The Internal Revenue System issued its annual list of tax scams, known as the, "Dirty Dozen," to remind tax payers to be careful during the remainder of tax season. Many of the scams can occur all year round with an outstanding potential to peak during tax season.
The first scam topping 2014's Dirty Dozen tax scam list is Identity Theft. Regularly, an identity thief uses a taxpayer's identity to file a tax return and claim a refund.
Next on the list is Pervasive Telephone Scams. Callers can pretend to be from the IRS in hopes of stealing money or identities from victims. According to the IRS, characteristics of these scams can include:
Scammers may be able to recite the last four digits of a victim's Social Security Number.
Scammers "spoof" or imitate the IRS toll-free number on caller ID to make it appear that it's the IRS calling.
Scammers sometimes send bogus IRS emails to some victims to support their bogus calls.Victims hear background noise of other calls being conducted to mimic a call site.
About 60 percent of taxpayers will use tax professionals this year to prepare their tax returns, according to the IRS. Return Preparer Fraud is another scam to beware of. The IRS offers advice on choosing the right tax preparer.
Phishing is another scam. It is put into motion through an unwanted email or a fake website that poses as a an authentic site to lure in victims and make them provide personal and financial information.
False Promises of "Free Money" from Inflated Refunds is an additional scam to look out for . Scam artists can use anywhere from advertisements, phony store fronts or word of mouth to catch their victims.
For more information on additional tax scams visit www.IRS.gov.
The following are the Dirty Dozen tax scams for 2014:
Taxpayers can call the IRS Identity Protection Specialized Unit at 800-908-4490.
Pervasive Telephone Scams
If you know you owe taxes or you think you might owe taxes, call the IRS at 800-829-1040.
Call and report the incident to the Treasury Inspector General for Tax Administration at 800-366-4484.
If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS report it by sending it to firstname.lastname@example.org.
False Promises of "Free Money" from Inflated Refunds
Return Preparer Fraud
IRS.gov has general information on reporting tax fraud. More specifically, you report abusive tax preparers to the IRS on Form 14157, Complaint: Tax Return Preparer. Download Form 14157 and fill it out or order by mail at 800-TAX FORM (800-829-3676).
Hiding Income Offshore
Impersonation of Charitable Organizations
Call the IRS toll-free disaster assistance telephone number (866-562-5227) if you are a disaster victim with specific questions about tax relief or disaster related tax issues.
False Income, Expenses or Exemptions
Falsely Claiming Zero Wages or Using False Form 1099
Abusive Tax Structures
The IRS encourages taxpayers to report unlawful tax evasion. Where Do You Report Suspected Tax Fraud Activity?
Misuse of Trusts