IRS Dirty Dozen – Introduction
The IRS annually publishes the “Dirty Dozen” list to alert taxpayers about common tax scams.
The 2024 edition underscores both enduring and novel threats, emphasizing the sophistication of tactics used by scammers to mislead taxpayers and steal sensitive information.
Key Highlights from the 2024 List
- Phishing and Smishing Scams: Top the list with scammers using fake emails and texts to impersonate the IRS or other tax authorities to steal personal information.
- Employee Retention Credit Claims: These scams have been particularly prevalent since the pandemic, with fraudulent schemes encouraging ineligible claims for tax credits.
- Third-Party Online Account Scams: Taxpayers are warned against scams involving offers to help set up online IRS accounts which can lead to identity theft.
- False Fuel Credit Claims: Promoters push ineligible taxpayers to claim fuel tax credits, leading to penalties and possible identity theft.
- Offer in Compromise Mills: Taxpayers are lured into paying high fees for help with tax debt relief they may not qualify for.
- Scammers Using Fake Charities: Following natural disasters, scammers often solicit donations for non-existent charities.
- Unscrupulous Tax Return Preparers: Some preparers may urge illegal tax deductions or credits, risking penalties for taxpayers.
- Social Media Tax Advice: Misinformation on platforms like TikTok and Facebook can lead to false tax claims and scams.
- Spearfishing – Suspicious Email Requests: Tax professionals are targeted by scammers pretending to be new clients to steal sensitive information.
- Schemes Aimed at Wealthy Taxpayers and High-Income Filers: Complex tax avoidance schemes that promise large tax savings but are illegal or misleading.
- Abusive Tax Avoidance Schemes: These include transactions designed to improperly reduce tax liabilities, such as offshore accounts and other aggressive strategies.
- Schemes with International Elements: Includes attempts to exploit tax treaties and move money into foreign retirement accounts to evade U.S. taxes.
Trends and Evolutions in Scams
The 2024 list shows a significant shift in scam tactics, with an increased focus on online and digital methods, reflecting broader societal shifts towards digital financial interactions.
Phishing remains a primary concern, with new twists on scams emerging each year.
Protective Measures
Taxpayers are advised to remain vigilant, especially during tax season.
Unsolicited emails, texts, or calls should be treated with suspicion.
Official IRS communications will not demand immediate payments or threaten legal action without prior notification.
Final thoughts – IRS Dirty Dozen
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