Each year the IRS releases its “Dirty Dozen” list to highlight the most common tax scams affecting individuals, businesses, and organizations. The list is designed to raise awareness and help taxpayers recognize suspicious activity before it results in financial harm or compliance issues.
For 2026, the IRS added a new scam involving fraudulent capital gains refund claims while continuing to warn taxpayers about several recurring threats.
Below is a closer look at the scams included in this year’s list.
1. IRS impersonation by email and text (phishing and smishing)
Scammers send emails, direct messages, and texts that appear to come from the IRS. These messages often use alarming language, QR codes, fake IRS websites, or refund-related prompts to pressure taxpayers into “verifying” accounts or entering personal information. Do not select links or open attachments in unexpected IRS-related messages, and report suspicious emails, direct messages, and texts to the IRS.
2. AI-enabled IRS impersonation by phone
Phone scams continue to evolve through robocalls, computer-generated voices, voice mimicry, and spoofed caller ID. The IRS generally contacts taxpayers by mail first and does not leave urgent, threatening prerecorded messages, demand immediate payment by phone, or threaten arrest. Taxpayers should also be cautious about relying on AI-generated responses for complex tax questions without verification.
3. Fake charities
Fraudsters often take advantage of disasters, tragedies, and community generosity by creating fake charities that collect donations and personal information. Before giving, confirm that the organization is recognized by the IRS as a qualified tax-exempt organization. Charitable deductions generally apply only when donations go to qualified organizations and the taxpayer itemizes deductions.
4. Misleading tax advice on social media
Viral “tax hacks” can encourage taxpayers to claim credits, refunds, or deductions they do not qualify for. Filing a return with false information can trigger refund delays, audits, penalties, or more serious consequences. Taxpayers should rely on IRS guidance, qualified tax professionals, and reputable sources rather than social media promotions.
5. Identity theft involving IRS Online Account access
Criminals may use stolen personal information to gain unauthorized access to a taxpayer’s IRS Online Account. Others may pose as helpers during account setup to collect sensitive details. Taxpayers should create and access accounts directly through IRS.gov and avoid unsolicited third parties offering assistance.
6. Abusive undistributed long-term capital gains claims
The IRS has identified abuse involving Form 2439, which allows shareholders of certain investment funds or real estate investment trusts to claim a refundable credit for taxes paid on undistributed capital gains. Schemes may involve overstated or fabricated claims, including claims tied to organizations that are not legitimate investment funds or real estate investment trusts. Improper claims can lead to refund delays, audits, penalties, or enforcement action.
7. Bogus “Self-Employment Tax Credit” promotions
Scammers promote a broad, misleading “self-employment tax credit” to encourage inaccurate filings and improper refund claims. Many taxpayers do not qualify for credits marketed under this type of promotion, and the IRS is closely reviewing claims. Eligibility should be evaluated with trusted guidance rather than social media ads or aggressive refund promises.
8. Ghost preparers
A ghost preparer prepares a tax return but refuses to sign it or include a valid Preparer Tax Identification Number. That is a significant red flag because the taxpayer remains legally responsible for the return. Taxpayers should never sign a blank or incomplete return and should work only with reputable preparers who sign the return as required.
9. Non-cash charitable contribution schemes
Some schemes involve inflated appraisals of donated property, including arrangements tied to syndicated conservation easements or art. Promoters may promise to eliminate or substantially reduce tax liability. The IRS warns taxpayers not to file returns with made-up information and may hold refunds while it verifies claims.
10. Overstated withholding schemes
Scammers encourage taxpayers to inflate withholding amounts or report fabricated wage and withholding data to manufacture larger refunds. Variations may involve Forms W-2, W-2G, 1099-R, 1099-NEC, 1099-DIV, 1099-OID, 1099-B, Schedule K-1 withholding, Alaska Permanent Fund Dividend claims, or unspecified withholding credits. The IRS may delay processing while it verifies wages and withholding against third-party records, and inaccurate claims can lead to penalties and enforcement action.
11. Spear-phishing and malware campaigns targeting tax professionals
Tax professionals and businesses remain targets of “new client,” “document request,” and other phishing emails designed to deliver malicious links or attachments. These campaigns can expose client data or provide access to systems. Warning signs include unexpected requests for sensitive information, unfamiliar sender addresses, urgent payment demands, and links that do not clearly originate from IRS.gov.
12. Aggressive or misleading Offer in Compromise marketing
The IRS Offer in Compromise program can help certain eligible taxpayers resolve tax debt when they cannot pay in full. However, “OIC mills” often overpromise results, charge high fees, and pressure taxpayers who may not qualify. Taxpayers can use free IRS tools to check basic eligibility before responding to high-pressure marketing.
Staying Vigilant During Tax Season
Tax scams continue to evolve as fraudsters attempt to exploit confusion around tax rules and filing deadlines. Awareness is one of the most effective ways to avoid becoming a victim.
Taxpayers should be cautious when receiving unsolicited communications related to taxes, refunds, or financial information. Verifying information before acting and working with qualified tax professionals can help reduce the risk of fraud. The IRS will never initiate contact with taxpayers through text messages, social media, or phone calls requesting immediate payment or sensitive personal information. Official IRS communication typically begins through mailed correspondence, and taxpayers are not asked to provide confidential details through unsolicited digital channels. Being aware of these warning signs can help protect your personal and financial information from fraudulent activity.
Remaining informed about common scams helps ensure tax filings remain accurate, compliant, and secure. If you have questions about tax filings, add assistance setting up ID PIN), suspicious tax advice, or potential scam activity, our team is here to help you navigate the situation and ensure your tax reporting remains accurate and compliant. Reach out to start the conversation.