The IRS shares its annual list of Dirty Dozen tax scams each year. There are many schemes that fraudsters use to try and steal your money, data, and personal information.
Dirty Dozen Tax Scams
A lot of the schemes occur throughout the year, not just during tax season, so keep an eye out for them! Swindlers are always inventing new ways to try and steal your information so pay attention!
Out of the 12 items on the list, I’d like to highlight three of them for you.
Online Account Help
The first item to highlight on the Dirty Dozen list is online account help. A trickster will offer to set up an online account for you at IRS.gov with the hope of submitting a fraudulent tax return in your name. Their hope is that they get a large refund.
Never use a third party to set up your profile on the IRS site. Instead, establish your own account without anyone else’s assistance so your financial and tax information are not at risk of theft.
Social Media Scam
Second on the scam list is social media. Social media can spread misleading or inaccurate information about taxes. The advice shared on various platforms can involve common tax documents like Form W-2 or the little-used Form 8944.
With the W-2 scheme, scam artists suggest that people use large and fake numbers for income and withholding taxes in the hopes of getting a substantial refund.
For the Form 8944, social media posts say that this form can be used by taxpayers to receive a refund even if the taxpayer owes money! This is false information and Form 8944 is for professional tax use only.
Offshore Accounts and Digital Assets
Last on the Dirty Dozen list are offshore accounts and digital assets. These schemes lure U.S. persons to place their assets in offshore accounts or suggest that digital assets, such as cryptocurrency, are untraceable and cannot be discovered by the IRS. These statements are not true. The IRS can identify and track foreign financial accounts and digital assets.
Here’s a friendly reminder – U.S. persons are taxable on their worldwide income.
Remember, if something sounds too good to be true, it probably is. If you’ve been contacted by a fraudster, use this form and get in touch with the IRS right away.
Provided that you are unsure about someone contacting you regarding your taxes, connect with your CPA, or feel free to reach out.