IRS Dirty Dozen 2026: Official List and New Jersey Notes

The IRS publishes an annual "Dirty Dozen" tax-scam awareness list. The official 2026 list announced on irs.gov includes impersonation schemes, abusive Form 2439 claims, bogus "Self-Employment Tax Credit" promotions, ghost preparers, overstated withholding, and aggressive offer-in-compromise marketing. This guide adds links to New Jersey guidance where a separate state process applies.

During filing season, a taxpayer may be expecting tax documents or agency correspondence, so an unexpected message can appear related to an active filing task. Verify the channel, sender, notice, and requested action through an official agency source.

This guide follows the twelve items in the IRS's official 2026 announcement and adds New Jersey Division of Taxation phishing, identity-theft, and ANCHOR-program references. Confirm current instructions before acting because reporting channels and procedures can change.

In This Article

1. IRS Impersonation by Email and Text (Phishing and Smishing)
2. AI-Enabled IRS Impersonation Phone Scams
3. Fake Charities and Disaster Fraud
4. Misleading Tax Advice on Social Media and "Free Money" Schemes
5. Identity Theft Through Fake IRS Online Account Help
6. Abusive Undistributed Capital Gains (Form 2439) Claims
7. Bogus "Self-Employment Tax Credit" Promotions
8. Ghost Tax Preparers
9. Non-Cash Charitable Contribution Schemes
10. Overstated Withholding Schemes
11. Spear-Phishing and Malware Targeting Tax Professionals
12. Aggressive Offer in Compromise Mills
13. NJ-Specific Scam Warnings
14. How to Report a Tax Scam
15. Frequently Asked Questions

1. IRS Impersonation by Email and Text (Phishing and Smishing)

Phishing emails and text messages ("smishing") impersonating the IRS lead the official 2026 list. The IRS lists AI-enabled scams - such as impersonation phone calls using voice cloning - as a separate item; treat any unexpected email, text, or call about a tax matter as unverified until you confirm it through your own IRS online account or a number you independently look up. Polished wording or realistic formatting is not evidence a message is genuine.

What has changed:

• AI-generated emails no longer contain the spelling errors and awkward phrasing that used to identify them
• QR codes in text messages direct to fake IRS payment portals that are pixel-perfect replicas of IRS.gov
• Some phishing campaigns reference specific OBBBA provisions (like the overtime deduction or tip deduction) to appear current and legitimate

How to identify fakes:

• The IRS does not initiate contact by email, text, or social media to request personal or financial information or payment. The first contact on a tax matter is normally a letter sent via US Mail (the IRS does respond through channels you initiate, such as codes for your Online Account).
• An unsolicited email demanding personal information or payment and claiming to be from the IRS is fraudulent - the IRS does not initiate contact by email to request sensitive data (it does send confirmations you request, such as Online Account codes)
• An unsolicited text message claiming to be from the IRS is fraudulent - the IRS does not initiate contact by text

Protection: If you receive a suspicious communication, do not click any links, do not call any phone numbers in the message, and do not provide any personal information. Report phishing emails to phishing@irs.gov.

2. AI-Enabled IRS Impersonation Phone Scams

New as its own entry for 2026: phone scams using AI voice technology to impersonate IRS agents. Deepfake voice calls mimicking IRS agents have been reported to the Treasury Inspector General for Tax Administration (TIGTA), complete with spoofed caller IDs, fabricated badge numbers, and AI-generated robocalls that respond conversationally to your questions.

How to identify fakes:

• Any phone call demanding immediate payment via gift card, wire transfer, or cryptocurrency is fake
• The IRS will never threaten arrest, deportation, or license revocation by phone
• If you did not initiate the call, hang up and call the IRS directly using the number on irs.gov

The IRS will never call you demanding immediate payment by gift card, wire transfer, or cryptocurrency. If someone does, hang up and report to TIGTA at 800-366-4484.

Protection: Report phone scams to TIGTA at 1-800-366-4484.

3. Fake Charities and Disaster Fraud

The IRS warns that fake charities may use disasters and other current events to solicit money. Verify the organization's tax-exempt status, name, website, and payment request through official sources before donating.

