IRS “Dirty Dozen” Tax Scams (2026): 12 Scams to Watch For

The Internal Revenue Service released its 2026 list of “IRS Dirty Dozen” tax scams, highlighting 12 common schemes that individuals and businesses should be aware of. These scams can impact both individuals and businesses, particularly when financial or tax information is shared online.

This year’s list includes abusive undistributed long-term capital gains claims and a continued increase in overstated or fabricated claims tied to Form 2439 (Notice to Shareholder of Undistributed Long-Term Capital Gains).

New additions for 2026 include IRS impersonation by email and text, AI-enabled IRS impersonation by phone, and misleading tax advice on social media.

Below is a breakdown of the IRS Dirty Dozen tax scams and what to watch for in each case:

1. IRS impersonation by email and text (phishing + smishing)

Scammers send emails, direct messages (DMs), and texts that appear to be from the IRS. These messages often use alarming language and QR codes directing taxpayers to fake IRS websites to “verify” accounts, enter personal information, or claim refunds.

2. AI-enabled IRS impersonation by phone (robocalls, voice mimicry, spoofed caller ID)

Phone scams continue to evolve. Some calls now use AI-generated voices and spoofed caller ID to appear legitimate.

3. Fake charities

Fraudsters may exploit tragedies and disasters by creating fake charities to collect donations and personal information.

4. Misleading tax advice on social media

Viral “tax hacks” can encourage taxpayers to file returns with false information or claim credits they are not eligible for—potentially leading to refund delays, audits, or penalties.

5. Identity theft involving IRS Online Account access

Taxpayers should create their accounts directly through IRS.gov and avoid relying on unsolicited third parties offering assistance.

6. Abusive undistributed long-term capital gains claims

These schemes involve overstated or fabricated Form 2439 claims, including those tied to organizations that are not legitimate investment funds or real estate investment trusts.

7. Bogus “Self-Employment Tax Credit” promotion

The IRS reminds taxpayers to rely on trusted sources and qualified tax professionals—not social media promotions—when determining eligibility for credits.

8. Ghost preparers

A “ghost” preparer completes a return but refuses to sign it or include a Preparer Tax Identification Number (PTIN).

9. Non-cash charitable contribution schemes

Some schemes involve inflated appraisals of donated property, including arrangements involving conservation easements or artwork.

10. Overstated withholding schemes (fabricated wage/withholding data)

Scammers may encourage taxpayers to inflate withholding amounts (sometimes listed as “other withholding”) to generate a larger refund while reporting little to no income on incorrect forms.

11. Spear-phishing and malware campaigns targeting tax professionals

Tax professionals and businesses may receive emails posing as “new client” or “document request” inquiries that contain malicious links or attachments designed to steal data or access systems.

12. Aggressive or misleading Offer in Compromise marketing (“OIC mills”)

While the Offer in Compromise program may help eligible taxpayers resolve tax debt, some promoters overpromise results and charge high fees to taxpayers who do not qualify.

Protecting Yourself & What to Do

• Don’t click unexpected links or open attachments

• Hang up on suspicious calls

• Report suspected IRS-related phishing emails to phishing@irs.gov and follow IRS instructions

• If you believe your tax identity has been compromised, visit the Internal Revenue Service Identity Theft Resources for next steps

While many of these schemes are not new, the methods used—particularly AI-driven impersonation and social media promotion—are becoming more sophisticated and more difficult to detect. In some cases, engaging with these schemes—knowingly or unknowingly—can lead to serious tax controversy issues or even trigger an IRS dispute.

Final Thought

Tax scams are becoming more sophisticated—and harder to recognize—especially as technology like AI makes fraudulent communications appear increasingly legitimate.

Staying informed is an important first step, but so is having the right guidance when something doesn’t look right or raises questions.

If you’re unsure about a tax position, filing, or communication you’ve received, working with an experienced tax lawyeror IRS tax attorney can help you understand potential risks, including exposure related to tax fraud, and determine the best path forward.

At Kundra & Associates, clients are advised across the Washington, D.C. and Rockville, Maryland region, as well as internationally, including matters connected to Mumbai. The firm provides guidance on complex tax matters, including tax controversy and IRS dispute resolution.