IRS flags rising Form 2439 scams
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IRS flags rising Form 2439 scams
2026-05-22
The IRS is reporting a sharp increase in fraudulent claims involving Form 2439 (Notice to Shareholder of Undistributed Long-Term Capital Gains).
Form 2439 allows shareholders of certain investment funds and REITs to claim a refundable credit for taxes already paid, but this year the IRS has identified:
- ✔️ Fabricated or overstated claims
- ✔️ Credits tied to nonexistent or illegitimate entities
- ✔️ Misuse of well-known organization names
The risk: Improper claims can result in
- ⚠️ Refund delays
- ⚠️ IRS audits
- ⚠️ Penalties or enforcement actions
Other abusive tax schemes on the IRS radar
- Fake charities: Only donations to IRS qualified organizations are deductible.
- Overstated withholding claims: Inflated withholding can trigger delays and penalties.
What you should do:
- Verify the legitimacy of any Form 2439 claims
- Maintain thorough documentation
- Consult trusted professionals before filing
At My Accounting Now, we help individuals and businesses stay compliant, avoid penalties, and navigate IRS scrutiny confidently.
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