You can’t escape news about artificial intelligence in today’s world, as rapid technology advancements have everyone discussing how AI is reshaping life as we know it.
Unfortunately, the IRS has a harsh warning about the potential impact of AI on the nation’s tax system and on individual taxpayers. And it’s a warning everyone needs to be aware of.
The IRS addresses AI risks for the first time
For the first time in history, the IRS addressed AI on its Dirty Dozen warning list, which was released at the beginning of March.
The Dirty Dozen list is described by the IRS as a “list of tax scams for 2026 that threaten the tax and financial information of taxpayers, businesses, and tax professionals.”
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The IRS releases the Dirty Dozen to warn taxpayers about scams they need to be vigilant about. “For more than two decades, the IRS has used the Dirty Dozen list to flag emerging scams that taxpayers should watch out for,” IRS Chief Executive Officer Frank J. Bisignano explained.
However, the list has a notable new entry this year. The number two scam highlighted in the report is AI-enabled IRS impersonation via phone calls.
Why AI poses a unique threat to the IRS and taxpayers
The IRS highlighted multiple ways in which AI could pose a serious threat to taxpayers, including that artificial intelligence could be used to impersonate the IRS through:
- Robocallers
- Voice mimicry
- Spoofed caller ID
“Phone scams continue to evolve, including calls that use computer-generated tactics and spoofed caller ID to appear legitimate,” the warning read.
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Tax-scam experts warn that AI is number-one culprit
In light of the new IRS alert on AI-enabled scams, experts weighed in on how the technology can be used not just to impersonate the IRS via phone calls, but also to defraud taxpayers and the tax collection agency in multiple ways.
Nina Tross, the liaison for tax advocacy at the National Society of Tax Professionals, stated in an interview that “AI is definitely the number one culprit” for perpetrating tax scams, CFO Dive reported.
Related: IRS issues stern warning for taxpayers claiming 2 popular credits
Bad actors also use AI to gather information from taxpayers and corporations, Tross said.
This information can then be used to file “highly detailed” fraudulent tax forms that result in improper payments to scammers and serious long-term financial consequences for those whose information was stolen.
Do this to protect yourself from tax fraud
So, what can you do to avoid getting sucked into an AI-enabled scam that puts your tax information at risk?
The IRS provides a reminder and some suggestions on the Dirty Dozen List write-up, where it explains the threat of AI scams.
“The IRS reminds taxpayers that it generally contacts taxpayers by mail first and does not leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest. Taxpayers should not rely on AI-generated responses to complex tax questions, and they should verify any calculations or information provided by artificial intelligence.”
If you receive a phone call purported to be from the IRS, the best thing to do is hang up. You can call the IRS back yourself later if you want to, by looking up the telephone number for the agency on its official website.
If anyone you don’t know calls you to ask about your confidential tax information, you should also hang up.
Especially over the phone, no one except a trusted accountant or tax professional you hire and contact yourself should be given any information they could use to steal your identity.
It’s always better to err on the side of caution and assume these unsolicited calls are a scam until proven otherwise.
Related: New IRS rule could lead to big problems getting tax refund checks
