Tax Scams

IRS Dirty Dozen Tax Scams 2026: Complete List and Protection Guide

By Editorial Team — reviewed for accuracy Updated
Last reviewed:

IRS Dirty Dozen Tax Scams 2026: Complete List and Protection Guide

Every year, the IRS publishes its “Dirty Dozen” list — a compilation of the most prevalent tax scams threatening taxpayers. For 2026, the list reflects a sharp increase in AI-powered fraud, social media exploitation, and scams specifically targeting the new One Big Beautiful Bill (OBBB) provisions. If you file taxes, you are a target. This guide covers every scam on the list and exactly how to protect yourself.

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

What Is the IRS Dirty Dozen?

The IRS Dirty Dozen is an annual awareness campaign published at irs.gov/newsroom/dirty-dozen. It is not a legal classification — it is a consumer warning. The list highlights scams that the IRS sees spiking during the current filing season, and it is updated each year to reflect new threats.

The 2026 list is notable because several scams specifically exploit confusion around the OBBB’s new deductions (tips, overtime, car loan interest, Trump Accounts) and the discontinuation of IRS Direct File.

The Complete 2026 Dirty Dozen List

1. AI-Generated Phishing and Deepfake Calls

Threat level: Critical

This is the top threat for 2026. Scammers are using AI voice-cloning and large language models to generate phone calls, emails, and text messages that are nearly indistinguishable from legitimate IRS communications.

How it works:

  • You receive a phone call from someone who sounds exactly like an IRS agent — complete with natural speech patterns, appropriate hold music, and realistic background noise
  • AI-generated emails that perfectly replicate IRS formatting, including correct logos, case numbers, and legal citations
  • Text messages with links to fake irs.gov look-alike sites that capture your SSN and bank information

How to protect yourself:

  • The IRS will never initiate contact by phone to demand immediate payment
  • The IRS will never threaten arrest, deportation, or license revocation
  • The IRS will never demand payment by gift card, cryptocurrency, or wire transfer
  • Hang up and call the IRS directly at 1-800-829-1040 to verify any communication
  • Check your IRS Online Account to see if you actually owe anything

2. Ghost Tax Return Preparers

Threat level: High

A “ghost preparer” is someone who prepares your tax return but refuses to sign it or include their Preparer Tax Identification Number (PTIN). This is illegal — federal law requires every paid preparer to sign the return and include their PTIN.

How it works:

  • The preparer fills out your return and tells you to sign and mail it yourself
  • They may inflate deductions or fabricate credits (like the Earned Income Tax Credit) to generate a larger refund
  • They take a percentage of your refund as their fee
  • When the IRS audits the return, you are liable — not them, because their name is nowhere on it

Red flags:

  • They charge a fee based on a percentage of your refund
  • They refuse to e-file
  • They refuse to sign the return
  • They do not have a PTIN
  • They want to direct your refund into their bank account first

How to protect yourself:

  • Verify any preparer at the IRS Directory of Federal Tax Return Preparers (irs.treasury.gov/rpo/rpo.jsf)
  • Never sign a blank or incomplete return
  • Ensure the preparer signs the return and includes their PTIN before you file

3. Social Media Tax Schemes

Threat level: High

TikTok, Instagram, and YouTube are flooded with videos promoting bogus tax “hacks” and “loopholes.” Some of these have millions of views.

Common schemes promoted on social media:

  • Filing a false Schedule C to claim business losses you never incurred
  • Claiming the fuel tax credit (Form 4136) when you do not operate farm equipment or off-highway vehicles
  • Fabricating household employees to claim credits
  • Inflating home office deductions for W-2 employees (who generally do not qualify)
  • Misrepresenting personal expenses as business expenses under self-employment

How to protect yourself:

  • If a tax strategy sounds too good to be true, it is
  • Verify any claim against official IRS publications, not social media posts
  • Remember: you are legally responsible for everything on your return, even if a TikTok creator told you to do it

Threat level: High

The One Big Beautiful Bill created several new deductions and programs that scammers are exploiting because taxpayers are unfamiliar with the rules.

