The IRS is warning tax professionals about a rising “phony new client” scam, where fraudsters pose as potential clients and send malicious attachments to gain access to sensitive financial data. By recognizing red flags and following strong cybersecurity practices, firms can protect themselves and their clients from costly data breaches and fraud.

Ghost tax preparers don’t sign returns or include a PTIN, avoiding accountability. This can leave you exposed to IRS audits, penalties, and fraud risks. Always work with a verified professional who signs your return and stands behind their work.

Misleading “pennies on the dollar” claims often exaggerate the IRS Offer in Compromise program. While it can reduce tax debt, strict qualifications mean most taxpayers don’t qualify, making it essential to spot red flags and seek trusted advice before applying.

If you’ve seen advice about claiming household employee credits for people who don’t exist, beware—this is one of the IRS Dirty Dozen scams. Filing false Schedule H information to generate refunds is considered tax fraud and can lead to penalties, audits, and worse.