Taxpayers, Be Aware of Dirty Dozens
The Internal Revenue Service, in continuance of its endeavors released, has its annual “Dirty Dozen” list of tax scams, creating awareness among taxpayers to be cautious of identity thief, phishing scams and several others that can bring financial adversity.
Acting Commissioner Steven Miller said in a statement. "The Dirty Dozen list shows that scams come in many forms during filing season.”
1. Identity Thief: The risk is the vulnerability of Social Security number and date of birth, scamsters able to use that information to fraudulently file a tax return and claim a refund.
2. Phishing: Try to avoid clicking on the link from that unrequested e-mail and don’t stay too long on that fake website that appears to be a genuine site. By attracting visitors scamsters can convince them to disclose their valuable information.
3. Return preparer fraud: there are fraudulent preparers and are Identity Thief, the IRS advises taxpayers to choose carefully when hiring return preparer.
4. Hiding income offshore: There are small amount of people who try to evade U.S. taxes by by hiding income offshore. The IRS works closely with the Department of Justice to prosecute tax evasion cases.
5. “Free Money” from the IRS and tax scams involving Social Security: Scammers prey on low-income individuals and the elderly and members of church congregations with counterfeit promises of free money.
6. Impersonation of charitable organizations: it’s widespread that some scamsters to imitate charities to get money or private information from well-intentioned taxpayers.
7. False/inflated income and expenses: claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits, causing victim to repay the erroneous refunds, including interest and penalties, and in some cases, even prosecution.
8. Frivolous schemes: promoted by scam artists persuade taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe.
9. Falsely claiming zero wages: taxpayers may be encouraged by scamsters to claim phony zero wages.
10. Disguised corporate ownership: Third parties are inappropriately used to request Employer Identification Numbers and form corporations that obscure the true ownership of the business.
11. Misuse of trust: deceitful promoters can stress and tempt taxpayers to transfer assets into trusts.