Scammers know it’s obscure, so they dangle it as a “hidden gem” to inflate your refund, pocketing a fat fee while you’re left with a return that’s basically a ticking time bomb.
And it’s not just the Fuel Tax Credit—some preparers are cooking up entirely fake deductions or credits, claiming you can write off your dog as a “security expense” or invent charitable donations you never made. The result? You might see a bigger refund at first, but when the IRS catches wind—and they will—you’re the one stuck paying back the difference, plus penalties and interest. Pair that with a ghost preparer who vanishes when the heat’s on, and you’ve got a recipe for financial disaster.
The fix? Vet your tax preparer like you’d vet a contractor for your house. First, check for a valid Preparer Tax Identification Number (PTIN), it’s a must-have for anyone preparing taxes for a fee, and the IRS requires them to include it on your return. No PTIN? Run. You can even look them up on the IRS’s online directory of credentialed preparers for extra peace of mind. Second, ask questions: Are they signing your return? Do their promises sound too good to be true? If they’re dodging accountability or pushing sketchy “guaranteed” refunds, steer clear. A true professional will explain what you qualify for—without the smoke and mirrors. And if you’re tempted by a deal that seems miraculous, remember: the only miracle here is how fast these scammers disappear when the IRS starts asking questions.
Finally, We Have Cryptocurrencies:
Cryptocurrencies are more than many understand. That includes our nephew Dustin, who just keeps yelling “Blockchain” at every Thanksgiving since 2021. As if phishing emails and ghost preparers weren’t enough, this tax filing season saw a surge in cryptocurrency scams that hit taxpayers right where it hurts, their wallets, or more accurately their crypto wallets. With the IRS cracking down on crypto reporting, every filer had to answer that “digital asset” question on their 2024 returns scammers seized the opportunity to exploit the confusion.
What is one standout scheme we’ve seen? Fake IRS notices claim that you owe taxes on unreported crypto, payable only in Bitcoin or Ethereum. We had to explain irony to the intern writing this, but hopefully you all see the irony of paying a “tax debt on crypto” in crypto. The IRS doesn’t accept crypto payments directly, so if you got a text demanding digital coins to “settle your tax debt,” it was a scam.
So, what is the takeaway from all this nerd ranting? If someone’s pressuring you to pay taxes or unlock refunds with crypto, hit the pause button. Grab your favorite search engine and check out the IRS website. The IRS only deals in U.S. dollars for payments, and they won’t cold-call you about your Bitcoin stash.
Please, double-check any crypto-related tax claims on IRS.gov, and if you smell something funny, maybe it’s laundry day or maybe that person promising a 2000% higher tax return is a little rotten. We recommend you report it to the Internet Crime Complaint Center (IC3). Tax season’s stressful enough without handing your crypto to a con artist.
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