8 IRS “Dirty Dozen” Tax Scams Churches and Pastors Should Watch in 2026

The IRS’s annual “Dirty Dozen” warns taxpayers about evolving tax scams. Here are eight schemes that could affect churches, pastors, and ministry employees in 2026—and how to avoid them.

The Internal Revenue Service released its annual “Dirty Dozen” list of tax scams for 2026, warning taxpayers, tax-exempt organizations, businesses, and tax professionals about common schemes that threaten personal and financial information.

IRS officials emphasize that scammers constantly adapt their tactics to exploit taxpayers.

We’ve identified eight of the 12 scams that are relevant to churches and ministries, and pastors and employees.


Stay Informed About Risks Facing Churches


From tax scams to legal compliance issues, church leaders need reliable guidance. A Church Law & Tax membership equips you with expert insights and practical tools to protect your ministry.


They are:

  1. IRS impersonation through emails and texts (phishing and smishing). Criminals send messages that appear to come from the IRS, often using urgent language or QR codes that lead to fake websites designed to steal personal information or install malware.
  2. AI-enabled IRS impersonation by phone. Scammers use robocalls, spoofed caller IDs, and even AI-generated voices to impersonate IRS agents and demand payment or sensitive information. Remember: The IRS contacts taxpayers by mail first and never threatens arrest or demands immediate payment over the phone.
  3. Fake charities. Fraudsters create fake nonprofit organizations, often after disasters or tragedies, to collect donations and personal information from unsuspecting donors.
  4. Misleading tax advice on social media. Viral “tax hacks” may encourage people to claim credits they don’t qualify for or file inaccurate returns, which can result in audits, penalties, or criminal charges.
  5. Bogus “Self-Employment Tax Credit” promotions. Misleading claims about special tax credits encourage taxpayers to file inaccurate returns in hopes of receiving improper refunds.
  6. Ghost tax preparers. Some preparers complete returns but refuse to sign them or provide a Preparer Tax Identification Number (PTIN), leaving taxpayers legally responsible for potentially fraudulent filings.
  7. Non-cash charitable contribution schemes. These involve inflated appraisals of donated property, such as art or conservation easements, to create exaggerated tax deductions.
  8. Overstated withholding schemes. Taxpayers are encouraged to falsely report higher tax withholding amounts on forms to generate larger refunds.

How taxpayers can protect themselves

The IRS advises taxpayers to avoid clicking suspicious links or attachments, hang up on suspicious calls, and verify communications through official IRS channels. Suspicious IRS-related emails or messages should be forwarded to phishing@irs.gov, and individuals who suspect identity theft should visit IRS.gov/idtheft.The IRS also encourages reporting scams or fraudulent tax schemes through its Submit a Tip tool at IRS.gov/SubmitATip, which allows confidential reporting of suspected tax fraud and helps authorities stop scams more quickly.

The editorial team of Church Law & Tax is made up of Matthew Branaugh, attorney-at-law, and Rick Spruill, digital content manager.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

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