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Here is a list of the top IRS scams to watch out that you don not fall victim.
DETROIT - Michimich -- The IRS has posted its annual Dirty Dozen list of tax scams for 2022., The annual Dirty Dozen list is a way of alerting taxpayers and tax preparers of schemes and abusive arrangements.
Below is a listing of the schemes that the IRS is highlighting this year.
Identity Theft Scams
The IRS continues to see identity thieves evolve their schemes and continue to use schemes they have used in past years.
Pandemic related tax scams
Criminals are still using the COVID-19 pandemic to attempt to steal people's money and identity with bogus e-mails, social media posts and unexpected phone calls.
Examples include:
Suspicious Communications
Criminals continue to use communications such as bogus calls, texts, emails, and posts online to either trick, surprise, or scare someone into providing sensitive personal financial information, money, or other information. This data can be used to file false tax returns and tap into financial accounts.
More on Michimich.com
Email Spear Phishing
Spear phishing is an email scam that attempts to steal a tax professional's software preparation credentials and/or install malware. This allows the criminal access to the tax professional's computer systems to steal client data and tax preparers' identities in order to file fraudulent tax returns for refunds.
Offer in Compromise (OIC) Mills
Offers in Compromise mills make outlandish claims, usually in local advertising, regarding how they can settle an individual's tax debt for pennies on the dollar.
OIC mills are a problem all year long, but these tax scams tend to be more visible right after the filing season is over and individuals are attempting to resolve their tax issues.
Use of a Charitable Remainder Annuity Trust to Eliminate Taxable Gain
These transactions involve the transferring of appreciated property to a charitable remainder annuity trust (CRAT). The taxpayer then improperly claims a step-up in basis to the fair market value as if the property had been sold to the trust. The CRAT then sells the property but does not recognize a gain due to claiming the step-up in basis for the property.
Read More - https://89tax.com/top-2022-irs-dirty-dozen-tax-scams/
Below is a listing of the schemes that the IRS is highlighting this year.
Identity Theft Scams
The IRS continues to see identity thieves evolve their schemes and continue to use schemes they have used in past years.
Pandemic related tax scams
Criminals are still using the COVID-19 pandemic to attempt to steal people's money and identity with bogus e-mails, social media posts and unexpected phone calls.
Examples include:
- Economic Impact payment and tax refund scams
- Unemployment fraud leading to inaccurate taxpayer 1099-Gs
- Fake employment offers posted to social media
- Fake charities
Suspicious Communications
Criminals continue to use communications such as bogus calls, texts, emails, and posts online to either trick, surprise, or scare someone into providing sensitive personal financial information, money, or other information. This data can be used to file false tax returns and tap into financial accounts.
More on Michimich.com
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Email Spear Phishing
Spear phishing is an email scam that attempts to steal a tax professional's software preparation credentials and/or install malware. This allows the criminal access to the tax professional's computer systems to steal client data and tax preparers' identities in order to file fraudulent tax returns for refunds.
Offer in Compromise (OIC) Mills
Offers in Compromise mills make outlandish claims, usually in local advertising, regarding how they can settle an individual's tax debt for pennies on the dollar.
OIC mills are a problem all year long, but these tax scams tend to be more visible right after the filing season is over and individuals are attempting to resolve their tax issues.
Use of a Charitable Remainder Annuity Trust to Eliminate Taxable Gain
These transactions involve the transferring of appreciated property to a charitable remainder annuity trust (CRAT). The taxpayer then improperly claims a step-up in basis to the fair market value as if the property had been sold to the trust. The CRAT then sells the property but does not recognize a gain due to claiming the step-up in basis for the property.
Read More - https://89tax.com/top-2022-irs-dirty-dozen-tax-scams/
Source: 89 Tax, LLC
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