AI and tax scams
The IRS has released its 2026 “Dirty Dozen” tax scams list, cautioning taxpayers, businesses, and tax professionals about emerging tactics used in identity theft and fraud. IRS CEO Frank Bisignano emphasized vigilance against evolving scams that exploit honest taxpayers.
This year’s list includes notable changes, advising year-round caution against criminals seeking money, personal information, and data. Key scams to watch out for include:
- Phishing Scams: Fraudsters send emails, direct messages, and texts purporting to be from the IRS. These messages often use 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 communications.
- Phone Scams: Phone scams are evolving with the use of artificial intelligence (AI), using computer-generated tactics and spoofed caller IDs to appear legitimate. The IRS reminds taxpayers that it will generally contact them by mail first and the agency doesn’t leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest.
- Fake Charities: Fraudsters frequently exploit tragedies and disasters by creating fake charities to collect donations as well as personal information. 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.
- Social Media Scams: 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.
- IRS Online Account Scams: Criminals may attempt to use stolen personal information to gain unauthorized access to a taxpayers’ IRS online account, or may pose as helpers to collect sensitive information to gain access while an account is being set up.
- Form 2439 Abuse: The IRS has identified an increase in the abuse of Form 2439, which allows shareholders of certain investment funds or real estate trusts to claim a refundable credit for taxes paid on undistributed capital gains.
- Self-Employment Tax Credit Scams: Scammers may use misleading claims about a broad “self-employment tax credit” to encourage inaccurate filings and generate improper refunds.
- Ghost Preparers: A ghost preparer prepares a tax return but refuses to sign it and/or refuses to include a Preparer Tax Identification Number.
- Inflated Appraisals of Donated Property: Some schemes involve inflated appraisals of donated property using art or syndicated conservation easements, with promoters often promising to eliminate or substantially reduce tax liability.
- Inflating Withholding: Scammers are encouraging taxpayers to inflate their withholding amounts (sometimes known as “other withholding”) to manufacture a larger refund by reporting zero or little income on incorrect forms.
- Tax Professional Scams: Tax professionals and businesses are targets of “new client” and “document request” emails that deliver malicious links or attachments to gain access to systems and potentially steal client data.
- Offer in Compromise Mills: The IRS’ Offer in Compromise program can help eligible taxpayers resolve tax debt when they’re unable to pay in full, but so-called “OIC mills” often overpromise results and charge high fees to taxpayers who don’t qualify.
The IRS advises taxpayers to remain vigilant, create their own accounts directly through the IRS website, and seek reputable tax help. Taxpayers should avoid preparers who won’t sign the return and should use the agency’s free tools to check eligibility for programs like the Offer in Compromise to avoid high-pressure sales tactics.
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