- March 18, 2026
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Michael E. Helton, CPA
Each year, the Internal Revenue Service (IRS) releases its “Dirty Dozen” list of tax scams to warn taxpayers and businesses about emerging threats. Part of the Security Summit initiative, the list is designed to help protect taxpayer data and reduce identity theft.
The 2026 list highlights a range of evolving schemes, from phishing attacks and identity theft to misleading tax advice on social media. A notable update this year is the addition of abusive undistributed long-term capital gains claims as item #6, replacing prior fuel tax credit concerns, after the IRS identified an increase in overstated or fabricated claims tied to Form 2439. While the tactics may change, the goal stays the same: to steal money, personal information, or tax refunds. Understanding these warnings can help individuals and organizations recognize red flags and avoid costly mistakes during filing season and throughout the year.
The 12 Scams the IRS Advises Taxpayers to Watch for:
1. IRS Impersonation by Email or Text (Phishing and Smishing)
Scammers send emails, text messages, or direct messages that appear to come from the IRS. These messages often contain alarming language or QR codes directing recipients to fake websites designed to collect personal information or financial data.
To protect yourself, do not click links or open attachments from unexpected messages claiming to be from the agency.
2. AI-Enabled IRS Impersonation by Phone
Phone scams continue to evolve, including robocalls or calls using AI-generated voice technology to impersonate IRS representatives. Caller ID spoofing can make the call appear legitimate.
The IRS generally contacts taxpayers by mail first and does not demand immediate payment or threaten arrest during phone calls.
3. Fake Charities
Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations or personal information.
Charitable donations are only deductible if they are made to a qualified tax-exempt organization recognized by the IRS.
4. Misleading Tax Advice on Social Media
Viral “tax hacks” circulating online can encourage taxpayers to claim credits or deductions they do not qualify for.
Filing returns based on misleading advice can result in refund delays, audits, penalties, or potential enforcement action.
5. Identity Theft Involving IRS Online Accounts
Criminals may attempt to use stolen personal information to access a taxpayer’s IRS Online Account, which allows individuals to view tax records and manage certain filings.
Be sure to create accounts directly through IRS.gov and avoid unsolicited third parties offering assistance with account setup.
6. Abusive Undistributed Long-Term Capital Gains Claims
A new addition to the 2026 list involves increased abuse of Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains.
The IRS has identified cases in which taxpayers submit overstated or fabricated claims, including those tied to organizations that are not legitimate investment funds or real estate trusts.
Improper claims may lead to refund delays, audits, penalties, or enforcement action. Taxpayers should be cautious of any Form 2439 claim tied to an unfamiliar entity or an unexpectedly large refund and should verify the form with a trusted tax advisor before filing.
7. Bogus “Self-Employment Tax Credit” Promotions
Some promoters advertise a broad “self-employment tax credit” that promises large refunds.
Taxpayers do not qualify for these credits, and claims based on misleading promotions may result in penalties or additional IRS review.
8. Ghost Tax Preparers
A “ghost preparer” prepares a tax return for a fee but refuses to sign it or provide a Preparer Tax Identification Number (PTIN). These preparers may promise larger refunds, demand cash, or direct refunds to accounts they control—while leaving the taxpayer fully responsible for any fraudulent claims, errors, or penalties.
By law, paid tax preparers must have a valid PTIN, sign the returns they prepare, and include that PTIN on the return.
9. Non-Cash Charitable Contribution Schemes
Some schemes involve inflated appraisals of donated property, including art or conservation easements, with promoters claiming the donation can eliminate most or all of a taxpayer’s tax liability.
Taxpayers should not file returns with exaggerated or unsupported valuations.
10. Overstated Withholding Schemes
In this scheme, scammers encourage taxpayers to inflate withholding amounts on tax forms to generate a larger refund.
