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. Phishing and Smishing
Phishing emails and smishing text messages attempt to trick taxpayers into providing personal information by impersonating the IRS, financial institutions, or tax professionals. These messages often contain urgent language and links requesting login credentials or Social Security numbers.
2. AI-Driven Phone Scams
Advances in technology have allowed scammers to create more convincing phone calls using spoofed phone numbers and automated voices. Some callers claim to represent the IRS and demand immediate payment or request sensitive financial information.
3. Capital Gains Refund Schemes
New for 2026, the IRS is warning about fraudulent claims involving undistributed capital gains reported on Form 2439. Promoters encourage taxpayers to claim refunds tied to organizations or investment funds that they are not actually associated with. Filing these claims can lead to penalties and rejected refunds.
4. Fake Charities
Scammers often create fake charities following natural disasters or major events. Donors may believe they are supporting legitimate causes when the funds are actually being diverted to fraudulent organizations.
5. Misleading Social Media Tax Advice
Online platforms sometimes circulate tax advice encouraging taxpayers to claim credits or refunds they are not eligible for. These posts can spread quickly and lead taxpayers to file inaccurate returns.
6. Identity Theft and IRS Account Takeovers
Criminals attempt to gain access to taxpayers’ IRS online accounts using stolen personal information. Once access is obtained, they may file fraudulent returns or redirect refunds.
7. Offer-in-Compromise Mills
Some promoters aggressively market services claiming they can settle tax debts for “pennies on the dollar.” While the IRS does offer legitimate settlement programs, these promoters often charge large upfront fees without properly evaluating eligibility.
8. Fraudulent Tax Preparers
Dishonest preparers may inflate refunds by claiming false deductions or credits. In many cases, the taxpayer remains legally responsible for errors on the return.
9. Ghost Preparers
Ghost preparers prepare tax returns but refuse to sign them as the paid preparer. They may also require the taxpayer to sign the return before it is complete. This tactic allows them to avoid accountability.
10. Improper Fuel Tax Credit Claims
The fuel tax credit is designed primarily for off-highway business and farming use. Some scammers encourage taxpayers to claim credit even when they are not eligible.
11. Household Employment Tax Misuse
Promoters sometimes suggest improper ways to classify workers as household employees to avoid payroll tax obligations.
12. Abusive Tax Avoidance Schemes
These schemes involve complex arrangements designed to improperly reduce or eliminate tax liability. They may include offshore structures or artificial losses that lack economic substance.
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.