Each year, the Internal Revenue Service releases a list of
the worst tax scams. These scams peak at tax season, but they happen all year
round. Here’s a roundup of some of the fraudsters’ favorites.
Identity theft, phone scams and “phishing” are listed as the
top three forms of scams. Identity 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 also abound. They often use names similar
to trusted organizations; some even go as far as setting up fake websites. They
are out to take your hard earned cash and prey upon your generosity. To check
if a charity is legitimate, you can check https://www.irs.gov/charities-non-profits/search-for-charities.
Taxpayers can be guilty of tax scamming as well. 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 at (702) 893-9500.
