Each year, the IRS compiles a list of common tax scams of which Americans should be aware, especially during tax season. See below for a list of the IRS’ 12 tax scams to avoid.
1. Phishing – Be cautious of fraudulent emails and websites appearing to come from legitimate companies that ask you to click a link or download a file.
2. Phone Scams – Do not respond to fake calls from individuals posing as the IRS.
3. Identity Theft– Protecting your social security number and personal information will prevent criminals from filing your tax returns.
4. Return Preparer Fraud – Keep an eye out for dishonest return preparers.
5. Fake Charities– Ensure your money is going to a real charity before making a donation.
6. Inflated Refund Claims – Be cautious of anyone who promises you big tax refunds.
7. Excessive Claims for Business Credits – Avoid misusing business credits by doing your research in advance.
8. Falsely Padding Deductions on Returns – Never falsely increase deductions or expenses to receive a larger tax return.
9. Falsifying Income to Claim Credits – Always file your income accurately.
10. Abusive Tax Shelters – Always pay your fair share when it comes to taxes.
11. Frivolous Tax Arguments – Never make unreasonable claims to avoid paying taxes.
12. Offshore Tax Avoidance – Never hide money or income offshore to avoid paying taxes.
For additional information regarding common tax scams, visit the IRS’ website at https://www.irs.gov/newsroom/dirty-dozen.
The IRS does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information.
Recognize the telltale signs of a scam.
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