IRS Issues Harsh Warning About AI And Taxes

Artificial intelligence is dominating headlines as rapid technological advances continue to reshape everyday life. But alongside its benefits, AI is also creating new risks—especially when it comes to taxes.

The IRS is now sounding the alarm about how this technology could be exploited to target taxpayers.

IRS Adds AI Threats to “Dirty Dozen” List

For the first time, the IRS has included AI-related scams in its annual “Dirty Dozen” list, released in early March. This list highlights the most dangerous tax scams expected to impact taxpayers, businesses, and tax professionals in 2026.

According to IRS leadership, the list has been used for over two decades to spotlight emerging threats. This year, however, a major new concern stands out: AI-powered impersonation scams. These schemes, ranked as the second most significant threat, involve criminals posing as IRS agents through increasingly sophisticated methods.

How AI Is Being Used in Tax Scams

The IRS warns that scammers are leveraging AI in several ways to appear legitimate, including:

• Robocalls that sound realistic
• Voice-cloning technology to mimic officials
• Spoofed caller IDs that display trusted numbers

These tactics make it much harder for taxpayers to distinguish between real and fraudulent communications.

Experts Say AI Is Fueling Fraud

Tax professionals are also raising concerns. Nina Tross of the National Society of Tax Professionals described AI as a leading driver of modern tax scams.

Scammers are not only impersonating the IRS—they’re also using AI to gather personal and financial data. With enough information, they can file highly convincing fraudulent tax returns, potentially leading to stolen refunds and long-term financial damage for victims.

How to Protect Yourself

The IRS emphasizes a few key steps to avoid falling victim to these scams:

• The IRS typically initiates contact through mail—not phone calls
• It does not leave urgent or threatening prerecorded messages
• It will not demand immediate payment or threaten arrest over the phone

If you receive a suspicious call claiming to be from the IRS, hang up immediately. If needed, contact the IRS directly using the official number from its website.

Never share sensitive tax or personal information with unknown callers. Only provide such details to a trusted accountant or tax professional you have personally chosen to work with.

When in doubt, assume unsolicited calls are scams until proven otherwise.

 

Source: TheStreet