IRS Dirty Dozen adds new capital gains scheme for 2026

The IRS’s 2026 Dirty Dozen list is largely a mix of familiar schemes, from bad tax advice on social media  to impersonation attempts, but it does add one new entry: abusive undistributed long‑term capital gains claims.

The list, which the IRS has published for more than two decades, highlights the tactics scammers lean on during filing season and reflects where fraudsters are putting their energy. It reminds “everyone to remain vigilant and watch out for scams because thieves continuously adjust the pitches they use to take advantage of honest taxpayers,” IRS CEO Frank Bisignano said in a news release on Thursday.

New addition

The IRS has seen a rise in fabricated or inflated filings of Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, which 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 said.

The IRS said fake claims falsely linked to real, well-known organizations also are on the rise.

The Form 2439 scam replaces a previous entry on fuel tax credit concerns.

The other 11 scams in the annual list:

• IRS impersonation through email and text (phishing and smishing). Fake messages that look official — sometimes with QR codes — try to get taxpayers to click, share information, or download malware. The IRS logged more than 600 social media impersonators last year, so this one isn’t going away.

• AI‑powered IRS phone scams. These scams continue to evolve and include robocalls, voice mimicry, and spoofed caller IDs. 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.

• Fake charities. Scammers often exploit disasters and tragedies. Only donations to IRS‑recognized charities are deductible, and only those groups are legitimate.

• Misleading tax advice on social media. Viral posts promising easy refunds or secret credits can lead to delays, audits, and penalties. The IRS continues to warn that misinformation online is a major driver of bad filings. The Service advised taxpayers to follow advice from the IRS, tax professionals, and other reputable sources.

• Identity theft targeting IRS online accounts. Criminals may use stolen personal information to gain access to ataxpayer’s IRS online account or may pose as helpers to collect sensitive information during account setup.The IRS advised taxpayers to create accounts directly through IRS.gov, not through unsolicited links.

• Bogus “self‑employment tax credit” promotions. Scammers push a credit most people don’t qualify for, encouraging inaccurate filings to generate improper refunds. The IRS warned taxpayers that it is closely reviewing returns that claim this credit.

• Ghost preparers. These preparers refuse to sign the return or provide a preparer tax identification number — a major red flag. Since taxpayers are legally responsible for whatever is filed, the IRS advised taxpayers to use a trusted tax professional for help.

• Noncash charitable contribution schemes. Some promoters promise big tax savings by inflating the value of donated property, such as conservation easements or artwork.

• Overstated withholding schemes (fabricated wage/withholding data). Scammers tell taxpayers to inflate withholding amounts to trigger larger refunds. The IRS verifies withholding, so this can result in penalties.

• Spear‑phishing and malware targeting tax pros. “New client” or “document request” emails often contain malicious links or attachments designed to steal data from tax professionals and businesses. 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.

• Aggressive offer in compromise marketing. Some companies overpromise results and charge high fees. The IRS offers free tools to check eligibility without the sales pitch.

While scams increase during filing season, the IRS warned that they are a year-round issue.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.