How the scam works:

• Fake charity collects donations via phone, email, or GoFundMe-style platforms
• Donor claims charitable deduction on Schedule A
• The IRS may deny the deduction because the organization is not a qualified 501(c)(3)
• The donor loses both the money donated and the tax deduction

Protection: Before donating, verify the organization's tax-exempt status using the IRS Tax Exempt Organization Search (opens in a new tab) tool. Be cautious of organizations with names similar to well-known charities. Never donate via gift card, wire transfer, or cryptocurrency to an unfamiliar organization. Cash donations of $250 or more require a written acknowledgment from the charity to be deductible.

4. Misleading Tax Advice on Social Media and "Free Money" Schemes

TikTok, Instagram, YouTube, and X (formerly Twitter) are flooded with tax advice that ranges from incomplete to outright fraudulent. The 2026 list highlights viral videos claiming you can:

• Write off your entire rent as a home office deduction
• Claim your dog as a dependent
• Deduct your entire car payment (not just the IRC §163(h)(4)(D) interest portion, but the full principal-plus-interest payment)
• Claim fuel tax credits (Form 4136) for personal vehicles

The fuel tax credit scam is particularly dangerous. Form 4136 is a legitimate credit for off-highway business use of fuel (farming, construction, commercial fishing). It is not for commuting or personal driving. The IRS has identified thousands of dubious claims generated by social media advice across these schemes. Certain excessive or impossible fuel-credit claims can draw the $5,000 frivolous-return penalty under IRC Section 6702, and where fraud is established, the IRC Section 6663 civil fraud penalty is 75% of the portion of the underpayment attributable to fraud - it is fact-dependent, not a categorical penalty on every filer.

Protection: Do not take tax advice from social media without verifying it with a qualified professional. If something sounds too good to be true, it is. Legitimate tax deductions require substantiation, and legitimate credits require qualifying activities.

5. Identity Theft Through Fake IRS Online Account Help

Scammers pose as "helpful" third parties offering to set up your IRS Individual Online Account. The pitch arrives by phone, social media, or online ads: they will handle the sign-up for you, or "unlock" a payment or refund supposedly tied to the account. In reality, the account is free and easy to create yourself. What the scammer wants is the personal information you hand over in the process - SSN, photo ID, address history - which is then used to file fraudulent returns and redirect refunds.

Protection:

• Set up your IRS Online Account yourself, directly at irs.gov/account; no third party is needed
• Never give your SSN, login credentials, or photo ID to someone who contacted you offering account help
• Request an IP PIN from the IRS (irs.gov/ippin) and monitor your IRS account for unexpected filings
• If your information was actually used to file a return (an e-filed return rejects because one was already filed, or the IRS writes about a return you did not file) or the IRS instructs you to: file IRS Form 14039 (Identity Theft Affidavit) and NJ Form IDT-100 (Identity Theft Declaration). If your data was only exposed, the IRS says most people should not file Form 14039 - request an IP PIN and consider a credit freeze with all three bureaus instead

6. Abusive Undistributed Capital Gains (Form 2439) Claims

Form 2439 (Notice to Shareholder of Undistributed Long-Term Capital Gains) is a legitimate form used by regulated investment companies and real estate investment trusts to report undistributed capital gains and associated tax to shareholders. A claimed amount must be tied to an actual investment and form.

The scam: Promoters on social media and through online ads are coaching people to file fabricated Form 2439 claims for funds they never invested in, reporting fictitious undistributed capital gains tax credits. The claimed credits offset their tax liability dollar-for-dollar, generating large refunds.

Why reconciliation matters: Form 2439 is a specialized information return. Reconcile the issuer, investment, reported gain, tax paid, and actual form before claiming any credit. The IRS has publicly identified abusive Form 2439 claims and can hold or examine questionable refunds.

Red flags:

• Someone offers to "get you a tax credit" using Form 2439 when you do not own shares in a RIC or REIT that issued the form
• A preparer includes Form 2439 on your return without explaining it
• You see social media posts about "free money" from undistributed capital gains credits

Consequences: A knowingly fraudulent claim can raise the civil-fraud penalty under IRC Section 6663, interest, refund review, and potential criminal provisions. The actual civil or criminal result depends on the return, conduct, procedures, and proof.

