Tax scams can happen anytime of the year, not just during tax season. Three common year-round scams are identity theft, phishing and return preparer fraud. These schemes are on the top of the IRS’s “Dirty Dozen” list of scams this year. They’re illegal and can lead to significant penalties and interest, even criminal prosecution.
Here’s more information about these scams that every taxpayer should know.
- Identity Theft. Tax fraud by identity
theft tops this year’s Dirty Dozen list. Identity thieves use personal
information, such as your name, Social Security number or other
identifying information without your permission to commit fraud or other
crimes. An identity thief may also use another person’s identity to
fraudulently file a tax return and claim a refund.
The IRS has a special identity protection page on IRS.gov dedicated to identity theft issues. It has helpful links to information, such as how victims can contact the IRS Identity Theft Protection Specialized Unit, and how you can protect yourself against identity theft.
- Phishing. Scam artists use phishing to trick unsuspecting
victims into revealing personal or financial information. Phishing
scammers may pose as the IRS and send bogus emails, set up phony
websites or make phone calls. These contacts usually offer a fictitious
refund or threaten an audit or investigation to lure victims into
revealing personal information. Phishers then use the information they
obtain to steal the victim’s identity, access their bank accounts and
credit cards or apply for loans. The IRS does not initiate contact with
taxpayers by email to request personal or financial information. Please
forward suspicious scams to the IRS at phishing@irs.gov. You can also
visit IRS.gov and select the link “Reporting Phishing”at the bottom of the page.
- Return Preparer Fraud. Most tax
professionals file honest and accurate returns for their clients.
However, some dishonest tax return preparers skim a portion of the
client’s refund or charge inflated fees for tax preparation. Some try to
attract new clients by promising refunds that are too good to be true.
Choose carefully when hiring an individual or firm to prepare your return. All paid tax preparers must sign the return they prepare and enter their IRS Preparer Tax Identification Number (PTIN). The IRS created a webpage to assist taxpayers when choosing a tax preparer. It includes red flags to look for and information on how and when to make a complaint. Visit www.irs.gov/chooseataxpro.
Additional IRS Resources:
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication
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