IRS Warns of Taxpayer Scams that Can Lead to Filing Fraudulent Returns in 2025 “Dirty Dozen” List

Each year, the Internal Revenue Service (IRS) publishes a list of tax scams that can cause unsuspecting taxpayers to file fraudulent returns. The IRS refers to these scams as the “Dirty Dozen.” In this article, Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, highlights some of the top concerns from the IRS’ “Dirty Dozen” list for 2025.

7 Key Concerns for U.S. Taxpayers from the IRS’ 2025 “Dirty Dozen” List

While the IRS’ “Dirty Dozen” list identifies numerous issues of which taxpayers need to be aware, the following are seven key concerns that can lead to taxpayers unknowingly submitting fraudulent returns:

1. Bad Social Media Advice

The IRS describes inaccurate and misleading tax advice on social media as a “growing concern in 2025.” It specifically calls out TikTok, “where people share wildly inaccurate tax advice” with their followers.

2. Fake Charities

The IRS also warns about fake charities being promoted online. While taxpayers can generally deduct contributions made to qualifying tax-exempt charitable organizations, those who fall victim to fake charity schemes are not eligible to use their donations to reduce their taxable income.

3. False Fuel Tax Credit Claims

In another social media-related concern, the IRS warns of scams encouraging taxpayers to claim the federal Fuel Tax Credit to reduce their income tax liability. As the IRS explains, the Fuel Tax Credit “is meant for off-highway business and farming use and is not available to most taxpayers.”

4. False Credits for Sick and Family Leave

The Credits for Sick and Family Leave were pandemic-era credits offered to qualifying self-employed individuals for the 2020 and 2021 tax years. However, the IRS warns that online promoters are encouraging self-employed individuals to claim these credits for later years and encouraging employees to claim these credits even though they don’t qualify.

5. Bogus “Self-Employment Tax Credit”

The IRS is also warning about scams promoting a bogus “Self-Employment Tax Credit.” No such credit exists, and claiming this non-existent credit is highly likely to trigger an IRS audit.

6. Improper Household Employment Tax Refunds

Another recently promoted scam involves falsely claiming to have paid wages to a non-existent household employee. This is a clear form of tax fraud that can expose taxpayers to both civil and criminal penalties.

7. Overstated Income and Withholdings

Overstating income and income tax withholdings can expose taxpayers to both civil and criminal penalties as well. As the IRS explains, “[t]his is a recent scheme circulating on social media encouraging people to fill out Form W-2, Wage and Tax Statement, or other forms like Form 1099-NEC and other 1099s with false income and withholding information,” with the goal of obtaining a substantial fraudulent refund.

Contact Virginia Tax Lawyer Kevin E. Thorn Today

For taxpayers who have filed fraudulent returns with the IRS, taking corrective action promptly can be critical for avoiding unnecessary consequences. If you would like to discuss your situation with Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, please call 703-752-3752 or contact us online to arrange a confidential consultation.