The IRS releases a "Dirty Dozen" list of top tax scams each year. The 2026 edition adds three new threats driven by artificial intelligence, an obscure tax form, and viral social media advice. Here is what is on the list and how to protect yourself.
What's New on the 2026 Dirty Dozen
AI-Enabled IRS Phone Impersonation
Scammers now use artificial intelligence to clone real IRS employee voices and make realistic calls demanding immediate tax payments. Callers threaten arrest, deportation, or license revocation if you do not pay on the spot. The IRS does not call taxpayers to demand immediate payment without first sending a written notice. If you get one of these calls, hang up. Report it to phishing@irs.gov or the Treasury Inspector General at 1-800-366-4484.
Abusive Form 2439 Schemes
Form 2439 reports undistributed long-term capital gains credited to shareholders from mutual funds and REITs. Promoters are now selling bogus tax shelters built around inflated or fabricated Form 2439 entries to generate fraudulent credits. Participating exposes taxpayers to accuracy penalties of 20%, substantial understatement penalties, and potential fraud referrals. If a promoted investment promises unusually large Form 2439 credits, treat it as a warning sign.
Social Media Tax Hacks
Videos on TikTok, YouTube, and Instagram are promoting fabricated deductions, inflated wage withholding on Form W-2, and misuse of the fuel tax credit. Filing a return based on these hacks results in back taxes, penalties, and interest. The IRS uses data analytics to flag returns with unusual credits or deductions relative to income and occupation. In some cases, filers are referred for criminal investigation.
Perennial Entries Still on the 2026 List
Fake charities. Fraudulent organizations appear during disasters and tax season to divert donations. Verify any charity at IRS.gov/charities using the Tax Exempt Organization Search before giving. Only qualifying organizations generate a deductible contribution.
Identity theft. Stolen Social Security numbers are used to file fraudulent returns and claim refunds before you file. File early when possible and sign up for an IRS Identity Protection PIN at IRS.gov/ippin. The six-digit PIN prevents anyone else from e-filing a return using your SSN.
OIC mills. These firms charge large upfront fees to submit Offers in Compromise for taxpayers who do not qualify. The legitimate IRS Offer in Compromise program has strict financial eligibility tests. Use the free IRS OIC Pre-Qualifier tool at IRS.gov before paying anyone to prepare one.
Spear-phishing targeting tax professionals. Highly personalized emails target CPAs, enrolled agents, and bookkeepers to steal Electronic Filing Identification Numbers and client data. Verify any unexpected request for credentials through a separate communication channel before responding.
Ghost preparers. Paid preparers who refuse to sign the return or provide their Preparer Tax Identification Number are operating illegally. Verify your preparer's credentials at IRS.gov/taxpros before filing.
What the IRS Will and Won't Do
The IRS will not:
- Call you demanding immediate payment without first sending a written notice
- Require payment by gift card, wire transfer, or cryptocurrency
- Threaten police arrest for unpaid taxes over the phone
- Send unannounced agents to your home without prior written notice
All legitimate IRS contact begins with a mailed notice bearing a notice number in the top right corner. You can verify any notice at IRS.gov or by calling 1-800-829-1040.
Steps to Protect Yourself
- Create an IRS Online Account at IRS.gov to monitor your transcripts and records directly.
- Sign up for an Identity Protection PIN at IRS.gov/ippin to block fraudulent returns.
- Verify charities at IRS.gov/charities before donating.
- Confirm your preparer's PTIN at IRS.gov/taxpros.
- Never pay taxes via gift card, wire, or cryptocurrency to any caller demanding payment.
- Report suspected phone scams to phishing@irs.gov or 1-800-366-4484.
If you received an unexpected IRS notice or believe you've been targeted by a tax scam, contact TS CPA for a free consultation. We respond within the same day.