Specific scams:

  • Fake Trump Account enrollment: Scammers contact taxpayers claiming they need to “pre-register” and pay a fee to open a Trump Account. In reality, Trump Accounts are opened through Treasury-designated financial institutions starting July 2026, and the government contributes ~$1,000 — you do not pay to enroll
  • Phony tips deduction services: Preparers promising to claim the tips deduction for people who do not actually receive tips
  • Fake Schedule 1A filing services: Websites charging fees to “process” your Schedule 1A — a form that is included free in all tax software
  • Overtime deduction inflation: Preparers reclassifying regular wages as “overtime” to claim the overtime deduction

5. Fake Charity Scams

Threat level: Moderate

After natural disasters and during the holiday giving season, scammers create fake charities to exploit taxpayers’ generosity and their desire for tax deductions.

How it works:

  • Fraudulent organizations with names that sound similar to legitimate charities (e.g., “American Red Crossing” vs. “American Red Cross”)
  • Aggressive solicitations after publicized disasters
  • Fake donation receipts used to inflate itemized deductions

How to protect yourself:

  • Verify any charity at irs.gov/charities-non-profits/tax-exempt-organization-search
  • Never donate via cash or gift card
  • Get a written acknowledgment for any donation over $250

6. Inflated or Fabricated Deductions and Credits

Threat level: High

Some preparers systematically inflate deductions to generate larger refunds, taking a cut as their fee. This is different from ghost preparers — these individuals may have legitimate PTINs but still commit fraud.

Common inflations:

  • Overstating charitable contributions
  • Fabricating business expenses on Schedule C
  • Inflating medical expenses to exceed the 7.5% AGI threshold
  • Claiming the car loan interest deduction for vehicles not assembled in the United States
  • Overstating SALT deductions beyond actual amounts paid

How to protect yourself:

  • Keep receipts and documentation for every deduction you claim
  • Review your completed return line by line before signing
  • If a preparer promises a specific refund amount before seeing your documents, walk away

7. Employee Retention Credit (ERC) Mills

Threat level: Moderate (declining)

While the ERC has expired for new claims, aggressive promoters are still encouraging businesses to file amended returns (Form 941-X) to claim retroactive ERC refunds they do not qualify for.

How it works:

  • Third-party promoters contact businesses claiming they qualify for ~$5,000 to ~$26,000 per employee in retroactive ERC
  • They charge large upfront fees or take a percentage of the refund
  • The claims are often based on fabricated or exaggerated eligibility criteria

How to protect yourself:

  • The ERC has very specific eligibility requirements tied to COVID-19 government orders or revenue declines
  • The IRS is actively auditing ERC claims and has a voluntary withdrawal program for businesses that filed questionable claims
  • Consult a legitimate tax professional, not a “one-size-fits-all” ERC promoter

Threat level: Critical

Identity thieves steal SSNs to file fraudulent tax returns and claim refunds before the real taxpayer files.

Warning signs:

  • Your e-filed return is rejected because a return with your SSN was already filed
  • You receive an IRS notice about income you did not earn
  • You receive a refund you did not request
  • IRS records show you received wages from an employer you do not recognize

How to protect yourself:

  • File early — the first return filed with a given SSN is generally processed
  • Get an Identity Protection PIN (IP PIN) from the IRS
  • Monitor your IRS account online for unexpected activity
  • If victimized, file Form 14039 (Identity Theft Affidavit) immediately

9. Spearphishing Attacks on Tax Professionals

Threat level: High

Cybercriminals specifically target CPAs, enrolled agents, and tax preparation firms to steal client data in bulk.

How it works:

  • Phishing emails impersonating the IRS e-Services portal, software vendors, or professional organizations
  • Malware designed to capture client SSNs, bank account numbers, and prior-year return data
  • Business email compromise: hacking a preparer’s email account and sending fraudulent communications to clients

What tax professionals should do:

  • Use multi-factor authentication on all systems
  • Encrypt all client data at rest and in transit
  • Report data breaches to the IRS immediately

10. Offer in Compromise Mills

Threat level: Moderate

Companies that aggressively advertise they can settle your tax debt for “pennies on the dollar” are often charging large upfront fees for Offer in Compromise (OIC) applications that have little chance of being accepted.

Reality check:

  • In fiscal year 2024, the IRS accepted only ~33% of OIC applications
  • The average accepted OIC was ~$6,194 — not the millions suggested in TV ads
  • Most taxpayers are better served by an installment agreement or Currently Not Collectible status

How to protect yourself:

  • Use the IRS’s free OIC Pre-Qualifier tool at irs.gov/payments/offer-in-compromise
  • Be skeptical of any company guaranteeing an OIC outcome
  • Know that the IRS itself does not charge a fee to submit an OIC application (the fee is $205, waived for low-income taxpayers)

11. Abusive Tax Shelters and Syndicated Conservation Easements

Threat level: Moderate

Complex schemes marketed to high-income individuals that promise outsized tax deductions relative to the actual economic activity or investment.

