Scammers are using complex schemes, such as AI deepfakes and identity theft, to commit billions of dollars in tax fraud each year. The IRS maintains a list of fraudulent schemes that taxpayers need to be aware of each tax season. Many of the entries on the list appear every year, although the Dirty Dozen often contains new schemes or additional information that you need to know based on changing fraud tactics. It is crucial that you are aware of how fraudsters may try to victimize you or steal your identity to file a fictitious tax return in your name.
Working with an experienced tax professional at Moskowitz, LLP can help protect you from fraudulent schemes. Schedule an appointment with our firm to get vital help on your taxes and to gain peace of mind that comes from working with a reputable law firm with over 30 years of experience. You can reach us at (888) TAX-DEAL (829-3325).
Here are some of the entries on the 2026 IRS Dirty Dozen list of which you need to be aware.
Abusive “Undistributed Long-Term Capital Gains” Claims
The newest entry on the 2026 list involves a scam in which fraudsters solicit taxpayers to claim credits for undistributed capital gains. Some investment vehicles, such as Mutual funds, may earn profits, but they do not immediately distribute them to investors. However, they do pay taxes on these games to the IRS. Here, you would receive a Form 2439 that allows you to seek a credit from the IRS. Fraudsters are encouraging investors to file false claims for credits for fictitious investment vehicles.
AI and Deepfake Phone Calls
The 2026 listing significantly expands the warning about impersonation of IRS agents to include deepfake AI calls. Advances in technology now allow scammers to more effectively impersonate IRS agents. Scammers can now use voice cloning and generative AI to convince unsuspecting taxpayers that they are really with the IRS.
Here, it is important to know that the IRS will never call you out of the blue. The agency will send you a manual letter to your address. Anytime that you get an unsolicited phone call from the IRS, especially one that demands money or threatens you with arrest, it is a surefire indicator of a scam.
AI + Phishing “Hybrid” Scams
Phishing scams are always a concern. Just like phone calls, scammers have used technology to send more convincing emails. Now, fraudsters can use AI to send emails and even letters that more closely mimic the language that the IRS would use. They can even create websites that closely resemble the one used by the IRS. Again, the IRS will not send you an unsolicited email that demands money. They will send you a letter through the mail, and this is where the use of AI has helped scammers become more persuasive.
Even if you have already filed your tax return, you should still be on the lookout for these scams. Fraudsters operate year-round, and they can take advantage of you when you least suspect or expect it.
Spear Phishing and Malware Campaigns Targeting Tax Professionals
Even if you have taken all necessary steps to secure your own information, it could still be compromised in a fraudulent scheme. Scammers relentlessly target others in an attempt to gain access to taxpayer data that they possess. The fraudsters could send emails that can allow them to gain control over the tax preparer’s computer system and records. Sensitive data such as your social security number and dependent information could be stolen in the process. Someone may even be able to file for a tax refund in your name. An unsuspecting and inexperienced tax professional could fall for the scheme, causing you damage. This makes it even more important that you work with an experienced and reputable tax professional.
Aggressive or Misleading Offer in Compromise Mills
Taxpayers have the ability to make an offer in compromise to the IRS if they cannot afford to pay the taxes that they owe. This is often the process of a negotiation with the agency. There are companies that make extremely aggressive promises about the results that they can obtain. Nobody can make these promises to you because the IRS must decide whether to accept your offer. Be very careful about any language from someone offering to help you that promises results. If you are going to work with anyone on a potential OIC to resolve your tax situation, you are best served by retaining a highly experienced tax professional, preferably one with a long track record of helping clients.
Contact a Tax Professional to Protect Yourself
The experienced tax attorneys and CPAs at Moskowitz, LLP keep abreast of the latest developments and possible threats to taxpayers, and we use our knowledge to help protect you. Schedule an appointment with a tax professional by filling out an online contact form or by calling us at (888) TAX-DEAL (829-3325) to learn how we can help.
