IRS Dirty Dozen: Beware these 12 scams
The IRS reminds taxpayers to beware of scams and frauds that put them at risk along with your personal information. Each year, the IRS publishes the top 12 scams known as the Dirty Dozen. The scams range from the simple inflation refund technical treatment on tax shelters.
Following is a summary of the Dirty Dozen this year:
1) Phishing: Taxpayers should be wary of emails or fake websites looking to steal personal information. The IRS will never initiate contact with taxpayers via e – mail about a bill or refund. Do not click on links in these e – mails claiming to be from the IRS.
2) telephone scams: The phone calls from criminals posing as IRS agents remain a threat to taxpayers.
3) Identity Theft: Taxpayers should be alert to the tactics aimed at stealing their identities . The IRS continues to pursue the criminals who present fraudulent statements using the social security number of another person.
4) Tax Preparer Fraud: Most tax professionals provide honest and high quality service. However, there are some dishonest preparers who cheat their customers . These preparers perpetrate fraud reimbursement, identity theft and other scams that hurt taxpayers.
5) Charitable Organizations fraudulent: The groups masquerading as charities solicit donations from unsuspecting taxpayers. People who make donations, should take a few extra minutes to make sure your money goes to legitimate charitable organizations.
6) Claims inflated refunds: Taxpayers should be alert when someone they promised inflated refunds . Some signs of this include preparers that ask customers to sign a blank return or those that promise a large refund before checking records of taxpayers.
7) excessive claims for business credit: Taxpayers should avoid unduly claim the tax credit for fuel use . Most taxpayers are not entitled to this credit, as the law generally limits it to commercial use off the road, including agriculture.
8) Deductions falsely inflated statements: Taxpayers should avoid the temptation to falsely inflate deductions or expenses on their tax returns. Taxpayers do this to pay less than what they owe or receive a larger refund than they should receive.
9) Forgery of income to claim credits: Scammers can convince taxpayers to invent income to qualify for tax credits erroneously , as the Earned Income Tax Credit (EITC).
10) Frivolous Tax Arguments: Some taxpayers using frivolous tax argumentsto avoid paying taxes. The promoters of these frivolous schemes encourage taxpayers to make extravagant claims about the legality of paying taxes. These claims are repeatedly thrown out in court.
11) abusive tax shelters: Taxpayers who use abusive tax shelters do to avoid paying taxes. Most taxpayers pay their fair share and everyone should be aware of people selling tax shelters that sound too good to be true.
12) Tax evasion abroad: It ‘s a bad idea to hide money and income abroad . Those involved in tax evasion abroad are better served by voluntarily disclose their money abroad and taking advantage to meet their tax filing responsibilities.