Each year, the IRS creates a list of the top tax scams it has seen throughout the year.
This year’s “Dirty Dozen” are:
- Phishing
Taxpayers should be wary of fake e-mails and website looking to steal personal information. - Phone Scams
Taxpayers should be aware of callers that are impersonating IRS agents and threatening taxpayers with arrest, deportation, unpaid taxes, and more. - Identity Theft
Especially during tax season, there are criminals that file fraudulent returns under another person’s Social Security number. - Return Preparer Fraud
Tax season brings about con artists that perpetuate return fraud, identity theft, and scams to taxpayers. - Fake Charities
There are groups that disguise themselves as charities in hopes of collecting donations for their benefit. Taxpayers should pay close attention to the charity’s name and status before donating. The IRS has tools that will help. - Inflated Refund Claims
Taxpayers should always be cautions of a promised “big refund”, especially when your records has not been reviewed. - Excessive Claims for Business Credits
Taxpayers should avoid improperly claiming business credits. - Falsely Padding Deductions on Returns
Taxpayers should avoid falsifying deduction such as charitable contributions and business expenses. - Falsifying Income to Claim Credits
Taxpayers should not create false income to quality for a tax credit; this can lead to back taxes, penalties, and, in some cases, criminal prosecution. - Abusive Tax Shelters
Taxpayers should avoid using the use of phony tax shelters to avoid paying what is owed. - Frivolous Tax Arguments
Taxpayers should avoid outlandish and unreasonable claims to avoid paying tax. - Offshore Tax Avoidance
Taxpayers should avoid hiding money in unreported offshore accounts.
Read the full article. For assistance in tax preparation, please contact Brian McFarren.