IRS warns of 2026 tax scams: What taxpayers should know

Tax scams rarely stay the same for long. Each filing season brings new tactics designed to trick taxpayers into revealing personal information or claiming refunds they are not entitled to receive. In recent years, fraud has affected unemployment systems, stimulus payments, and identity theft took many taxpayers by surprise. Some people didn’t realize the problem until their legitimate tax returns were rejected or unexpected tax forms arrived in the mail.

Two years later promoters marketed confusing loans Giving Employee Retention Credits to businesses that don’t qualify, collecting fees for making improper claims, etc. By 2025, misleading leads were widely spread on social media, encouraging taxpayers to misuse forms like 4136 or alter wage information through consumer tax software.

Each of these scams is based on confusion about tax rules and filing systems. Understanding how they work can help you spot red flags before submitting your feedback this year.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent safety alerts and special deals straight to your inbox. You’ll also get instant access to my Ultimate Scam Survival Guide – free when you join my channel CYBERGUY.COM bulletin.

IRS WARNING TAXPAYERS AGAINST NEW POSTAGE REFUND SCAMS

2021 tax scams: Unemployment fraud and stimulus payment theft

In 2021, identity theft linked to unemployment programs has led to widespread tax problems. Criminals used stolen Social Security numbers to request benefits through government systems. Because unemployment income Because it was taxable, victims were sent Form 1099-G notices for payments they never received. The IRS advised taxpayers not to report fraudulent income and to contact the government agency that filed the tax to correct records.

Incentive payments were also targeted. Fraudsters filed premature tax returns using stolen personal data to claim Recovery Rebate Credits or redirect refunds. When legitimate applicants later submitted their returns, some were rejected because a return linked to their Social Security number had already been processed. Federal agencies, including the FBI, have warned of high levels of unemployment fraud during this period. The IRS also encouraged taxpayers to sign up for an Identity Protection PIN, which adds an extra layer of verification when filing.

Worried your SSN might have been stolen? Many tax fraud cases begin with data obtained from breaches. You can run a free scan with our pick for the best Identity Theft Protection to check if your information appears in known data leak records. The scan looks for matches linked to your email address and shows the results in real time. See my tips and top picks for Best Identity Theft Protection at: cyberguy.com

2023 tax scam alert: Ghost preparers file fake returns

The IRS later flagged an increase in returns prepared by so-called ghost preparers. These individuals charge fees to prepare tax returns but refuse to sign them or include a valid Preparer Tax Identification Number. Under federal tax rules, anyone who pays to prepare the return must sign the return. When a preparer fails to do this, the taxpayer, not the preparer, remains responsible for the filing.

In many flagged cases, ghost preparers inflated tax credits, fabricated income figures or altered withholding amounts to obtain larger refunds. Some charged fees based on the size of the refund, encouraging them to make dubious claims rather than comply with tax rules.

2025 tax scams: Social media tax ‘attacks’ and improper filings

By 2025, misleading tax advice began to spread widely on short video platforms and social media. Some posts encouraged people to fill out Form 4136 to claim fuel tax credits for gasoline used in personal vehicles. The IRS says this credit only applies to certain business and off-highway uses, not daily driving. Improper completion of the form may trigger an IRS investigation.

Other posts instructed taxpayers to change fee or withholding figures in consumer tax software to inflate refund amounts. The IRS has repeatedly warned that taxpayers are responsible for the accuracy of returns, regardless of where the advice comes from. Providing false income information or claiming unsubsidized loans can delay repayments and potentially lead to penalties.

ELON MUSK CLAIMS $50 BILLION FRAUD IN TREASURY AFTER JUDICIAL BLOCK DOGE AUDIT

Identity theft and fraudulent tax returns remain a top concern for the Internal Revenue Service as criminals exploit confusion around loans and filing rules. (Andrew Harrer/Bloomberg via Getty Images)

2026 IRS warning: Tax fraud expected this filing season

The IRS recently released its 2026 “Dirty Dozen” list of tax scams that it expects to circulate throughout the filing season. Phishing and text message scams continue to be among the most common threats. Scammers often impersonate the IRS or tax software companies and claim a refund issue or account issue in order to collect Social Security numbers, bank details, or login credentials.

The agency emphasizes that it does not initiate communications via email, text message or social media to request sensitive information. The 2026 list also includes ghost preparers and misleading tax advice shared online; This includes content that encourages inappropriate credit requests. Identity theft refund fraud remains part of the enforcement picture as criminals file returns using stolen data before legitimate taxpayers do.

How do you protect yourself from tax fraud?

A few simple habits can reduce your risk during filing season.

1) Monitor your personal data and credit activity

Identity theft refund fraud remains a significant concern. Criminals sometimes prepare tax returns using stolen personal information before the legitimate taxpayer provides their own information. Because many tax evasion cases Start with personal data exposed to breaches; Keeping track of where your information appears online can help you catch warning signs sooner.

Identity theft services scan known data breach records for matches tied to your email address, Social Security number, and other identifiers.

These services also monitor credit files at the three major U.S. credit bureaus and alert you to new accounts, challenging inquiries, or other changes to your credit report. If suspicious activity occurs, members receive real-time alerts as soon as it is detected.

See my tips and top picks for Best Identity Theft Protection at: cyberguy.com.

2) Only work with legitimate tax preparers

Anyone paying to prepare a tax return must sign the return and include a valid Preparer Tax Identification Number. Avoid preparers who promise unusually large refunds or refuse to sign your return.

3) Ignore unexpected IRS messages

The IRS does not contact taxpayers via email, text, or social media to request personal information. Messages claiming to be from the IRS requesting sensitive data are often scams.

TREASURY SAYS AVERAGE TAX REFUND REACHED $3,700 IN THE MIDDLE OF FILING SEASON

From stimulus payment theft to ghost preparers, taxpayers face varying fraud tactics each year during tax season. (John Moore/Getty Images)

4) Make your return early

Identity thieves often try to file fake tax returns before the real taxpayer does. Applying early in the season can reduce this risk.

5) Consider the IRS Identity Protection PIN

This six-digit code adds an extra layer of security to your tax return. Without this, criminals cannot file a return using your Social Security number.

What should you do if someone files a tax return in your name?

If the IRS rejects your return because it was already filed using your Social Security number, you may need to file IRS Form 14039, Identity Theft Affidavit. The IRS may also require identification verification before processing your return. In some cases, affected taxpayers are required to submit a paper return while the agency investigates suspected fraud.

Kurt’s important takeaways

Tax scams change every year, but the pattern remains the same. Criminals look for confusion about tax rules, new programs, or trending online advice and use this uncertainty to make fraudulent claims or steal personal information. The best protection is to slow down before filing. Verify tax advice through trusted sources like the IRS, work only with legitimate tax preparers, and keep a close eye on your personal data and credit activity. A little caution during filing season can help avoid months of headaches if your return is flagged for fraud.

Have you ever received a suspicious tax message, received questionable filing advice online, or discovered a tax return filed in your name? Let us know by writing to us. cyberguy.com.

CLICK TO DOWNLOAD FOX NEWS APPLICATION

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent safety alerts and special deals straight to your inbox. You’ll also get instant access to my Ultimate Scam Survival Guide – free when you join my channel CYBERGUY.COM bulletin.

Copyright 2026 CyberGuy.com. All rights reserved.