Twelve Scams to Look Out For

Each year, the IRS releases its Dirty Dozen list to warn taxpayers about common scams that threaten personal and financial information. These schemes target individuals, businesses, and even tax professionals and many are becoming more sophisticated. For 2026, the IRS urges taxpayers to remain cautious year‑round and be alert for the following scams:

1. IRS impersonation emails and texts – Phishing and smishing messages that appear to come from the IRS, often using alarming language or QR codes.
2. AI‑enabled phone scams – Calls using spoofed caller IDs or computer‑generated voices demanding immediate action or payment.
3. Fake charities – Fraudulent organizations created to exploit donations, especially after disasters or major events.
4. Misleading tax advice on social media – Viral “tax hacks” encouraging false filings or ineligible credits.
5. Identity theft involving IRS online accounts – Criminals using stolen information to access taxpayer accounts.
6. Abusive capital gains credit claims – Improper or fabricated claims involving Form 2439 and undistributed capital gains.
7. Bogus self‑employment tax credit promotions – Scams promising large refunds based on credits taxpayers don’t qualify for.
8. Ghost tax preparers – Preparers who refuse to sign returns or provide identification, leaving taxpayers responsible for errors.
9. Inflated charitable deductions – Overstating the value of non‑cash donations to reduce tax liability.
10.  Overstated withholding claims – Filing false income or withholding amounts to generate improper refunds.
11.  Spear‑phishing attacks – Targeted emails designed to steal sensitive tax or financial data, often aimed at businesses and tax professionals.
12.  Offer in Compromise scams – Companies falsely promising to settle tax debt for pennies on the dollar.

The IRS does not initiate contact by email, text, or social media. If something feels suspicious, pause and verify before responding.

• Report suspected tax fraud or abusive schemes at IRS.gov/SubmitATip, where tips can be submitted confidentially online.
• Don’t click unexpected links or open attachments claiming to be from the IRS.
• Hang up on suspicious IRS‑related call; the IRS does not demand immediate action by phone.
• Report phishing emails or messages to phishing@irs.gov and follow IRS reporting instructions.
• Act quickly if your identity may be compromised by visiting IRS.gov/idtheft for next steps.

If you have questions or concerns, the professionals at HFCO are here to help you navigate potential scams and take the appropriate next steps with confidence.

Source: IRS.gov