Debt Reduction Advice | Debt Reduction Advice

Every year the IRS issues its “Dirty Dozen” list. These are 12 tax scams to watch out for. Sometimes new scams pop up, sometimes the scams have been carried over from past years. But they’re always a headache for honest taxpayers who fall for these scams and also for the IRS who must track down criminals. “Taxpayers should be wary of anyone peddling scams that seem too good to be true,” IRS Commissioner Doug Shulman said in a news release issued by the IRS. “The IRS fights fraud by pursuing taxpayers who hide income abroad and by ensuring taxpayers get competent, ethical service from qualified professionals at home in the U.S.” Here are some of the tax scams the IRS warns us about. For a full list visit IRS.gov.

Return Preparer Fraud: Most tax preparers are doing their jobs to the best of their ability. But some are being dishonest. These preparers are getting more money by taking part of their client’s refunds, charging inflated fees or making promises that are too good to be true. It’s important to remember that as a taxpayer, you are ultimately responsible for whatever your tax return says, regardless of who you hired to prepare it for you.

Hiding Income Offshore: Some taxpayers try to avoid paying taxes by putting their income in offshore banks or brokerage accounts. They try to hide it from the IRS by using debit cards, credit cards, wire transfers or other methods attached to their offshore accounts. The IRS is asking those with offshore accounts to voluntarily come forward which will limit their risk of criminal prosecution.

Phishing: Phishing is a scam that comes in a variety of forms, but put simply it’s a way to trick unsuspecting victims into giving out their personal information online. These can come in the form of emails, tweets or fake websites. Some scammers even get this sensitive information via phone or fax. Scammers may pretend to be associated with the IRS, saying that they have a tax refund for the person, but need additional personal information in order to claim it. Once the crooks have the personal information they are able to access bank accounts and make fraudulent charges. If you receive a suspicious email you are urged to forward it to phishing@irs.gov.

IRS Warns Of “Dirty Dozen” Tax Scams is a post from: Thistle Debt Consolidation