Tuesday, February 6, 2018
The Worst Tax Scams
Each Year, The Internal Revenue Service releases a list of the worst tax scams. These scams peak at tax season but happen year round. Here's a roundup of some of the favorites by fraudsters.
Identity theft, phone scams and "phishing" are listed 1,2, & 3. ID theft, of course, is when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. Phone scams are those scary, send us money right now or go to jail calls. Phishing is usually done by email. The sender is seeking personal and financial information.
Fake charities abound also. They often use names similar to trusted organizations, even setting up fake websites. They are out to take your hard earned cash and prey upon your generosity. You can go to IRS.Gov to see if they're legit.
Taxpayers are guilty of tax scamming also. They have been known to falsely claim deductions, under report income, use multilayer companies to try and conceal who owns income. The earned income tax credit has been abused, as taxpayers actually claim higher income and /or dependents they are not entitled to claim, to get a larger refund.
The IRS is on the lookout for fraud constantly. Beware, be smart and if you have any questions, give us a call.