Be Aware Of What Scammers Are Up To
Author: Jenny Shilling
Every year the IRS posts their list of "Dirty Dozen" Tax Scams. It's sad to say but the list doesn't change very much from year to year. In order to avoid being a victim of scams this tax season, please remember that the IRS will ONLY contact you using the United States Postal Service. They do not use email or the telephone to contact individuals about their tax returns.
At The Tax Office, Inc., we hope that you will find this list helpful in preventing tax scams.
1. Phone Scams – Criminals impersonate IRS agents and threaten taxpayers with arrest, deportation or license revocation in order to steal the taxpayers’ identity.
2. Phishing – Fake emails or websites are used to steal personal information. The email may attempt to gain access to your personal information. Koskinen emphasized that the IRS does not email taxpayers about a tax bill or refund.
3. Identity Theft – Criminals continue to steal Social Security numbers and attempt to e-File and obtain an early tax refund.
4. Return Preparer Fraud – Unscrupulous return preparers may be involved in refund fraud or identity theft.
5. Offshore Tax Avoidance – It is unlawful to hide money and income offshore. The IRS Offshore Voluntary Disclosure Program (OVDP) may help you get your taxes in order.
6. Inflated Refund Claims – Do not sign a blank return or have your tax return prepared by someone who bases their fees on a percentage of your refund.
7. Fake Charity – There are individuals who claim to represent a charitable organization and solicit donations. You should check to be sure that your gifts go to legitimate charities that qualify for a deduction.
8. Fake Documents – Some individuals attempt to hide income by filing a false Form 1099 or other documents. A taxpayer is responsible for paying his or her tax, regardless of who prepares the return.
9. Abusive Tax Shelters – There are complex tax avoidance schemes that sound “too good to be true.” You should seek advice of a qualified advisor before using any aggressive tax strategy.
10. Inventing Income to Claim Credits – Some taxpayers have claimed increased income in an effort to qualify for the earned income tax credit.
11. Fuel Tax Credits – The fuel tax credit for off-highway business use, such as farming, can be used to apply for an improper tax refund.
12. Frivolous Tax Arguments – Various promoters have urged taxpayers to make unreasonable and outlandish claims. These claims have regularly been held invalid by the courts and tax protesters have suffered substantial penalties.
If you believe you have been contacted by someone perpetuating a scam, you should report it to the IRS.
To report promoters of these scheme types or any other types you are aware of that are not listed here, please send a completed referral form, along with any promotional materials to the Lead Development Center:
Mail:
Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405
Fax: (877) 477-9135
