Common Tax Scams to Avoid in 2025

Tax season is stressful enough without worrying about scammers trying to steal your money or identity. Unfortunately, every year, fraudsters come up with new and creative ways to take advantage of unsuspecting taxpayers. And in 2025, with more people filing online and AI tools making scams harder to detect, it’s more important than ever to stay informed and cautious.

Whether you’re an individual filer, freelancer, or small business owner, knowing the most common tax scams—and how to avoid them—can save you time, money, and serious headaches. Here’s what to watch out for in 2025.

1) Fake IRS Phone Calls (“Phantom Tax Collection”)

The scam: You receive a call from someone claiming to be from the IRS or “Tax Bureau.” The caller says you owe taxes and threatens you with arrest, deportation, or a suspended license if you don’t pay immediately—often using gift cards, wire transfers, or cryptocurrency.

What’s new in 2025: Scammers are now using AI-generated voice clones that sound like actual IRS agents or even family members to pressure you into paying. They may spoof legitimate phone numbers and use personal details to appear convincing.

How to protect yourself:

  • The IRS will never call you out of the blue demanding immediate payment.
  • They will never ask for payment via gift cards or cryptocurrency.
  • Hang up and call the IRS directly at 1-800-829-1040 to confirm if you really owe anything.

2) Email and Phishing Scams

The scam: You get an email that looks like it’s from the IRS or a tax software provider, asking you to verify your information, log in to your account, or download an “important document.”

What’s new in 2025: These phishing emails are more sophisticated than ever, with AI-generated content that mimics official language and design. Some even use malicious PDF attachments or QR codes that lead to fake login pages.

How to protect yourself:

  • The IRS will never contact you by email to request personal or financial information.
  • Don’t click on links or open attachments in unsolicited emails.
  • Always go directly to the official website (like irs.gov) if you need to log in.

3) Fake Tax Preparer Scams

The scam: A “tax professional” offers to file your taxes for an incredibly low fee—or even promises a big refund. But instead of helping, they file a fraudulent return in your name or steal your refund outright.

What’s new in 2025: Scammers now create convincing fake websites and social media profiles that mimic real accounting firms. They may also pose as mobile or pop-up tax services in underserved communities.

How to protect yourself:

  • Always verify your preparer’s credentials. Look for a Preparer Tax Identification Number (PTIN).
  • Use reputable tax professionals who are CPAs, Enrolled Agents, or listed in the IRS directory.
  • Never sign a blank return, and always review your tax return before filing.

4) “Too-Good-to-Be-True” Refund Promises

The scam: Someone promises they can get you a larger tax refund than anyone else—often by inflating deductions, inventing expenses, or creating fake dependents.

What’s new in 2025: Some fraudsters are now using AI tools to generate fake documents and manipulate tax data to make filings look legitimate.

How to protect yourself:

  • Remember, you are responsible for everything on your return, even if someone else prepares it.
  • Avoid preparers who claim they can guarantee large refunds or base their fee on a percentage of your refund.
  • Always ask for a copy of your return and review it carefully.

5) Identity Theft and Stolen Refunds

The scam: A criminal uses your Social Security number (SSN) to file a fake return and collect a refund before you do.

What’s new in 2025: Data breaches and AI-powered hacking tools make it easier for scammers to steal your information. Some even use leaked biometric data to bypass two-factor authentication.

How to protect yourself:

  • File your taxes early to beat scammers to the punch.
  • Sign up for an Identity Protection PIN (IP PIN) from the IRS.
  • Monitor your credit and tax records for suspicious activity.

 

6) Cryptocurrency Tax Scams

The scam: As crypto trading becomes more common, so do scams targeting digital asset holders. Some scams claim to help you “hide” or underreport crypto earnings; others involve fake tax letters demanding payment on unreported crypto income.

What’s new in 2025: Scammers are sending fake IRS “CP2000” notices by mail and email, targeting those who’ve recently bought or sold crypto on major exchanges.

How to protect yourself:

  • Report all crypto transactions accurately; the IRS is paying close attention to this.
  • Don’t respond to unofficial-looking tax letters. Contact the IRS directly to verify.

Use trusted crypto tax software or a tax professional who understands digital assets.

7) Charity Scams and Fake Organizations

The scam: Scammers set up fake charities that mimic real ones and use them to solicit donations during tax season. They may promise a big deduction or use emotional appeals tied to recent disasters or causes.

What’s new in 2025: Fraudulent charities now run targeted social media ads and accept donations through payment apps, making them harder to spot.

How to protect yourself:

  • Verify the charity through the IRS’s Tax Exempt Organization Search tool.
  • Never donate to unknown groups through email or social media links.
  • Get a proper receipt and ensure the charity is eligible for tax-deductible donations.

8) Social Media Tax “Hacks” and Misinformation

The scam: Social media is full of viral videos and “financial influencers” promoting shady tax strategies like writing off your entire wardrobe, turning your kids into employees, or filing as a fake business.

What’s new in 2025: AI-generated videos are spreading misleading or outright fraudulent tax tips faster than ever, often targeting gig workers and young entrepreneurs.

How to protect yourself:

  • If it sounds too good to be true, it probably is.
  • Check tax advice with a licensed professional or the IRS before acting on it.
  • Don’t share your tax documents or personal info with strangers online.

Final Tips to Stay Safe During Tax Season

  • Keep your software updated: Use antivirus tools and secure, up-to-date tax software.
  • Use strong passwords: Enable two-factor authentication wherever possible.
  • Shred documents: Don’t just toss sensitive papers in the trash.
  • Be skeptical: If you’re pressured to act immediately, it’s probably a scam.

Conclusion

Scammers are constantly evolving, and 2025 is shaping up to be another active year for tax fraud. But the good news is, with a little awareness and caution, you can avoid becoming a victim. Stay skeptical of anyone asking for money or personal info, file early if you can, and when in doubt, contact the IRS directly.

Taxes might be unavoidable—but getting scammed is not.

Have you encountered a suspicious tax-related message or phone call this year? Share your experience in the comments to help others stay alert!