IRS scams tend to increase during tax season, although they may occur throughout the year. Learn about emerging scam tactics and effective strategies to protect yourself in an environment with growing fraudulent activity.
The “Dirty Dozen” List
The Dirty Dozen represents the “worst of the worst” tax scams that the Internal Revenue Service (IRS) cautions can pose dangerous threats to taxpayers, businesses, and professionals. This list is refined every year as part of a broader campaign conducted through the Security Summit, a partnership among state agencies, the nation’s tax industry, and the IRS. It is reinforced by Slam the Scam, an initiative that AMAC supports by educating the public on government and related scams and ways to stop scammers. Per IRS.gov, “For more than two decades, the IRS has used the Dirty Dozen list to flag emerging scams that taxpayers should watch out for.” On the list for 2026, the Form 2439 scam replaced a previous entry on fuel tax credit concerns. Let’s learn more about the new scam, as well as the remaining 11 that remain prevalent.
A New Addition to the “Dirty Dozen” List
For over twenty years, the Internal Revenue Service has published a list of common scams associated with the IRS. This year, the Journal of Accountancy warns people of a brand-new addition to the “dirty dozen” list related to “abusive undistributed long-term capital gains claims.” The IRS has observed a rise in fabricated or inflated filings of Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which allows shareholders of certain investment funds or real estate trusts to claim refundable credit for taxes paid on undistributed capital gains. Newly identified schemes involve overstated or fabricated claims, including some tied to organizations that are not recognized by the IRS as legitimate investment funds or real estate trusts. The Internal Revenue Service shares, “The IRS has also seen fake claims falsely link to real, well-known organizations. Improper claims may result in refund delays, audits, penalties, or enforcement action.” This new scam highlights the importance of remaining vigilant and informed during tax season and throughout the year.
Keeping safe from this new scam
Scammers seek to connect to people by any means possible – phone, email, text, social media platforms and more – to find unsuspecting targets. During tax season, and with recent rapid advancements in AI techniques offering money-hungry scammers increased access to individuals, tax related scams are skyrocketing. The IRS urges the public to be ultra-aware of scammers and stay on high alert. To avoid falling victim to the new scam, taxpayers are advised NOT to trust unsolicited, high-return investment offers, particularly those promising large tax credits via email or social media. Unexpected notices that claim you have a large refund available from an obscure investment fund or REIT (real estate investment trust) are red flags of scams. Likewise, being asked to fill out Form 2439 for an entity you do not hold shares in is another sign of a scam. In the Capital Gains Scam, fraudsters fabricate or overstate claims, telling taxpayers they are entitled to a refundable credit for taxes paid on undistributed capital gains. If a deal seems to offer an abnormally large, guaranteed tax credit on these gains, it’s likely fraud. If you are uncertain, avoid engaging with potential scammers. Rather, contact a tax professional for guidance.
The remaining 11 scams identified by IRS
- IRS impersonation by email and text (phishing & smishing): In this fraud, scammers send emails, direct messages (DMs), and texts claiming to be from the IRS. They also use alarming or official sounding language and/or QR codes that direct taxpayers to fake IRS websites where victims are tricked into entering personal information or paying money. The IRS cautions taxpayers not to click links or open attachments from unexpected messages and to report suspicious IRS-related emails, DMs, and texts to the IRS promptly. These links may contain dangerous malicious codes or software like ransomware.
- AI-enabled IRS impersonation by phone (robocalls, voice mimicry, spoofed caller ID): These phone scams include calls using computer-generated tactics such as spoofed caller ID to appear legitimate. The IRS cautions taxpayers that they do not initially contact people by phone. Instead, they generally contact taxpayers by mail first. The IRS does not leave urgent, threatening prerecorded messages nor do they call to demand immediate payment or threaten arrest. The IRS urges taxpayers NOT to rely on AI-generated responses to complex tax questions, and taxpayers should verify any calculations or information provided by artificial intelligence.
- Fake charities: Here, fraudsters exploit tragedies and disasters by creating fake charities for donations and to solicit personal information. These fraudulent non-profits seek to take advantage of innocent people willing to help. Taxpayers often donate money to charities knowing that they may be able to claim a deduction on their federal tax return if they itemize deductions. However, the IRS cautions that charitable donations only count if they are made to qualified tax-exempt organizations recognized by the IRS. Status can be verified using the IRS Tax Exempt Organization Search Tool.
