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Every year, the IRS releases its “Dirty Dozen”, which is a list of the most prevalent and dangerous tax scams targeting everyday taxpayers, businesses, and tax professionals. The 2026 list, released on March 5, continues to reflect a key trend, with scammers constantly evolving their tactics to target honest taxpayers. If you believe that your tax return involves one of these twelve items, it is important to contact a tax attorney as soon as possible to discuss your options.
What’s New in 2026
The most notable change to this year’s list is the addition of abusive undistributed long-term capital gains claims, replacing prior concerns involving improper fuel tax credit claims.
The IRS has seen 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 a refundable credit for taxes paid on undistributed capital gains.
If you’re being advised to file a Form 2439 and you don’t clearly recognize the investment or understand the source of the income, that’s a red flag. It’s worth pausing and getting a second opinion before filing.
The Full 2026 Dirty Dozen
- IRS Impersonation by Email and Text (Phishing & Smishing) Scammers send messages that appear to come from the IRS, often using urgent language or QR codes to direct taxpayers to fake websites. The IRS does not initiate contact this way. Avoid clicking unexpected links or sharing personal information.
- AI-Enabled IRS Phone Scams Phone scams now use AI-generated voices, robocalls, and spoofed caller ID to appear legitimate. The IRS generally contacts taxpayers by mail first and does not demand immediate payment or threaten arrest by phone. If you receive one of these calls there is a good chance it is from a scammer.
- Fake Charities Scammers posing as fake charities target taxpayer funds and personal information, often exploiting tragedies and disasters. Before donating, verify that an organization is IRS-recognized using the Tax Exempt Organization Search tool at IRS.gov.
- Misleading Tax Advice on Social Media Viral “tax hacks” can lead taxpayers to file false returns or claim ineligible credits, resulting in delays, audits, or penalties. The IRS and the Coalition Against Scam and Scheme Threats warn taxpayers not to fall for these scams, and urge them to follow trusted advice from the IRS, tax professionals, and other reputable sources. The IRS reminds taxpayers who knowingly file fraudulent tax returns that they could potentially face significant civil and criminal penalties.
- Identity Theft Targeting IRS Online Accounts Criminals use stolen data to access taxpayer IRS accounts or pose as helpers during account setup to collect sensitive information. Create your IRS account directly at IRS.gov and do not use unsolicited third-party assistance.
- Abusive Undistributed Long-Term Capital Gains Claims (NEW) As noted above, this is the new entry on the 2026 list. Schemes involving overstated or fabricated Form 2439 claims, including fake claims tied to real organizations, are on the rise. Improper claims may result in refund delays, audits, or enforcement actions.
- Bogus “Self-Employment Tax Credit” Promotions Scammers promote a broad “self-employment tax credit” to encourage inaccurate filings and improper refunds. Most taxpayers do not qualify, and the IRS is closely reviewing these claims.
- Ghost Preparers A ghost preparer files a return without signing it or providing a Preparer Tax Identification Number (PTIN). Taxpayers are legally responsible for what is filed, and they should never sign a blank or incomplete return. A legitimate tax preparer will always put their name on the return.
- Noncash Charitable Contribution Schemes Some schemes use inflated appraisals to eliminate or reduce tax liability. These arrangements can look sophisticated on paper, but frequently invite IRS scrutiny and litigation.
- Overstated Withholding Schemes Scammers instruct taxpayers to inflate withholding amounts to generate larger refunds, often using incorrect forms. The IRS has access to several forms that report withholding and can verify if your stated amounts are correct. Inaccurate claims can trigger penalties, enforcement action, and possible criminal investigation if done intentionally.
- Spear-Phishing and Malware Targeting Tax Professionals Tax professionals are targeted by fake “new client” or “document request” emails carrying malicious links or attachments. Warning signs include unfamiliar sender addresses, urgent payment demands, and links not originating from IRS.gov.
- Offer in Compromise Mills OIC mills overpromise results and charge high fees to taxpayers who may not qualify for the Offer in Compromise program. If a company is guaranteeing results before they’ve reviewed your financials, walk away.
What To Do If You’ve Been Targeted
If you believe you’ve been the victim of a tax scam, filed a return based on bad advice, or received notice from the IRS related to any of these schemes, don’t wait. Early action can significantly improve your ability to correct issues and reduce potential penalties.
