Avoiding And Reporting Tax Scams

How to Avoid the “Dirty Dozen” Tax Scams

In the past few years, the IRS has seen a considerable rise in identity theft and refund fraud, as scammers attempt to get your personal information in a fraudulent email, where they claim to be someone from the IRS or the makers of TurboTax Software. In the email, they claim that they need a greater amount of personal information, which according to the Better Business Bureau is a red flag.

People should not answer these sorts of emails, call any phone numbers listed or click on any links provided in the letter. The email can lead you to a fake website that can harm your computer. Taxpayers who are involved in tax scams such as these are liable for any tax due as well as statutory interest.

Here are the “Dirty Dozen” tax scams that people should be careful to avoid:

1.    Identity theft and phishing
2.    Hidden offshore income
3.    Return preparer fraud
4.    Filing false or misleading forms
5.    Frivolous arguments
6.    False nontaxable social security benefits reports
7.    Abuse of charitable deductions
8.    Abuse of retirement plans
9.    Disguised corporate ownership
10.    Filing a false wage amount
11.    Misuse of trusts
12.    Fuel tax credit fraud

You should remember that if something sounds too good to be true it might just be a fraud. If you know of a tax scam you should report it to the IRS. You can report suspected tax fraud by filling out Form 3949-A, mailing the IRS a letter or calling 1-800-829-3676. As a whistleblower, you may be eligible for a reward.


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