IRS releases Dirty Dozen tax scam list
By Chris Clackum for NBC news
As if it weren’t bad enough that the tax deadline is fast approaching, the IRS said there are other things you need to worry about when filing your taxes this year.
The agency is out with its list of the worst tax scams.
Something that’s scary all the time tops the IRS’ Dirty Dozen list of tax scams, identity theft.
Which reminds us of South Carolina prison inmate and identity thief Dwayne Selvey.
While behind bars for burglary, Selvey spent his days stealing the identities of hundreds of taxpayers.
He then used them to file fraudulent tax returns which led to him claiming $3.5 million in refunds before being caught.
Selvey said, “I admitted to them, ‘Yeah, I’m the one who’s been filing the taxes.’”
The IRS estimates billions in refunds are going to ID thieves instead of the taxpayer every year.
The common way a thief steals an ID is second on the dirty dozen list; sending to unsuspecting taxpayers phony, phishing emails that internet security experts say look like they come from the IRS.
The IRS said it never initiates contact with taxpayers through email and if you get one, report it to firstname.lastname@example.org.
Another tip from the dirty dozen list, make sure you hire a reputable tax preparer who signs your returns and enters their tax preparer ID number.
- Identity theft
- Return preparer fraud
- Hiding income offshore
- “Free money” from IRS and scams involving Social Security
- Impersonation of charitable organizations
- False/inflated income and expenses
- False form 1099 refund claims
- Frivolous arguments
- Falsely claiming “zero wages”
- Disguised corporate ownership
- Misuse of trusts