The IRS Dirty Dozen — 12 Scams That Could Blow Up Your Finances

Tax TorpedoesIRS Dirty Dozen
Written By Larry Hall

Written by Larry Hall
April 1, 2026

Tax season is prime hunting season for scammers. Every year, as millions of Americans prepare to file their taxes, a different group of people is also getting busy — fraudsters who are very good at making themselves look legitimate.

The IRS annually releases its "Dirty Dozen" list of tax scams that threaten the financial and personal information of taxpayers, businesses, and tax professionals. Think of it as the IRS sounding the alarm — a heads-up about the tricks criminals are using right now, during this filing season.

This year's list has a new entry, a few familiar faces, and one theme that runs through nearly all of them: artificial intelligence is making scams harder to spot than ever before. Here's what you need to know.

#1 — IRS Impersonation by Email and Text (Phishing & Smishing)

You get a text or email. It looks official — IRS logo, formal language, urgent tone. It says your refund is on hold, or that you owe money immediately. There's a link. Don't click it.

Scammers send emails, direct messages, and texts that appear to be from the IRS, often using alarming language and QR codes directing taxpayers to fake IRS websites to verify accounts, enter personal information, or claim refunds. The IRS reported more than 600 social media impersonators in fiscal year 2025 alone.

The rule: The IRS will almost always contact you by postal mail first. An unsolicited email or text claiming to be the IRS is a scam.

#2 — AI-Enabled IRS Impersonation by Phone

This one is new and genuinely alarming. Phone scams have evolved to include robocalls using spoofed caller IDs and AI-generated voices. The caller may sound completely human and authoritative — because an AI is generating the voice in real time.

The IRS generally contacts taxpayers by mail first and does not leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest. If someone calls claiming to be the IRS and demands immediate action — hang up.

#3 — Fake Charities

Disasters and tragedies bring out the best in people — and the worst in scammers. Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations and personal information.

Before you donate and before you claim any charitable deduction, verify the organization is IRS-recognized using the Tax Exempt Organization Search tool at IRS.gov. If it's not on that list, your donation won't be deductible — and your money may be going straight into a scammer's pocket.

#4 — Misleading Tax Advice on Social Media

Your nephew saw a TikTok about a tax hack that could get you a $5,000 refund. Your friend shared a post about a credit nobody talks about. These things spread fast — and they can get you into serious trouble.

Viral posts about "tax hacks" can push taxpayers to file returns with false information or claim credits they don't qualify for, which can lead to refund delays, audits, penalties, or worse. The IRS is actively watching for these schemes.

Social media is a great place to find a recipe or a funny cat video. It is not a reliable source of tax advice.

#5 — Identity Theft Involving Your IRS Online Account

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.

If someone offers to help you set up your IRS account, decline politely and do it yourself directly at IRS.gov. Never share your login credentials with anyone.

#6 — Abusive Undistributed Long-Term Capital Gains Claims (NEW this year)

This is the new addition to the 2026 list, replacing fuel tax credit abuse from prior years. Schemes involve overstated or fabricated Form 2439 claims — the form used by shareholders of certain investment funds or real estate trusts to claim a refundable credit for taxes paid on undistributed capital gains. The IRS has seen fake claims falsely linked to real, well-known organizations.

If someone is promoting an unusually large refund tied to an investment you barely remember making, be very skeptical. The IRS is closely watching these claims.

#7 — Bogus "Self-Employment Tax Credit" Promotions

The IRS cited schemes promoting a nonexistent broad "self-employment tax credit" designed to encourage inaccurate filings and generate improper refunds. This one circulates heavily on social media. Most taxpayers don't qualify for any such credit, and filing a fraudulent claim can trigger audits, penalties, and worse.

#8 — Ghost Preparers

A ghost preparer files your tax return but doesn't sign it and doesn't include a Preparer Tax Identification Number (PTIN). Why does that matter? Because taxpayers are legally responsible for what is filed on their return. If a ghost preparer puts something fraudulent on your return, you're the one who faces the consequences.

Never sign a blank or incomplete return. Always verify your preparer has a valid PTIN, which you can check at IRS.gov.

#9 — Noncash Charitable Contribution Schemes

Some schemes use inflated appraisals — such as conservation easements or donated artwork — to eliminate or significantly reduce tax liability. These arrangements are frequently marketed as sophisticated tax planning strategies. The IRS considers many of them abusive, and participants have faced large penalties and back taxes.

#10 — Overstated Withholding Schemes

Scammers instruct taxpayers to inflate withholding amounts on incorrect forms to generate larger refunds. Variations involve Forms W-2, 1099-R, 1099-NEC, and others. inaccurate claims can trigger processing delays, penalties, and enforcement action. If someone promises you a huge refund by adjusting your withholding figures, walk away.

#11 — Spear-Phishing Targeting Tax Professionals

This one targets your tax preparer, not you directly — but you're affected if they're compromised. Tax professionals are targeted by fake "new client" or "document request" emails carrying malicious links or attachments. If a scammer gets into your preparer's system, your personal data goes with it. It's worth asking your tax professional what security measures they have in place.

(HallTaxPro.com strongly encourages using our secure client portal for all document exchange — your information never travels through ordinary email.)

#12 — OIC Mills (Offer in Compromise)

The IRS Offer in Compromise program is a legitimate tool that allows certain taxpayers who genuinely can't pay their tax debt to settle for less. But "OIC mills" often overpromise results and charge high fees to taxpayers who don't even qualify. 

If you owe back taxes and someone is promising to settle your debt for pennies on the dollar — for a large upfront fee — be very cautious. Check your eligibility for free using the IRS's own Offer in Compromise Pre-Qualifier tool at IRS.gov before paying anyone anything.

The Bottom Line

Tax scams are getting more sophisticated every year, and artificial intelligence is accelerating that trend. The good news is that the best defenses are still pretty simple: slow down, be skeptical of anything urgent or unexpected, and verify before you click, donate, or sign anything.

The IRS has launched a new online tool at https://www.irs.gov/help/report-fraud that allows individuals to confidentially report suspected tax fraud, scams, or identity theft using a smartphone, tablet, or computer. If you see something, say something.

And as always — if something sounds too good to be true on your tax return, it almost certainly is.

Questions? I'm always happy to talk. Reach out at info@halltaxpro.com or give me a call at (603) 727-2204.

This article is for informational purposes only and does not constitute professional tax advice. For guidance on your specific situation, consult a qualified tax professional.

📚 Sources & Further Reading

Larry Hall

Lawrence (Larry) Hall, CPA, is a Grantham, New Hampshire based tax professional. He holds MS in Accounting and MBA degrees from Plymouth State University, where he taught accounting for several years. He thinks a lot about tax matters so you don’t have to.

https://HallTaxPro.com
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