The IRS compares reported withholding amounts with third-party records and may delay refunds while verifying the information. Improper claims can lead to penalties or enforcement action. To avoid problems, taxpayers should report only withholding amounts shown on valid tax documents and should verify any questionable advice with a trusted tax advisor before filing.
11. Spear-Phishing and Malware Targeting Tax Professionals
Accounting firms, businesses, and tax professionals remain frequent targets of cyberattacks. These scams often begin with a highly convincing email that appears to be a new client inquiry, a document request, or a follow-up from someone the recipient thinks they recognize.
The goal is to get the recipient to click a harmful link, open an infected attachment, or provide sensitive information. That can give a scammer access to client data, email accounts, or internal systems, and in some cases, install malware on the organization’s network. Businesses and tax professionals can help reduce this risk by verifying unexpected requests, avoiding suspicious links and attachments, and training employees to recognize phishing attempts.
12. Aggressive Offer in Compromise Marketing
The IRS Offer in Compromise (OIC) program allows certain taxpayers to settle tax debts for less than the full amount owed.
However, some companies aggressively market these services and charge significant fees to taxpayers who ultimately do not qualify. The IRS recommends checking eligibility using free IRS tools before paying for assistance.
How to Protect Yourself
The IRS encourages taxpayers and organizations to remain cautious when receiving unexpected communications or tax-related requests. Key precautions include:
- Do not click unexpected links or open attachments, and hang up on suspicious calls claiming to be from the IRS or another organization requesting payment or personal information.
- If you receive a call, text, or email from an entity you recognize, go directly to the source by using a verified phone number or website you know is legitimate rather than the contact information or links provided in the message.
- Be cautious about tax advice, refund promises, or credit promotions shared on social media or by third parties, and verify information through trusted sources.
- Use reputable organizations and professionals, including qualified charities and tax preparers who sign returns and include a valid PTIN.
- If you were scammed, suspect tax fraud, or believe your information was stolen, report it to the IRS promptly.
The Bottom Line
A cautious approach, strong internal processes, and trusted professional guidance can help reduce risk before a bad situation becomes costly. RGCO works closely with businesses and organizations to navigate tax compliance, strengthen financial safeguards, and address complex reporting requirements. If questions arise about suspicious tax-related activity or filing obligations, our tax team is available to help evaluate the situation and discuss appropriate next steps.
Frequently Asked Questions
What is the IRS Dirty Dozen list?
The IRS Dirty Dozen is an annual list of common tax scams and fraud schemes identified by the IRS each year. It is designed to help taxpayers, businesses, and tax professionals recognize red flags and avoid costly mistakes.
Does the IRS contact taxpayers by phone, text, or email?
The IRS generally initiates contact by mail, not by phone, text, or email. Unexpected messages demanding payment, threatening arrest, or asking taxpayers to click a link should be treated with caution.
What should I do if I receive a suspicious IRS email, text, or phone call?
Do not click links, open attachments, or provide personal information. If the message appears to come from an organization you recognize, contact that organization directly using a verified phone number or website you know is legitimate.
What is a ghost tax preparer?
A ghost tax preparer is someone who prepares a tax return for a fee but refuses to sign it or include a valid PTIN. That is a major red flag because paid preparers are required to sign the returns they prepare and include their PTIN on the return.
Why is the IRS warning taxpayers about tax advice on social media?
The IRS is warning taxpayers because misleading tax advice on social media can encourage people to claim credits or refunds they do not qualify for. Filing based on inaccurate information can lead to refund delays, audits, penalties, or enforcement action.
What new scam was added to the IRS Dirty Dozen list for 2026?
One notable addition to the 2026 list is abusive undistributed long-term capital gains claims tied to Form 2439. The IRS says it is seeing more overstated or fabricated claims in this area.
How can businesses help protect themselves from tax scams?
Businesses can help protect themselves by verifying unexpected payment requests or requests for sensitive information, avoiding suspicious links and attachments, and maintaining strong internal controls. Working with trusted tax and financial advisors can also help reduce risk.
