With tax-filing season in full-go mode and with March 5 being National Slam the Scam Day, the IRS on Thursday announced its annual “Dirty Dozen” list of tax scams for 2026 that threaten the tax and financial information of taxpayers, businesses, and tax professionals.
The Dirty Dozen is part of a broader campaign conducted through the Security Summit, a partnership among the IRS, state tax agencies, and the nation’s tax industry, and reinforced by outreach efforts tied to National Slam the Scam Day. These initiatives educate taxpayers about identity theft schemes and other forms of fraud, particularly during filing season.
“Today, Slam the Scam Day provides a great opportunity to remind everyone to remain vigilant and watch out for scams because thieves continuously adjust the pitches they use to take advantage of honest taxpayers,” IRS CEO Frank Bisignano said in a statement on March 5. “For more than two decades, the IRS has used the Dirty Dozen list to flag emerging scams that taxpayers should watch out for.”
A notable change to this year’s list is the addition of abusive undistributed long-term capital gains claims, which comes in at No. 6, replacing prior fuel tax credit concerns, as the IRS says it has seen an increase in overstated or fabricated claims tied to Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains.
The IRS advises all taxpayers to remain cautious year-round, as scammers are always on the lookout for new ways to obtain money, personal identifiable information, and data.
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The Dirty Dozen IRS Tax Scams to Watch for in 2025
The following are the 12 key scams to watch for in 2026:
1. IRS impersonation by email and text (phishing and smishing)
Scammers send emails, direct messages, and texts that appear to be from the IRS, often using alarming language and QR codes that direct taxpayers to fake IRS websites to “verify” accounts, enter personal information, or claim refunds. The IRS urges taxpayers not to click links or open attachments from unexpected messages and to report suspicious IRS-related emails, DMs, and texts. The IRS reported more than 600 social media impersonators during fiscal year 2025.
As a reminder, never click any unsolicited communication claiming to be from the IRS, as it may install malware surreptitiously. These links may install malicious software, including ransomware, on a taxpayer’s personal device, potentially preventing access to their files or personal information.
2. AI-enabled IRS impersonation by phone (robocalls, voice mimicry, and spoofed caller ID)
Phone scams continue to evolve, including calls that use computer-generated tactics and spoofed caller ID to appear legitimate. The IRS reminds taxpayers that it generally contacts taxpayers by mail first and the agency doesn’t leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest. Taxpayers shouldn’t rely on artificial intelligence-generated responses to complex tax questions, and they should verify any calculations or information provided by AI.
3. Fake charities
Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations and personal information. The IRS says it’s committed to preventing fraudulent nonprofits from taking advantage of U.S. taxpayers.
Taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.
4. Misleading tax advice on social media
Viral “tax hacks” can push taxpayers to file returns with false information or claim credits they don’t qualify for, leading to refund delays, audits, penalties, or possible jail time. The IRS continues to warn that social media-driven misinformation and disinformation remain a major driver of tax scams.
The IRS and the Coalition Against Scam and Scheme Threats warn taxpayers not to fall for these scams, and they urge people 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.
5. Identity theft involving IRS online account access
Criminals may attempt to use stolen personal information to gain unauthorized access to a taxpayer’s IRS online account or may pose as helpers to collect sensitive information during account setup. Taxpayers should create their account directly through IRS.gov and shouldn’t rely on unsolicited third parties offering assistance. The IRS provides official guidance to help taxpayers securely establish and protect their accounts.
6. Abusive undistributed long-term capital gains claims
The IRS identified an increase in the abuse of Form 2439, which 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 fabricated Form 2439 claims, including claims tied to organizations that aren’t legitimate investment funds or real estate trusts. The IRS has also seen fake claims falsely linked to real, well-known organizations. Improper claims may result in refund delays, audits, penalties, or enforcement action.
7. Bogus “self-employment tax credit” promotion
Scammers use misleading claims about a broad “self-employment tax credit” to encourage inaccurate filings and generate improper refunds. The IRS reminds taxpayers to rely on trusted sources and qualified tax professionals, not social media promotions, when determining eligibility for credits.
Many taxpayers don’t qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk.
8. Ghost preparers
A “ghost” preparer prepares a return but refuses to sign it and/or refuses to include a preparer tax identification number. When a preparer refuses to sign or provide a PTIN, that’s a major red flag; the taxpayer is legally responsible for what is filed. The IRS urges taxpayers to avoid preparers who won’t sign the return and to choose reputable help. Taxpayers should never sign a blank or incomplete return. Instead, the IRS reminds taxpayers to use a trusted tax professional for help.
9. Non-cash charitable contribution schemes
Some schemes involve inflated appraisals of donated property using syndicated conservation easements or art. Promoters often promise to eliminate or substantially reduce tax liability. The IRS warns taxpayers not to file returns with made-up information and reminds taxpayers that it can hold refunds while verifying claims.
10. Overstated withholding schemes (fabricated wage/withholding data)
Scammers encourage taxpayers to inflate withholding amounts (sometimes described as “other withholding”) to manufacture a larger refund by reporting zero or little income on incorrect forms. The IRS may delay processing while it verifies wages and withholding against third-party records. Inaccurate claims can lead to penalties and enforcement action.
There are multiple variations of the overstated withholding credit scheme, including those involving Forms W-2 and W-2G; Forms 1099-R, 1099-NEC, 1099-DIV, 1099-OID, and 1099-B; as well as the Alaska Permanent Fund Dividend, Schedule K-1 with Withholding Reported, and Unspecified Source of Withholding Credit Claimed.
11. Spear phishing and malware campaigns targeting tax professionals
Tax professionals and businesses remain targets of “new client” or “document request” emails that deliver malicious links or attachments to steal client data or access systems. The IRS and the Security Summit urge preparers to remain vigilant and to strengthen their security practices.
Businesses and individuals, including tax practitioners, should always be cautious and look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email. Warning signs may include unexpected requests for sensitive information, mismatched or unfamiliar sender addresses, urgent payment demands, or links directing users to websites that don’t clearly originate from IRS.gov. Be aware that by gaining access to a hacked email account, scammers can locate a genuine email from a previous victim’s email account sent to their tax professional.
12. Aggressive or misleading offer in compromise marketing
The offer in compromise program can help certain eligible taxpayers resolve tax debt when they’re unable to pay in full, but “OIC mills” often overpromise results and charge high fees to taxpayers who don’t qualify. Taxpayers can check eligibility using free IRS tools to avoid high-pressure sales tactics.
The IRS offered the following tips on how taxpayers can protect themselves from tax scams and what they should do if they receive a suspicious message or call:
- Don’t click unexpected links or open unexpected attachments.
- If you get a suspicious IRS-related call, hang up. The IRS provides guidance on what to do next, including how to report scams.
- To report suspected IRS-related phishing emails or messages, send them to phishing@irs.gov and follow IRS reporting instructions.
- If you think your tax identity has been compromised, visit IRS.gov/idtheft for steps to protect your account and recover.
Report abusive tax schemes and suspicious activity
The IRS encourages taxpayers, tax professionals, and the public to report suspected tax fraud, scams, identity theft, or other tax-related wrongdoing by visiting IRS.gov/SubmitATip.
The new online tool allows individuals to confidentially submit information using a smartphone, tablet, or computer. It consolidates IRS fraud-reporting options into one location and routes tips to the appropriate IRS office.
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The IRS says prompt reporting helps protect taxpayers and quickly stop abusive activity.
Photo credit: marcnorman/iStock
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