IRS Dirty Dozen 2026: 12 common tax scams and how to avoid them

Senior Wealth Strategist Jeff Brooks summarizes the Internal Revenue Service’s annual “Dirty Dozen” list of common tax scams and offers tips on how to identify and avoid them.

Key takeaways:

• When it comes to avoiding financial scams, advisors and their clients should remain vigilant throughout the year, but especially during tax season.
• The recent downsizing of the IRS may embolden bad actors to take advantage of the potential for reduced oversight and enforcement, making heightened awareness even more important this year.
• Knowing how to recognize common tax-related schemes is key to avoiding them, particularly as technology has made them increasingly sophisticated.

On March 5, the Internal Revenue Service (IRS) announced its annual “Dirty Dozen” list of tax scams for 2026. The announcement coincides with National “Slam the Scam” Day, which is an initiative led by the Social Security Administration to raise public awareness about government imposter scams. The Dirty Dozen list has been published annually by the IRS for more than 20 years and covers 12 common scams and schemes used by fraudsters to steal money, personal information, and data from taxpayers. The IRS makes it clear that this is not a legal document or a listing of enforcement priorities; rather, it is their effort to educate and raise awareness among tax professionals and the tax-paying public.

Tax season certainly raises public awareness of these criminal activities, but it is important to remain cautious throughout the year, as bad actors will always be on the lookout for new ways to obtain money through personal identifiable information and data. The perpetrators of these schemes can be very persuasive, but as in most cases, if it sounds too good to be true, it probably is.

Meet the 2026 Dirty Dozen

Without further ado, following are the top 12 tax scams identified by the IRS for 2026. This year’s list includes the addition of a scam involving abusive undistributed long-term capital gains claims tied to Form 2439 (see #6).

1. IRS impersonation by email and text. Email (phishing) and text (smishing) scams are fake communications from bad actors posing as legitimate organizations in the tax and financial community. Some offer inflated refunds while others threaten legal action for tax fraud. To avoid falling victim to these scams, always look for a valid source address and never click on any unsolicited communication claiming to be from the IRS.

2. AI-enabled IRS impersonation by phone. Phone scams have evolved to include calls that use computer-generated tactics and spoofed caller ID to appear legitimate. Keep in mind that the IRS generally contacts taxpayers by U.S. Postal Service first and does not leave urgent, threatening messages, nor calls to demand payment or threaten arrest.

3. Fake charities. New charities pop up quickly after natural disasters strike. Some of these are fake organizations set up by scammers to obtain money and personal information by taking advantage of the public’s sympathy and generosity. If you have any doubts as to the authenticity of a nonprofit organization, take a moment to confirm the tax-exempt status of those seeking donations by checking the Tax Exempt Organization Search tool on IRS.gov.

4. Misleading tax advice on social media. Social media provides a high-visibility platform for contributors to circulate wildly inaccurate tax advice. This may lead honest taxpayers to fall victim to identity theft or tax reporting problems. Taxpayers are urged to follow only verified sources of trusted information, such as the IRS and established tax professionals.

5. Identity theft involving IRS individual online account access. Under the guise of an “offer to help,” create an account on the IRS website, third-party swindlers will try to steal a taxpayer’s personal information and then submit fraudulent tax returns to get a big refund. No special assistance is needed to establish an account. Simply visit IRS.gov/payments, click on “Individual online account”, and follow the approved authentication process.

6. Abusive undistributed long-term capital gains claims. Form 2439 allows shareholders of certain investment funds or real estate trusts to claim a refundable credit for taxes paid on undistributed capital gains. Identified schemes involve overstated or hallucinated claims tied to organizations that are not legitimate investment funds or real estate trusts. Improper claims may result in refund delays, audits, penalties, or other enforcement actions. Beware of any offers referencing these credits, as they are extremely likely to be extended on behalf of fraudsters.

7. The bogus “self-employment tax credit” promotion. This supposed credit is loosely based on the much more limited and technical “Credits for Sick Leave and Family Leave.” But the “self-employment tax credit” does not exist. The IRS is closely reviewing returns showing this credit, so avoid any recommendations to claim it, and be prepared for full tax return scrutiny.

8. “Ghost” tax return preparers. Beware of tax preparers with whom you are unfamiliar or know based only upon promoted strategies. Be particularly careful when dealing with tax preparers who are unwilling to sign the return and include their Preparer Tax Identification Number (which is required by law), known as “ghost preparers”. And, of course, never sign a blank or incomplete return.

9. Non-cash charitable contribution schemes. These schemes often involve inflated valuations of donated property using syndicated conservation easements or art. Taxpayers should avoid filing returns with fabricated or unsupportable deductions for charitable gifts.

10. Overstated withholding schemes. This is a recent scheme circulating on social media encouraging people to fill out Form W-2, Form 1099, or other forms with false income and withholding information. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund due to the large amount of fraudulent withholding. Tax reporting and collection is not a game; this is wrong even if it somehow slides through the IRS review process.

11. Spear-phishing and malware campaigns targeting tax professionals. Scam artists impersonate new, potential clients to trick tax professionals into responding to their emails. The scammer then sends a malicious attachment that can compromise the preparer’s computer system and allow the attacker to access sensitive client information. Look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email.

12. Aggressive or misleading “offers in compromise”. The Offers in Compromise (OIC) program helps people settle their federal tax debts when they are unable to pay in full. But “mills”, or disreputable businesses, can aggressively promote OICs in misleading ways to people who are desperate to address their tax obligations but clearly don’t meet the qualifications. A taxpayer can check their eligibility for free using the Offer in Compromise Pre-Qualifier tool on IRS.gov.

Technology has improved our lives immensely, but not without a cost. Today’s fraudsters have access to a quickly evolving set of tools to help them perpetrate increasingly sophisticated scams.

Be vigilant and protective when sharing personal and financial information with anyone. To report an abusive tax scheme or tax return preparer, use the online Form 14242 (Report Suspected Abusive Tax Promotions or Preparers) on IRS.gov, or print and complete the PDF version of the form and mail or fax it, along with any supporting material, to the IRS Lead Development Center in the Office of Promoter Investigations. Taxpayers and tax practitioners may also send the information to the IRS Whistleblower Office for a possible monetary award.

Caveat Taxpayer!

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Originally Posted March 25, 2026 – IRS Dirty Dozen 2026: 12 common tax scams and how to avoid them