Beware of the 2025 Dirty Dozen Tax Scams: A Pittsburgh Taxpayer’s Guide to Avoiding Fraud

Tax season is in full swing, and with it comes a fresh wave of scams targeting unsuspecting taxpayers. The IRS has released its annual "Dirty Dozen" list for 2025, highlighting the most dangerous tax scams that could jeopardize your financial security. Whether you're filing your own taxes or working with a Pittsburgh tax preparer, understanding these schemes is crucial for protecting your hard-earned money.

At Pittsburgh Logos Tax and Business Solutions, we’re committed to helping local taxpayers stay informed and compliant. Let’s dive into the top scams of 2025 and how you can avoid falling victim.

1. Email Phishing & Smishing Scams

Cybercriminals are using emails (phishing) and text messages (smishing) to impersonate the IRS and other tax-related entities. These messages often claim that you owe taxes, are due a refund, or need to verify personal information. Remember: The IRS does not initiate contact via email or text.

How to Stay Safe:

• Never click on links or download attachments from unknown sources.

• Report suspicious IRS-related emails to phishing@irs.gov.

• Verify any tax-related communication by contacting the IRS directly.

2. Social Media Tax Misinformation

Bad tax advice spreads like wildfire on social media platforms, leading taxpayers to make costly mistakes. In 2025, scammers are misleading individuals into improperly claiming tax credits and deductions, often resulting in audits and penalties.

How to Stay Safe:

• Get tax advice from qualified professionals, not TikTok influencers.

• Follow reputable sources like the IRS, AICPA, and trusted Pittsburgh tax experts.

3. Fake IRS Individual Online Account Assistance

Scammers offer to "help" taxpayers set up their IRS online accounts, only to steal their personal information and file fraudulent returns in their names.

How to Stay Safe:

• Create your IRS account directly at IRS.gov.

• Never share your login credentials or sensitive tax information.

4. Bogus Charity Scams

Fake charities pop up during disasters and tax season, taking advantage of generous donors looking for deductions. These fraudsters collect donations but never use them for charitable causes.

How to Stay Safe:

• Verify a charity’s tax-exempt status using the IRS’s Tax-Exempt Organization Search.

• Avoid donating to charities that pressure you for immediate contributions.

5. False Fuel Tax Credit Claims

The Fuel Tax Credit is only for off-highway business use, like farming. However, unscrupulous tax preparers and social media scammers are encouraging taxpayers to falsely claim this credit, leading to penalties and audits.

How to Stay Safe:

• Confirm eligibility with a reputable tax professional before claiming credits.

• Avoid preparers who promise large refunds based on questionable claims.

6. Fraudulent Sick & Family Leave Credits

The credits for sick leave and family leave were available for self-employed individuals in 2020 and 2021 due to COVID-19. Some scammers continue to push these credits for 2025, even though they no longer apply.

How to Stay Safe:

• Check IRS guidelines to ensure eligibility.

• Beware of anyone encouraging you to claim expired tax credits.

7. Fake Household Employment Tax Claims

Some taxpayers are falsely claiming they paid household employees and then using fabricated wages to claim refunds based on sick and family leave wages. This is a red flag for the IRS and could lead to criminal charges.

How to Stay Safe:

• Only report actual employees and wages on your tax return.

• Keep accurate payroll records if you employ household workers.

8. Overstated Withholding Scams

Scammers are telling taxpayers to fabricate large withholding amounts on their W-2s or 1099s to generate huge refunds. The IRS quickly flags these fraudulent filings.

How to Stay Safe:

• Always use accurate tax forms from legitimate employers.

• Filing a false return can lead to fines, audits, or criminal prosecution.

9. Misleading Offers in Compromise (OIC) Promises

Some dishonest companies promise to settle tax debt for pennies on the dollar, charging high fees for services that many taxpayers don’t qualify for.

How to Stay Safe:

• Use the IRS Offer in Compromise Pre-Qualifier Tool before seeking professional help.

• Consult a reputable Pittsburgh tax professional for guidance.

10. Ghost Tax Preparers

Ghost preparers file tax returns but refuse to sign them, often making fraudulent claims to maximize refunds and disappearing when issues arise.

How to Stay Safe:

• Work with a licensed tax preparer who signs your return and provides their Preparer Tax Identification Number (PTIN).

• Avoid preparers who base fees on the size of your refund.

11. Spear Phishing Scams Targeting Tax Professionals

Cybercriminals impersonating new clients are targeting tax professionals in Pittsburgh and beyond. These scammers attempt to steal sensitive tax data through malware-infected emails.

How to Stay Safe:

• Be cautious with emails from unknown senders.

• Use multi-factor authentication and cybersecurity best practices.

12. Unethical Tax Avoidance Schemes

Fraudulent tax shelters, offshore accounts, and trust schemes promise to reduce tax liabilities but often lead to IRS scrutiny, penalties, and even jail time.

How to Stay Safe:

• Avoid any tax strategy that sounds too good to be true.

• Consult with a trusted tax professional before participating in any complex tax arrangement.

Final Thoughts

As tax scams continue to evolve, staying informed and working with reputable professionals is essential. At Pittsburgh Logos Tax and Business Solutions, we help local taxpayers navigate the tax season safely and legally. If you need assistance with your tax return or have concerns about potential scams, reach out to us today. Protecting your financial future starts with knowledge and trusted expertise.

For reliable Pittsburgh tax prep, contact us at 412-779-4308 or visit our website today!