Be Alert to Avoid Tax Scams Throughout the Year by Adam Cohen, CPA
Posted on April 28, 2026
by
Adam Cohen
The April tax filing deadline may be in the rearview mirror, but criminals remain hard at work inventing new and more sophisticated methods to steal taxpayers’ identities and their hard-earned financial assets. To help individuals and business owners recognize the warning signs of these crimes and avoid becoming victims, the IRS annually releases a list of the “Dirty Dozen” most common tax scams. Following are the top scams of 2026 for which taxpayers and tax preparers should remain on alert throughout the year.
Email (Phishing) and Text (Smishing) Messages Impersonating the IRS
Criminals go to great lengths to pose as the IRS, crafting demanding emails and text messages to create fear and trick taxpayers into revealing their personal identifiable information or claiming bogus tax refunds. The messages often include links to fake websites that appear to be official IRS pages and can capture personal data or install malicious software on taxpayers’ devices.
To avoid becoming a victim of these crimes, taxpayers should remember that the IRS’s first contact with them will come via U.S. mail. The agency will never initiate contact with a taxpayer via email, text or social media. Taxpayers should also refrain from giving out their Social Security numbers, bank details or IRS account credentials in response to any unsolicited message, regardless of how that message arrives.
IRS Impersonations via Telephone
Phone scams are not new, but they have become more difficult to identify with fraudsters using automated voice technology, robocalls and spoofed caller ID to make calls appear to come from an official IRS telephone number. Like email and text messages, these calls often involve alarming language, demands for immediate action and threats of penalties, legal action and even arrest.
Taxpayers should remember that the IRS’s first method of contact is by mail—never by phone. Moreover, IRS agents will never demand payment or threaten taxpayers with arrest.
Fake Charities
Bogus charities are an all-too-common problem that proliferates after a crisis or natural disaster. Criminals set up these fake organizations to exploit the public’s generosity and ultimately steal taxpayers’ money and identities.
Before making any donation, taxpayers should take a few minutes to confirm the organization’s tax-exempt status by visiting IRS.gov or charitynavigator.org.
Bad Advice on Social Media
Social media is not a reliable source for learning how to plan for tax savings. Much of the circulated tips and “hacks” on TikTok, Instagram and Facebook are misleading and inaccurate. Instead, taxpayers should visit the IRS website or consult with their accountants and financial advisors for timely advice and tax-efficient strategies tailored to their unique circumstances. After all, filing a fraudulent tax return could expose taxpayers to significant civil and criminal penalties.
Identity Theft Involving IRS Individual Online Accounts
The IRS allows taxpayers to create Individual Online Accounts to securely access their tax records, including previously filed returns, make payments and check on the status of refunds. However, criminals posing as authorized third parties to help taxpayers set up these accounts ultimately steal taxpayers’ sensitive information to claim a refund before the real taxpayers submit their returns.
To protect themselves from identity theft, taxpayers should create online IRS accounts directly through IRS.gov. There is no need to rely on unsolicited third parties.
Claims of Abusive Undistributed Long-Term Capital Gains
The IRS identified an increase in the abuse of Form 2439, which regulated investment companies (RICs) and real estate investment trusts (REITs) use to report undistributed long-term capital gains to shareholders. It shows the gains funds retain and the taxes they paid on behalf of shareholders, which enable shareholders to claim a credit or refund. Some of the schemes the IRS identified include overstated or fabricated Form 2439 claims, including some claims tied to organizations that are not legitimate investment funds or real estate trusts, and others falsely linked to real, well-known organizations.
Bogus “Self-Employment Tax Credit”
Scammers often use misleading claims about a “self-employment tax credit” to encourage small businesses, freelancers and “gig workers” to file inaccurate returns to generate large refunds. The truth is that most taxpayers do not qualify for these credits or the way criminals promote them.
Taxpayers should check with their accountants to understand how the tax laws work and whether they qualify for a long list of tax credits and deductions.
Ghost Tax Return Preparers
Ghost preparers are scammers who pose as bona fide tax professionals, but they refuse to sign the tax returns they prepare for taxpayers.
Taxpayers should be careful when choosing professionals to prepare and file their tax returns. They are legally responsible for the information contained in those documents, even if another party prepared them. It is important to confirm that the tax preparer selected has a valid Preparer Tax Identification Number (PTIN), as required by law, and signs the return where indicated. Taxpayers should not sign blank or incomplete tax returns prepared by others, nor should they work with anyone who charges fees based on the size of a taxpayer’s refund.
Non-Cash Charitable Contribution Schemes
With these schemes, scammers promise to reduce or eliminate victims’ tax liabilities by inflating appraisals of donated property, including syndicated conservation easements and art.
Taxpayers should be careful to avoid filing tax returns with false information. While returns with negligent or severely understated income will result in accuracy-related penalties, evading taxes or willfully filing false returns can lead to significant fines and prison.
Overstated Withholding Scams
To help generate sizeable tax refunds, scammers may encourage taxpayers to report fake or inflated withholding amounts on a wide array of forms, including Form W-2, Wage and Tax Statement; W-2G, Gambling Winnings, 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts; 1099-NEC, Nonemployee Compensation; 1099-DIV, Dividends and Distributions; 1099-OID, Original Issue Discount; and 1099-B, Proceeds from Broker and Barter Exchange Transactions.
It is critical that taxpayers take the time to properly vet the people they select to help them file their annual tax returns. False claims can delay IRS processing and lead to penalties and other enforcement action.
Spear-Phishing and Malware Campaigns
Businesses, including accounting firms and tax professionals, have long been the target of cyberattacks that use deceptive emails and other communication channels to steal victims’ data or install malware on their devices. These messages are personalized for the recipients and designed to appear as if they came from a trusted vendor. They often include unsolicited requests for sensitive information, attachments to fake invoices or links to official-looking websites that allow criminals to gain unauthorized access to protected data and compromise victims’ devices with spyware or ransomware.
Business owners must strengthen their IT security defenses and educate employees on the warning signs of spear-phishing campaigns and how to protect themselves and the organization.
Misleading Offers in Compromise
The IRS’s Offers in Compromise (OIC) helps taxpayers settle their federal tax debts when they cannot pay the amount due in full. However, criminals have leveraged this program, falsely promoting its benefits to taxpayers who do not meet the required qualifications and charging them significant fees.
Taxpayers can check their eligibility for an OIC using the IRS’s free Offer in Compromise Pre-Qualifier tool at IRS.gov or by contacting their tax accountant.
About the Author: Adam Cohen, CPA, is a director with Baker Tilly’s Tax practice, where he works with closely held businesses and non-profit charities, hospitals and family foundations to maintain tax efficiency while complying with federal and state regulations. He can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7000 or info@bpbcpa.com.
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