Records check: A Form 2439 credit requires an actual qualifying investment and issuer form. If a proposed claim does not match your investments and records, do not authorize the filing; request the source documents and explanation. An IRS notice should be reviewed under its stated response procedure and deadline.

7. Bogus "Self-Employment Tax Credit" Promotions

Promoters market a so-called "Self-Employment Tax Credit" that supposedly pays fixed refunds. No credit by that name exists. The promotions misstate the limited 2020 and 2021 Credits for Sick Leave and Family Leave for certain self-employed individuals. Any Form 7202 position must satisfy the law for the applicable year and the claimant's actual eligibility records.

Red flags: social media posts promising a fixed dollar amount to every self-employed person, promoters charging a percentage of the refund, and preparers who file the claim without asking about your actual 2020-2021 facts.

Consequences: The IRS is freezing and reviewing these refund claims. Filers face repayment, accuracy-related or civil fraud penalties, and interest - and the promoter's fee is gone either way.

8. Ghost Tax Preparers

A ghost preparer is a paid preparer who refuses to sign the return or include a required Preparer Tax Identification Number. That conduct violates the paid-preparer identification requirements and warrants review of every return entry and source document; it does not by itself establish which other violations occurred.

Warning signs:

• The preparer insists on paper filing only (to avoid the electronic signature requirement)
• The preparer refuses to provide a PTIN
• The preparer directs your refund to their bank account rather than yours
• The preparer charges a fee based on a percentage of your refund
• The preparer cannot or will not explain the deductions and credits on your return

NJ-specific note: Verify the preparer's actual federal PTIN and any claimed professional credential through the issuing authority. State and federal registration or licensing rules differ by credential and jurisdiction; a PTIN is not a professional license or a guarantee of return quality.

Protection: Always verify your preparer has a PTIN. Ask for a copy of the return before filing and review it for accuracy. Never allow a preparer to direct your refund anywhere other than your own bank account. The IRS Choosing a Tax Professional (opens in a new tab) page links to its current federal preparer directory and credential guidance. For professional preparation, see our tax preparation services.

9. Non-Cash Charitable Contribution Schemes

These schemes inflate deductions for donated property. Promoters arrange for taxpayers to acquire an asset (art, collectibles, or other property interests) at a low price, obtain an inflated appraisal, donate the asset, and claim a charitable deduction worth several times what was actually paid. The donation may be real; the valuation is not.

Red flags: a promoter who supplies the appraiser, promised deductions that are multiples of your cost, and pressure to complete the acquisition-and-donation cycle quickly.

Protection: Non-cash contributions over $500 require Form 8283, contributions over $5,000 generally require a qualified appraisal, and the IRS actively challenges inflated valuations with accuracy and appraiser penalties (IRC Sections 6662 and 6695A). If the tax deduction is the product being sold, walk away. Cash donations of $250 or more still require a contemporaneous written acknowledgment from the charity.

10. Overstated Withholding Schemes

A scheme circulating heavily on social media: file a return with a fabricated Form W-2, 1099, or substitute form (such as Form 4852) showing large fictitious income and even larger fictitious federal withholding, then claim the excess withholding as a refund. Variants use fake household-employee wages or fabricated Schedule H entries.

Why it fails: The IRS matches withholding claims against employer and payer filings before releasing refunds. Returns with unverifiable withholding are frozen, refunds are held, and the filer faces the $5,000 frivolous-return penalty under IRC Section 6702, accuracy or fraud penalties, and potential criminal exposure.

Protection: Report only withholding shown on genuine forms actually issued to you. If a preparer or online coach suggests inventing withholding, that is fraud, not a loophole.

11. Spear-Phishing and Malware Targeting Tax Professionals

This one affects you indirectly. Scammers target CPAs, enrolled agents, and tax attorneys with sophisticated spearphishing attacks designed to steal client data, including Social Security numbers, financial information, and prior-year returns. A successful breach at your preparer's office can result in fraudulent returns filed in your name.

