The 2026 IRS Dirty Dozen Is Out. Three of Them Are Targeting Your Business.

The IRS publishes this list every year. Most people ignore it until it’s too late.

Every spring, the IRS releases its “Dirty Dozen”—a list of the twelve most dangerous tax scams making the rounds. For 2026, three items on that list are aimed squarely at small business owners.

This isn’t a warning about strangers emailing you about Nigerian wire transfers. These are sophisticated promotions that reach people through social media, referrals, and sometimes their own tax preparers. By the time you realize you’ve been sold something fraudulent, the IRS has already flagged your return and you’re the one holding the penalty.

Here’s what’s circulating right now.

Scam #1: The “self-employment tax credit”

This one is everywhere on social media. Promoters claim there’s a broad “self-employment tax credit” worth thousands of dollars—just file the right form and collect a refund.

There is no such credit.

What actually exists is a narrow COVID-era provision (for sick and family leave, 2020–2021) that some promoters have stretched into a general self-employment benefit for any year. The IRS has seen a surge in fraudulent claims using Form 7202 tied to these promotions.

If someone is telling you that you qualify for a large self-employment refund you’ve never heard of before, you need to ask them to point to the exact Internal Revenue Code section. If they can’t—or they pivot to telling you the IRS just “hasn’t widely publicized it”—walk away. You will owe the money back plus interest plus a 20% accuracy penalty, minimum. The preparer walks away clean.

Scam #2: The fuel tax credit

The Section 34 fuel tax credit is real. It’s also very narrow. It applies to off-highway business use of fuel—farming, certain construction operations, aviation. It does not apply to driving vehicles on public roads, running generators, or most standard business fuel use.

Promoters have been coaching business owners to claim fuel credits they don’t qualify for. The IRS specifically flagged this on the 2026 Dirty Dozen. These claims are getting scrutinized.

If you run equipment off public roads and use substantial amounts of fuel in that process, the credit is worth investigating properly. If your accountant is telling you to claim it for routine vehicle and utility costs, get a second opinion. The disqualified amount gets recaptured, and the civil fraud penalty runs up to 75%.

Scam #3: Ghost preparers

A “ghost preparer” prepares your return but refuses to sign it. They’ll give you the completed return, tell you to file it yourself, and pocket their fee with no accountability.

Here’s why that matters: every paid preparer is legally required to sign returns they prepare and include their PTIN (Preparer Tax Identification Number). If they’re not signing, they know the return has problems. If you file it, you’re the one legally responsible for everything on it—not them.

Ghost preparers often promise large refunds based on inflated deductions or fabricated credits. After you file, they’re unreachable. The IRS audits your return, disallows the deductions, and assesses interest and penalties against you.

Before working with any preparer: verify their PTIN at irs.gov/taxpros. Make sure they sign what they file. If they won’t, find someone else.

The ERC hangover is still going

The Employee Retention Credit mills didn’t make the Dirty Dozen this year, but the audits from prior ERC claims are ongoing. If you claimed the ERC through a third-party promoter and haven’t been contacted yet, that doesn’t mean you’re clear. The IRS has a multi-year window, and they’ve been working through this backlog systematically.

If you claimed the ERC and have concerns about whether the underlying eligibility analysis holds up, now is the time to review it—before a notice arrives. See what to do when you get an ERC audit notice for where to start.

The pattern across all of these

Every one of these scams shares a structure: someone sells you on a tax benefit that sounds large, requires minimal documentation, and that you’ve never heard your regular accountant mention. The promoter collects a fee upfront, often a percentage of the claimed refund. When the IRS comes back, you’re the taxpayer of record.

Bluntly: if a tax strategy is being promoted on TikTok or by someone you met at a networking event, treat it as unverified until a credentialed professional reviews the actual law.

The IRS first-time penalty abatement and other relief options exist, but they don’t undo the tax owed. See first-time penalty abatement for what that actually covers.

This post is for informational purposes only and does not constitute tax or legal advice. Tax rules change; always verify current law with a qualified tax professional. Geiger Tax & Accounting, Amityville, NY — (631) 532-5622 — info@geigertax.com.