Scam Alert: Tax season means scammers are busy with robocalls, texts, and phishing emails to steal your money. Here’s what you need to know to protect yourself from tax scams and other dangerous financial frauds, including identity theft.
Top tip is that the IRS will not contact you directly by email, text or phone, only by old-fashioned “snail mail”. Other top tip is never click on a link in an email or text, and never give financial information to a caller or on social media.
The IRS does issue an annual Dirty Dozen tax scams – these are the top twelve for 2026 – including tax scams generated by AI.
Of course, you should remain cautious year-round, since the bad guys are always on the lookout for new ways to obtain money, personal identifiable information, and data.
2026 Dirty Dozen: 12 Top Tax Scams to Avoid
1. IRS impersonation by email and text (phishing + smishing).
Scammers send emails, direct messages (DMs), 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 over 600 social media impersonators during fiscal year 2025.
- 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 your own files or personal information.
2. AI-enabled IRS impersonation by phone (robocalls, voice mimicry, spoofed caller ID).
Phone scams continue to evolve, including calls that use computer-generated tactics and spoofed caller ID to appear legitimate, including to mimic your bank or credit card compay.
The IRS reminds taxpayers that it generally contacts taxpayers by mail first and does not leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest.
- Never rely on AI-generated responses to complex tax questions, and they should verify any calculations or information provided by artificial intelligence.
3. Fake charities.
Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations and personal information. The IRS is committed to preventing fraudulent nonprofits from taking advantage of the American taxpayer.
- 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.
- ecoXplorer tip – Before you donate your money or your car, check with Charity Navigator, which rates the honesty and effectiveness of hundreds of charities.
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 worse. 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 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.
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 should not 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 has identified an increase in the abuse of Form 2439. This form 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 are not 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 do not qualify for these credits, and the IRS is closely reviewing claims in under this provision, so taxpayers filing bogus 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 (PTIN). When a preparer refuses to sign or provide a PTIN, that is a major red flag; the taxpayer is legally responsible for what is filed.
- Avoid preparers who will not sign the return. Use only a trusted tax professional for help.
- Never sign a blank or incomplete return.
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.
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.
- The IRS may delay processing while it verifies wages and withholding against third-party records. Inaccurate claims can lead to penalties and enforcement action.
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 pros, 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 do not 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 (“OIC mills”).
The Offer in Compromise program can help certain eligible taxpayers resolve tax debt when they are 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.
Report 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.
- Report suspected tax fraud, scams, identity theft, or other tax-related wrongdoing by visiting IRS.gov/SubmitATip.
- If you think your tax identity has been compromised, visit IRS.gov/idtheft for steps to protect your account and recover.
ecoXplorer Evelyn Kanter is an award-winning journalist with 25+ years of experience as a newspaper and magazine writer, radio & TV news producer & reporter, and author of guidebooks and smartphone apps – all focusing on travel, automotive, the environment and your rights as a consumer.
ecoXplorer Evelyn Kanter is President Emeritus of the International Motor Press Assn. (IMPA).
ecoXplorer Evelyn Kanter also is a member of the North American Travel Journalists Assn. (NATJA) and the North American Snowsports Journalists Assn. (NASJA).
Contact me at evelyn@ecoxplorer.com.
Copyright (C) Evelyn Kanter
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