June 2026 - Monthly Newsletter

In this month's newsletter, we look at this year's IRS Dirty Dozen list of common tax scams.

Key Upcoming Federal Filing Due Dates:

June 15, 2026 - initial deadline for taxpayers living outside the U.S. to file their federal income tax return, unless an extension request is filed.

Please note that June 15th is a filing deadline. The deadline for the payment of tax, if due, was April 15th.

IRS Dirty Dozen List - 2026

On March 5, 2026, the IRS announced its annual Dirty Dozen list of tax scams for 2026 that threaten the tax and financial information of taxpayers, businesses, and tax professionals.

The Dirty Dozen is part of a broader campaign conducted through the Security Summit, a partnership among the IRS, state tax agencies, and the nation’s tax industry, and reinforced by outreach efforts tied to National Slam the Scam Day on March 5. These initiatives educate taxpayers about identity theft schemes and other forms of fraud, particularly during filing season.

A notable change to this year’s list is the addition of abusive undistributed long-term capital gains claims as item #6, replacing prior fuel tax credit concerns, as the IRS sees an increase in overstated or fabricated claims tied to Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains. The IRS advises all taxpayers to remain cautious year-round, as criminals will always be on the lookout for new ways to obtain money, personal identifiable information, and data.

Here is this year’s list:

1. IRS impersonation by email and text (phishing + smishing). Scammers send emails, direct messages (DMs), and texts that appear to be from the IRS, often using alarming language and QR codes that direct taxpayers to fake IRS websites to “verify” accounts, enter personal information, or claim refunds. The IRS reported over 600 social media impersonators during fiscal year 2025.

2. AI-enabled IRS impersonation by phone (robocalls, voice mimicry, spoofed caller ID). Phone scams continue to evolve, including calls that use computer-generated tactics and spoofed caller ID to appear legitimate.

3. Fake charities. Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations and personal information.

4. Misleading tax advice on social media. Viral “tax hacks” can push taxpayers to file returns with false information or claim credits they don’t qualify for, leading to refund delays, audits, penalties, or worse.

5. Identity theft involving IRS Online Account access. Criminals may attempt to use stolen personal information to gain unauthorized access to a taxpayer’s IRS online account or may pose as helpers to collect sensitive information during account setup.

6. Abusive undistributed long-term capital gains claims. The IRS identified an increase in the abuse of Form 2439, which allows shareholders of certain investment funds or real estate trusts to claim a refundable credit for taxes paid on undistributed capital gains. Identified schemes involve overstated or fabricated Form 2439 claims, including claims tied to organizations that are not legitimate investment funds or real estate trusts.

7. Bogus “Self-Employment Tax Credit” promotion. Scammers use misleading claims about a broad “self-employment tax credit” to encourage inaccurate filings and generate improper refunds.

8. Ghost preparers. A “ghost” preparer prepares a return but refuses to sign it and/or refuses to include a Preparer Tax Identification Number (PTIN). When a preparer refuses to sign or provide a PTIN, that is a major red flag; the taxpayer is legally responsible for what is filed.

9. Non-cash charitable contribution schemes. These involve inflated appraisals of donated property using syndicated conservation easements or art. Promoters often promise to eliminate or substantially reduce tax liability.

10. Overstated withholding schemes (fabricated wage/withholding data). Scammers encourage taxpayers to inflate withholding amounts (sometimes described as “other withholding”) to manufacture a larger refund by reporting zero or little income on incorrect forms. The IRS may delay processing while it verifies wages and withholding against third-party records. Inaccurate claims can lead to penalties and enforcement action.

11. Spear-phishing and malware campaigns targeting tax professionals. Tax professionals and businesses remain targets of “new client” or “document request” emails that deliver malicious links or attachments to steal client data or access systems.

12. Aggressive or misleading Offer in Compromise marketing (“OIC mills”). The Offer in Compromise program can help certain eligible taxpayers resolve tax debt when they are unable to pay in full, but “OIC mills” often overpromise results and charge high fees to taxpayers who don’t qualify. Taxpayers can check eligibility using free IRS tools to avoid high-pressure sales tactics.

This month's expat tax blogs.

• EXITING THE US AND ABANDONING YOUR GREEN CARD – A CASE STUDY (Jun 03, 2026) – In this blog, we review the tax and reporting implications of abandoning one’s green card. We then describe how our firm can help you through the process.
• COMPARING THE US/UK APPLICATIONS OF THE TREATY SAVING CLAUSE (May 11, 2026) – Cross border taxpayers navigating the U.S.–UK Income Tax Treaty often assume that treaty benefits operate symmetrically. In most areas they do—but not when it comes to the saving clause, a provision that allows each country to “save” its right to tax its own residents and citizens as if the treaty did not exist.
• MOVING TO THE US? HERE’S WHAT YOU NEED TO KNOW (Apr 30, 2026) – If you’re planning a move to the U.S., understanding the tax landscape - and taking steps before you arrive - can save you significant money, stress, and compliance headaches.