IRS Warns of Viral Tax Hacks and Refund Scams in 2026

Agency cautions taxpayers about bogus Form 2439 claims, social media misinformation, and other schemes that could delay refunds

Published on Mar. 10, 2026

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The IRS is warning taxpayers about a rise in viral 'tax hacks' and new refund scams for the 2026 tax season, including fake Form 2439 claims related to undistributed long-term capital gains and social media misinformation that could lead to filing returns with false information and ineligible credits. The average federal tax refund is up 10.6% so far this year, but the IRS says taxpayers who fall for these schemes could face refund delays, audits, penalties, and other enforcement actions.

Why it matters

With the average tax refund on the rise, scammers are looking to take advantage of taxpayers seeking bigger payouts. These fraudulent schemes not only put individuals at risk, but also strain IRS resources and undermine the integrity of the tax system. Raising awareness of these tactics is crucial to protecting taxpayers and maintaining the public's trust in the tax filing process.

The details

The IRS has identified an uptick in overstated or fabricated claims tied to undistributed long-term capital gains via Form 2439, which allows shareholders of certain investment funds or real estate trusts to claim a refundable credit for taxes paid on undistributed gains. Scammers are creating fake claims, sometimes linked to legitimate organizations, to try to generate improper refunds. The IRS is also warning about other common tax scams, including viral 'tax hacks' on social media, bogus self-employment tax credits, inflated charity appraisals, and overstated withholding schemes.

  • So far this year, the average federal income tax refund is $3,742 through Feb. 27, up 10.6% from the same time frame a year ago.
  • The IRS has received nearly 51.5 million income tax returns, down 1.7%.
  • The IRS has issued nearly $136.6 billion in tax refunds, up 9.4%.

The players

IRS

The Internal Revenue Service, the U.S. federal agency responsible for administering and enforcing federal tax laws.

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What’s next

The IRS will continue to closely review claims related to the 'self-employment tax credit' and other suspicious deductions and credits, and may hold up refunds while verifying the legitimacy of taxpayer filings.

The takeaway

Taxpayers should be wary of viral 'tax hacks' and other dubious claims circulating on social media, and instead rely on trusted sources and qualified tax professionals when determining their eligibility for credits and deductions. Falling for these scams can lead to significant delays, audits, penalties, and other legal consequences.