The Latest "Dirty Dozen"
It has become an annual rite of early tax season for the IRS to issue what it calls its "Dirty Dozen" tax scams to warn taxpayers about the latest trends in schemes to defraud taxpayers on various levels.
This year the IRS took a different approach, and rather than releasing the Dirty Dozen all at once like it did in the past it released them one scam at a time beginning back on January 22. This allowed the IRS to explore each one in more detail.
Here is the complete list:
- Phone scams
- Phishing
- Identity theft
- Return preparer fraud
- Hiding income offshore
- Inflated refund claims
- Fake charities
- Filing false documents to hide income
- Participating in abusive tax shelters
- Falsifying income to claim tax credits
- Excessive claims for fuel tax credits
- Frivolous tax arguments
The IRS says that this year the most serious scams are phone scams, in which scammers (well, let's call them what they are – criminals) call intended victims impersonating the IRS. Many times, the callers disguise the number they are calling to look like an IRS number and may threaten the target of the scam with arrest, deportation, or license revocation.
We have seen a large amount of this activity in our lcoal area, scaring many taxpayers. In fact, we had one taxpayer that came into our office ON THE WAY TO THE BANK to respond to such a call. The victim was actually still on the phone with the criminal who was threatening all sorts of horrible things if they didn't get what they wanted. The victim was visibly shaken, thinking the scammers literally were going to send law enforcement to their place of business for an alleged violation they had no idea they had supposedly done!
You need to know emphatically that the IRS will NEVER call to demand immediate payment, call about taxes owed without first mailing a bill, call to demand payment without the opportunity to question or appeal, require use of a specific payment method (such as a prepaid debit card), ask for credit or debit card numbers over the phone, or threaten to bring in local police or other law-enforcement groups to arrest someone for not paying.
Closely related to phone scams is another that continues to be high on the list called "phishing". Phishing has occurred when taxpayers get unsolicited emails trying to obtain financial or personal information. A taxpayer who receives a suspicious email should send it to phishing@irs.gov. "The IRS won't send you an email about a bill or refund out of the blue," states IRS Commissioner John Koskinen.
Another scam that should be of concern to a broad range of people is that of fake charities. Here's a caution – if you don't know for sure, you should check the IRS website for whether a charity is bona fide and qualifies for deductible contributions. This online IRS service is called the Exempt Organizations Select Check.
Fake charities sometimes use names similar to more well-known charities and they often also set up fake websites. They can be used for identity theft purposes as well. When large-scale natural disasters occur, these fraudulent organizations tend to increase. Taxpayers should not make any contributions without first checking the legitimacy of the organization.
Finally, no one likes paying taxes, so by human nature we are always looking for ways out of doing so. This is why the "frivolous tax argument" scam is often so effective. Be aware of tax schemes that promise over-the-top savings that seem too good to be true.
In announcing the 2015 release of "The Truth About Frivolous Tax Arguments", the IRS explained how the courts and the IRS have treated these arguments, which involve claims such as taxpayers not being subject to tax for religious or other reasons.
"Taxpayers should be on the lookout for scam artists and scheme promoters peddling outlandish arguments," IRS Commissioner Koskinen was quoted as saying. In addition, the IRS reminded taxpayers that they would automatically be subject to the $5,000 penalty for frivolous tax positions.
Space prevents being able to comment on them all, but being aware of all of the "Dirty Dozen" on the list is critical and can help keep you from becoming a victim, saving you much time, money, frustration and potential heartache.