Common structures:

  • Syndicated conservation easements that inflate land values by 10x or more to generate artificial charitable deductions
  • Micro-captive insurance arrangements that disguise income as deductible insurance premiums
  • Offshore arrangements designed to hide income or assets

How to protect yourself:

  • If a promoter says you can deduct ~$4 or more for every ~$1 invested, it is likely an abusive shelter
  • The IRS lists specific reportable transactions at irs.gov/businesses/corporations/listed-transactions
  • Penalties for participating in abusive shelters can reach ~75% of the underpaid tax

12. Misleading Tax Refund Advance Loans

Threat level: Moderate

Tax preparation chains offer “instant refund advances” that are actually high-cost loans secured by your expected refund. While some of these are legitimate (and advertised as 0% APR), others carry hidden fees.

Hidden costs to watch for:

  • Mandatory purchase of add-on services (audit protection, ID theft insurance)
  • Higher preparation fees bundled with the “free” advance
  • Interest charges if the refund takes longer than expected
  • Fees for loading the refund onto a prepaid debit card instead of direct deposit

How to protect yourself:

  • E-file with direct deposit — your refund arrives in ~21 days without any loan needed
  • Read the full terms of any refund advance offer
  • Compare the total cost (prep fees + advance fees + card fees) against doing it yourself with free filing software

How to Report Tax Scams

What to ReportWhere to Report
IRS impersonation (phone, email, text)Treasury Inspector General (TIGTA): tigta.gov or 1-800-366-4484
Phishing emailsForward to [email protected]
Abusive tax schemes or promotersIRS Form 14242 or email to irs.gov/compliance/submit-a-referral
Tax preparer fraudIRS Form 14157
Tax-related identity theftIRS Form 14039
Suspected tax fraud (general)IRS Form 3949-A

7 Rules the IRS Wants You to Remember

  1. The IRS will never call you to demand immediate payment. First contact is almost always by mail.
  2. The IRS will never threaten to arrest you or revoke your driver’s license.
  3. The IRS will never demand payment by gift card, wire transfer, or cryptocurrency.
  4. The IRS will never ask for credit/debit card numbers over the phone unless you initiated the call.
  5. The IRS will never email you about a refund or request personal information by email.
  6. The IRS will never text you or contact you via social media.
  7. Legitimate IRS notices always include a notice number and your rights as a taxpayer.

Frequently Asked Questions

What should I do if I already fell for a scam?

Act immediately. If you gave out your SSN, file Form 14039 with the IRS and place a fraud alert with the three credit bureaus (Equifax, Experian, TransUnion). If you sent money, contact your bank or payment provider to attempt a reversal. File a report with the FTC at reportfraud.ftc.gov.

How do I know if an IRS letter is real?

Legitimate IRS notices come by U.S. mail (not email or text), include a notice number in the upper right corner, and reference specific tax years and amounts. You can verify any notice by logging into your IRS Online Account — real notices will appear there.

Can the IRS actually call me?

In rare cases, yes — the IRS may call about an overdue account if you have already received multiple mailed notices. However, these calls will never demand immediate payment or threaten arrest. If in doubt, hang up and call 1-800-829-1040.

Are all ERC claims fraudulent?

No. Many businesses legitimately qualified for the Employee Retention Credit. However, the IRS has flagged a large number of claims filed through aggressive third-party promoters as potentially fraudulent. If you filed an ERC claim and are unsure about its validity, consult an independent tax professional.

What is the penalty for filing a fraudulent return?

Civil fraud penalties can reach ~75% of the underpayment. Criminal tax fraud carries penalties of up to ~$250,000 in fines and ~5 years in prison. Even if a preparer committed the fraud, you as the taxpayer can be held liable for civil penalties on your return.

How do I get an IP PIN to prevent identity theft?

Visit irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin. You will need to verify your identity through ID.me. Once enrolled, you receive a new six-digit PIN each year that must be included on your return — without it, a return filed under your SSN will be rejected.

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.