What tax professionals are seeing in 2026:

• Emails impersonating IRS e-Services requesting credential verification
• Fake Intuit/Drake/Lacerte login pages designed to harvest practitioner portal credentials
• Ransomware attacks encrypting client files with demands for cryptocurrency payment
• Deepfake phone calls from "clients" requesting emergency return information

Security questions: Ask how the provider transmits, stores, accesses, retains, and disposes of taxpayer data and whether its written information-security program addresses applicable requirements. No single security control or insurance policy guarantees protection.

12. Aggressive Offer in Compromise Mills

An Offer in Compromise (OIC) is a legitimate IRS program allowing taxpayers to settle tax debt for less than the full amount owed. Acceptance is the exception, not the rule: the IRS FY2024 Data Book reports 33,591 offers received and 7,199 accepted - about 21.4%, with $163.4 million in accepted offers - and the IRS FY2025 collection statistics published since show 38,797 offers proposed and 5,464 accepted (about 14%), totaling $98.1 million. Verify the current Data Book figures before relying on any acceptance rate. OIC mills advertise on TV and radio with claims like "settle your tax debt for pennies on the dollar" and charge thousands in upfront fees to submit applications that have no realistic chance of acceptance.

Reality check:

• An offer in compromise may rest on doubt as to collectibility, doubt as to liability, or effective tax administration
• Reasonable collection potential measures ability to pay and is central to doubt-as-to-collectibility offers; in most cases, the IRS will not accept less than reasonable collection potential
• Asset equity or stable income informs that calculation but does not by itself decide eligibility under every offer basis
• A marketing company may collect a fee without providing the scope or follow-through the taxpayer expected; review the written engagement, exclusions, refund terms, and representative credentials

Screening: The IRS Offer in Compromise Pre-Qualifier (opens in a new tab) is an initial educational screen, not an eligibility decision. Compare the actual offer basis, collection facts, representative credentials, written scope, fees, and alternatives before authorizing work.

NJ-Specific Scam Warnings

NJ Division of Taxation Phishing

The New Jersey Division of Taxation has issued alerts about emails and text messages impersonating the Division, including messages asserting tax due or offering a benefit through a link. Verify an unexpected request through the Division's official website and contact information.

The NJ Division of Taxation generally provides official notice via US Mail. It will not unexpectedly request Social Security numbers, bank details, or other sensitive information through unsolicited email or text - treat any such request as a scam. The Division does maintain official email channels and may respond electronically after you initiate contact, so verify anything unexpected directly through nj.gov/treasury/taxation before responding, and report suspected phishing through the Division's current scam-reporting guidance (opens in a new tab).

NJ Identity Theft Procedures

If you are a victim of NJ tax identity theft:

1. File a police report with your local NJ police department
2. Submit NJ Form IDT-100 (Identity Theft Declaration) (opens in a new tab) to the NJ Division of Taxation
3. File IRS Form 14039 if the theft is also tax-related federally (a federal return was filed with your SSN) or the IRS instructs you to file it; otherwise request an IP PIN as the federal preventive step
4. Follow the Division's published identity-theft procedures (opens in a new tab) - the electronic Form IDT-100 process is the Division's intake for identity-theft cases
5. Place a fraud alert or credit freeze with all three credit bureaus
6. File early in subsequent years - the NJ system does not have an equivalent of the federal IP PIN

NJ ANCHOR Program Scams

The ANCHOR program (Affordable New Jersey Communities for Homeowners and Renters) provides property tax relief for NJ residents. Scammers exploit ANCHOR by:

• Sending fake ANCHOR approval emails with links to "claim your benefit"
• Calling homeowners claiming their ANCHOR application was "incomplete" and requesting SSN verification
• Creating fake ANCHOR application websites that harvest personal information

Protection: The ANCHOR application is filed through the NJ Division of Taxation website (nj.gov/treasury/taxation/anchor) or by phone. The Division will never email you to request personal information. Your ANCHOR benefit is paid by check or direct deposit to the account you specified on the application - it is never distributed through a link in an email.

How to Report a Tax Scam

Frequently Asked Questions

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Disclaimer: This post provides general tax information and is not a substitute for personalized tax advice. Consult a qualified tax professional for advice specific to your situation.

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