Spotting Fraud: Identifying and Avoiding Tax Scams in 2025

The Internal Revenue Service (IRS) has consistently alerted taxpayers about the variety of scams that target them, particularly during tax season. These fraudulent schemes range from phishing emails that appear to come from legitimate sources to providing false information about tax credits and deductions. While these scams are most prevalent as the April 15 tax filing deadline approaches, they persist throughout the year as scammers continuously seek opportunities to steal money, personal information, or data.

The Increasing Issue of Misinformation on Social Media

During the 2025 tax season, incorrect tax information has notably spread via social media platforms. Sites like TikTok have become hotbeds for the dissemination of wildly inaccurate tax advice. This misinformation can mislead honest taxpayers, providing them with bad advice that could lead to serious consequences such as identity theft, unresolved tax issues, or even criminal charges if followed.

Social Media and Misleading Tax Advice

Social media platforms are often used to circulate misleading tax advice. One prominent scam involves the promotion of a non-existent “Self Employment Tax Credit,” purportedly available to self-employed individuals and gig workers as a significant financial relief for losses during the COVID-19 pandemic. Another deceptive claim involves the Employee Retention Credit, suggesting that many people qualify for tax credits and payments up to $32,000, which is generally not the case. The IRS has clarified that the credit referred to in these promotions does not exist under the name “Self-Employment Tax Credit” and is a much more limited provision related to sick and family leave, for which many do not qualify.

Be Aware of Common Tax Scams

Taxpayers should be vigilant about several common types of scams:

• Email Phishing and Smishing: These scams involve fake communications from entities posing as the IRS, state tax agencies, or tax preparation companies, sent via unsolicited emails or text messages (smishing). The goal is to lure victims into providing sensitive personal and financial information.
• Individual Online Account Setup Scams: Here, fraudsters pose as helpful third parties offering to assist taxpayers in setting up their IRS Individual Online Accounts on IRS.gov. This service is free and straightforward, and there is no need to pay someone to set it up or to share personal information.
• Fake Charities: These scams typically surge in response to crises or natural disasters. Scammers create bogus charities to solicit donations, capitalizing on public generosity. They seek money and personal information, which can be used for further fraudulent activities.

Recommendations for Safe Tax Practices

To avoid falling victim to these scams, it is crucial to obtain tax information from reliable sources such as tax professionals, the IRS, or other trusted entities. Taxpayers should avoid acting on unsolicited advice received via social media or email. Always exercise caution with personal information, never click on links in unsolicited emails or texts, and verify the legitimacy of any charity by checking if the IRS recognizes it as a qualified tax-exempt organization before making donations. This cautious approach will help protect against the financial and legal repercussions of tax-related scams.