Don’t Fall for Tax Tricks
Are tax scams really still a thing in 2025?
You’d be surprised.
Scammers are finding new ways to pose as the IRS, and with artificial intelligence making emails, websites, and phone calls sound more convincing than ever, it’s harder to tell what’s real.
That’s why the IRS updates its “Dirty Dozen” list every year a heads-up to help small business owners, families, and tax professionals spot the most dangerous frauds before they strike.
Here’s a practical look at this year’s top scams, why they matter, and how to protect yourself and your small business from becoming a target.
Why This Still Matters
You might be thinking, “I never click weird links. This doesn’t apply to me.”
But modern scams aren’t always obvious. Many now use personal data sometimes pulled from old breaches, social media, or public filings to create messages that feel real. Some even use AI to mimic your accountant’s tone or your software’s interface.
One misplaced click could expose your bank accounts, tax ID, or client information.
Whether you do your own bookkeeping or work with a tax pro, knowing what to watch for is one of the smartest things you can do this year.
The Worst Scams to Watch For in 2025
1. AI-Powered Phishing Emails
These emails look like they’re from the IRS, your accounting software, or even your bookkeeper.
They use:
- Real IRS logos
- Fake client account updates
- Requests for login credentials or payment info
What to do: Never click links or download attachments from unsolicited emails about taxes. Go directly to IRS.gov or call your trusted advisor.
2. “Fast Refund” Ads on Social Media
If you’re seeing Instagram posts or YouTube videos offering guaranteed refunds, especially if you don’t need to file, run the other way.
Scammers will file fake returns in your name, and when the IRS catches it, you’re on the hook.
What to do: Stick with verified tax pros who explain what they’re doing. If a refund seems too big to be true, it probably is.
3. Ghost Tax Preparers
They’ll prep your return but refuse to sign it. Why? Because they’re lying on it. That means if anything goes wrong, you’re the one in trouble.
What to do: Always check for a PTIN (Preparer Tax Identification Number) on your return. If the person who did your taxes won’t sign it, walk away.
4. Offer in Compromise Scams
An Offer in Compromise can help taxpayers settle IRS debts but only if you actually qualify.
Some shady companies advertise “guaranteed forgiveness” and charge big upfront fees. They disappear after cashing your check.
What to do: Only trust firms that offer personalized tax strategy, not one-size-fits-all solutions.
5. ERC Mills Still Rolling
The Employee Retention Credit was designed to help businesses through COVID. But some companies are still pushing false ERC filings for businesses that don’t qualify and they’re dragging owners into audits.
What to do: If someone promises you’ll qualify without reviewing your payroll records, run.
6. Fake Charities
After natural disasters or tragic events, donation requests spike. Some are real. Many aren’t.
What to do: Before you donate, check the IRS Tax Exempt Search Tool to make sure the organization is legit.
7. Fraudulent Fuel Tax Credits
Scammers promise a refund on gas expenses even if you don’t qualify.
This credit is strictly for off highway business use (farmers, construction equipment not your daily commute).
What to do: Unless you operate heavy machinery, skip this one. The IRS tracks this tightly.
8. Fake IRS Calls
“Agent Johnson from the IRS” calls and says you’re going to jail unless you pay immediately usually via wire or gift card.
Still happening. Still fake.
What to do: The IRS never threatens over the phone. Hang up and report the call to the Treasury Inspector General for Tax Administration.
9. Bogus Business Deductions
TikTok videos and online “experts” will tell you to start an LLC, buy a car, and write off everything.
Spoiler: That’s not how it works.
What to do: Follow accurate accounting practices. If it isn’t tied to income production, it probably doesn’t qualify as a deduction.
10. Identity Theft Through Tax Software
Some fraudsters are hacking low-security tax software accounts to file returns before you do.
What to do:
- File early
- Use multi-factor authentication
- Request an Identity Protection PIN (IP PIN) through the IRS
How to Protect Yourself
Here are a few simple ways to guard your business and your peace of mind:
- Use strong passwords for tax-related accounts. No pet names or birthdates.
- Enable 2-factor authentication on any software storing financial info.
- Verify before trusting. If something feels off, it probably is.
- Work with a real person. If you can’t ask questions or get a callback, it’s not worth the risk.
What This Means for Small Businesses in Colorado
As a bookkeeping service based in Littleton and serving clients across Colorado, we see firsthand how easy it is to miss red flags when you’re focused on running your business.
At Perlinger Consulting, we specialize in accurate accounting, QuickBooks training, and accounts payable automation, all designed to keep your financial systems secure and stress-free.
And yes, that includes helping clients avoid scams like these.
Why Trust Matters More Than Ever
There are thousands of bookkeeping services out there.
What sets us apart is simple: we’re hands on, we’re local, and we treat your books like they’re our own. Whether you need QuickBooks training, bookkeeping for small business, or a full accounting system clean-up, we’re here to walk you through it.
Want a second set of eyes on your books?
Let’s make sure everything looks right and nothing feels off.
Resources:
Final Word: Don’t Get Fooled
Scammers are clever. But your awareness is your best defense.
This year, keep your eyes open and your records protected. And if something smells fishy, trust your gut—and your bookkeeper.
Disclaimer: This blog is meant for educational purposes only. Articles contain general information about accounting and tax matters and is not tax advice and should not be treated as such. Do not rely on information from this website as an alternative to seeking assistance from a certified tax professional, experienced accountant or bookkeeper.
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July 25, 2025 at 1:13 pmDon’t let scammers take your hard earned cash!