- Misleading tax advice on social media: The IRS warns taxpayers about viral “tax hacks” that can push taxpayers to file returns with false information or claim credits for which they don’t qualify. This can lead to problems including refund delays, audits, penalties or worse. The IRS cautions that social media-driven misinformation and disinformation remain a major driver of tax scams.
- Identity theft involving IRS online account access: In this scam, criminals may use stolen personal data to illegally access a taxpayer’s IRS online account or may pose as assistants to collect sensitive information during account setup. The IRS cautions taxpayers to set up their account directly through IRS.gov and NOT rely on unsolicited third parties for help. They explain, “The IRS provides official guidance to help taxpayers securely establish and protect their accounts.”
- Bogus “Self-employed Tax Credit” promotion: Here, scammers use misleading claims of a broad “self-employment tax credit” to encourage inaccurate filings and generate improper refunds. The IRS cautions taxpayers NOT to rely on social media promotions for advice. Instead, to determine eligibility for credits, rely on trusted sources like the IRS or the service of a qualified tax professional.
- Ghost preparers: In this fraud, scammers act as “ghost” preparers. Typically, they will prepare a return but refuse to sign it or include a Preparer Tax Identification Number (PTIN). When a preparer refuses to sign or provide a PTIN – it is a red flag of a scam.The IRS cautions that the taxpayer is legally responsible for what is filed and they urge taxpayers to avoid preparers who will not sign the return. Always choose a reputable and trusted tax professional for help and never sign a blank or incomplete return.
- Non-cash charitable contribution schemes: This fraud relates to inflated appraisals of donated property using syndicated conservation easements or art. In this scheme, promoters frequently promise to eliminate or substantially reduce tax liability. The IRS cautions taxpayers NOT to file returns with made-up information and reminds taxpayers of its power to hold refunds while verifying claims.
- Overstated withholding scheme (Fabricated wage/withholding data): This scheme involves scammers who encourage taxpayers to inflate withholding amounts to gain a larger refund by reporting zero to little income on incorrect forms. The IRS may delay processing while it verifies wages and withholding against third-party records. The IRS cautions that inaccurate claims can lead to penalties and enforcement action.
- Spear-phishing and malware campaigns targeting tax professionals: Here, taxpayers, tax professionals and businesses are often targeted for scams, such as email messages involving a “new client” or “document request.” These emails can deliver malicious links or attachments designed to steal client data or access systems.The IRS and the Security Summit caution preparers to remain vigilant and to strengthen their security practices – watching out for suspicious messages, unusual behavior, and warning signs of scams such as unfamiliar sender addresses, urgent requests, and links directing users to websites that do not originate from IRS.gov.
- Aggressive or misleading Offer in Compromise marketing (“OIC mills”): The IRS describes that the Offer in Compromise program can help certain eligible taxpayers resolve tax debt when they are unable to pay in full. But they also explain that “OIC mills” frequently overpromise results and charge high fees to taxpayers who do not qualify. Therefore, the IRS cautions taxpayers to avoid high-pressure sales tactics. They also encourage taxpayers to check their eligibility using free IRS tools available on the official IRS website.
The ever evolving “Dirty Dozen” scam list
The “Dirty Dozen” list is ever evolving to keep up with the latest scams, including the New Capital Gains Scheme 2026. Tax-related scammers frequently attempt to obtain funds, personal information, and sensitive data from taxpayers, businesses, and tax preparers. People who experience tax scams—such as fraud, identity theft, or other forms of tax-related misconduct—are strongly encouraged to report these incidents to the IRS without delay. Remaining silent allows fraudulent activities to continue unchecked, while reporting empowers the IRS to take prompt measures against such abuses. A newly introduced online tool enables individuals to confidentially submit relevant information via smartphone, tablet, or computer. According to the IRS, this resource is intended to unify various reporting channels into a single location and ensure tips are directed to the appropriate office for action.
Disclosure: This article is purely informational and is not intended as a substitute for professional tax advice.
