Are you thinking about taxes
while you’re enjoying the warm summer months? Not likely! But the IRS
wants you to know that scammers ARE thinking about taxes and ways to
dupe you out of your money.
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.
Here’s more information about these scams that every taxpayer should know.
1. 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.
2. 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.
3. 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.
For the full list of 2013 Dirty Dozen tax scams, or to find out how to report suspected tax fraud, visit IRS.gov.
