May 29, 2019 - Douglas Myser

Tax lands dirty dozen tax scams. As they do every year, the IRS issues on their website a list of the "Dirty Dozen" tax scams. Here they are. Inflated refund scams. Fraudulent tax preparers often falsify tax returns to gain clients, or lure clients into handing the money over to them, them pocketing large amounts of money, prior to leaving the country. You may have heard of such stories. These scam artists are not legitimate tax preparers, and often have fake licenses, set up shop in strip malls that are otherwise half empty. It is always a good idea to check the credentials of the person you are dealing with, and ask for referrals. Those same individuals often inflate the deductions or credits of the tax returns, to get larger tax refunds. Which makes those refunds fraudulent.

Tax lands dirty dozen tax scams. Phone scams. The IRS has warned for years that phone scams are on the rise and that phishing scams are also on the rise. Phishing scams have been targeting Tax Practitioners with fake emails, text messages, websites, and social media attempts to steal personal information.  Oftentimes the criminals pose as IRS agents in hopes of stealing personal information, including Social Security numbers or bank account information.

Fake charity scams often lure victims into making ineligible donations, ultimately leaving the unsuspecting donor out of pocket and without a charitable deduction. "Scam artists commonly use charities as a cover to lure honest people into providing money and sensitive personal information,"  These scams often increase when a natural disaster occurs. Donors can check whether a charity is bona fide by looking it up on the Tax Organization Search, an IRS database that lists legitimate charities.

Frivolous tax arguments make the list every year. These arguments come in all forms. Organizations that promote the idea that you don't have to pay income tax for a variety of reasons. These arguments are always thrown out in court. People who promote these arguments often land in jail, and face enormous fines. The IRS states that it has discussed these arguments in "The Truth about Frivolous Tax Arguments." If you have been taken by one of these scam artists, our 35 year old Competitor Referred Tax Resolution firm can help you file all past due tax returns, then look for Tax Relief in the IRS Code that would be appropriate for your financial situation.