The IRS’s 2026 Dirty Dozen is a curated list of twelve schemes that are actively harming taxpayers, delaying refunds, and consuming enforcement resources during the current filing season. The list is a summary of patterns the IRS is already seeing at scale in live returns and in the identity theft environment.
This article is Part 2 of a three-part Aura Advisors series on the 2026 Dirty Dozen. See our first article here.
Today, we will focus on mid‑cycle risks that often show up inside the return: misuse of IRS Online Accounts, abusive undistributed long term capital gain claims, bogus “self-employment tax credits,” ghost preparers, and non-cash charitable contribution schemes.
Identity Theft Involving IRS Online Account Access
Criminals use stolen personal data or pose as “helpers” to gain access to taxpayers’ IRS Online Accounts, where they can view records or in some cases manipulate filing or payment flows. The IRS expects taxpayers to set up accounts only through official channels and to be cautious of unsolicited offers to “set up” or “fix” accounts on their behalf.
Never share login credentials, multi factor authentication code, or allow a third party to “remote in” to create or manage your IRS Online Account unless you have independently verified their identity and role and have an explicit engagement in place.
Abusive Undistributed Long Term Capital Gains Claims (Form 2439 Schemes)
This year’s major change is a focus on schemes that misuse Form 2439, which is intended to allow shareholders of certain investment funds or real estate trusts to claim a refundable credit for tax the entity paid on undistributed long term capital gains. Abusive versions involve fabricated or overstated Forms 2439, sometimes tied to entities that are not real funds or trusts, or false claims linked to well-known organizations.
In a compliant case, the credit on Form 2439 reflects actual fund level tax, a genuine ownership interest, and amounts that reconcile with brokerage statements. Credits that cannot be tied to a real investment, verifiable fund, and supportable math are likely to be frozen and disallowed.
Bogus “Self-Employment Tax Credit” Promotions
Promoters advertise a broad “self-employment tax credit” that does not exist in the way it is described, pushing taxpayers to file claims they are not entitled to. Many taxpayers do not qualify for any such benefit, and the IRS has stated that it is closely reviewing these claims, which exposes filers to disallowance and penalties.
Any credit tied to self-employment should trace back to actual self-employment income, statutory authority, and accurate forms, not to generic marketing promises.
Ghost Preparers
A ghost preparer completes a return but refuses to sign it and refuses to provide a Preparer Tax Identification Number.
The preparer may also ask the taxpayer to sign blank or incomplete returns.
The taxpayer remains legally responsible for everything filed, but the person who created the incorrect or abusive return attempts to avoid accountability. A preparer who will not sign is effectively asking you to carry all of the risk for their work.
Non-Cash Charitable Contribution Schemes
Some schemes center on inflated appraisals of donated property, including syndicated conservation easements or artwork, with promoters promising to eliminate or sharply reduce tax liability. These arrangements often involve valuations that are not commercially realistic, and the IRS has been holding refunds and examining returns where non-cash charitable deductions appear inconsistent with underlying economics.
Substantial non-cash donations should be supported by qualified appraisals, complete documentation, and realistic valuation methods that can withstand review.
Key Takeaways
- IRS Online Accounts and Form 2439 credits are legitimate tools that become high risk when access or data is fabricated.
- Bogus “self-employment credits” and ghost preparers convert misinformation into incorrect filings, leaving taxpayers exposed to penalties and enforcement.
- Non-cash contribution schemes often fail on valuation and documentation, not just on intent.
Final Thoughts
The middle segment of the Dirty Dozen highlights schemes that operate inside the tax system, using real forms, real accounts, and real programs as shells for false information. That combination can make abusive positions harder to spot until returns are run through matching and analytics.
If your filings involve IRS Online Accounts, complex investment structures, or significant noncash contributions, it is worth confirming that each position is properly documented, reconciled, and signed by a preparer who is willing to stand behind the work. If you would like a second opinion on these higher risk areas, contact our team to discuss your specific facts.
Aura Advisors is a boutique tax consulting and compliance firm working with start ups, emerging growth companies, and affluent individuals. Making it safer for good people and good companies to continue to do good things.
For More Reading
IRS IP PIN Program: What You Need To Know