Issue Number: Tax Tip 2026-58Keep an eye out for common charitable contributions scams Scammers have been known to take advantage of people’s kindness and generosity. Whether it’s creating a fake charity or encouraging the use of inaccurate estimates for donated property, taxpayers should be aware and proceed with caution. Let’s explore these common scams and schemes around charitable donations that were part of the 2026 Dirty Dozen list. Fake charities
After a disaster or tragedy, scams of all kinds often increase. A common one is when fraudsters create fake charities to collect donations and personal information. A few things to keep in mind before donating:
- Verify if the organization is a qualified tax-exempt organization. Donations to individuals are not deductible. Taxpayers can use the Tax Exempt Organization Search tool on IRS.gov to verify whether an organization is eligible to receive tax-deductible contributions.
- Taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return if they itemize deductions. Taxpayers who don’t itemize still may be able to deduct cash contributions. It’s important to know donations only count if they go towards a qualified tax-exempt organization according to the IRS.
- Keep receipts and documentation of all donations, whether cash or other property.
Non-cash charitable contribution schemes
This scheme isn’t directly related to disasters but is still one that taxpayers need to be mindful of. Some schemes involve inflated appraisals of donated property such as syndicated conservation easements, art, or other assets. If a taxpayer donates property or goods, they need to keep good records and accurately document the fair market value. Don’t be tempted by promises to eliminate or substantially reduce tax liability. Reporting a suspected scam
Taxpayers and tax professionals can report suspected tax fraud, scams, identity theft, or other tax-related wrongdoings to the IRS. Tips can be submitted confidentially using a smartphone, tablet, or computer at IRS.gov/submitatip. It consolidates IRS fraud-reporting options into one location and routes tips to the appropriate IRS office. If a taxpayer thinks their tax identity has been compromised, they should visit IRS.gov/idtheft for steps to protect their account. More information
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