The Internal Revenue Service has issued its annual “Dirty Dozen” tax scams list, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.
The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.
Illegal scams can lead to significant penalties and interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with the Department of Justice to shut down scams and prosecute the criminals behind them.
- Identity Theft: Tax fraud with fake claims increased over 400% in 2011 topping the ‘Dirty Dozen’ list of tax scams.
- Return Preparer Fraud
- Hiding Income Offshore
- “Free Money” from the IRS & Tax Scams Involving Social Security
- False/Inflated Income and Expenses
- False Form 1099 Refund Claims
- Frivolous Arguments
- Falsely Claiming Zero Wages
- Abuse of Charitable Organizations and Deductions
- Disguised Corporate Ownership
- Misuse of Trusts
You can learn more about the ‘Dirty Dozen’ at the IRS.