IRS "Dirty Dozen" Includes New Capital Gains Scheme for 2026

The IRS has recently released its "dirty dozen list for the 2026 tax year--with one new item related to false claims regarding undistributed long-term capital gains. According to the IRS, fabricated or inflated filings of Form 2439 (Notice to Shareholder of Undistributed Long-Term Capital Gains) are on the rise. This form allows certain shareholders of real estate trusts and certain investment funds to claim a refundable tax credit for taxes they have paid on undistributed capital gains. Some of these false claims are reportedly tied to legitimate and well-known organizations. Schemes also involve claims related to organizations that are not legitimate real estate trusts or investment funds. This listing replaces a previous dirty dozen listing on concerns over the fuel tax credit. For more information on the rules governing long-term capital gains, visit Tax Facts Online. Read More: Link to Q8631.