Bogus Income Tax Returns Haunt the IRS

Tax scammers are using the appearance of ‘tax preparers’ to trick taxpayers into claiming huge refunds by filing fraudulent tax returns. The target of tax scammers is those taxpayers who are not required to file a tax return.

The IRS receives fraudulent tax returns regularly. Some are filed by taxpayers, others by fraudulent tax preparers, with the remaining being filed by tax scammers using stolen identities. The IRS blocks many fake tax returns, but not all. There have been cases where tax thieves have received huge refunds after the IRS processed fake tax returns.

Tax scammers in the guise of tax preparers lure taxpayers with the promise of a large refund if they file a bogus tax return. The scammers then file tax returns on behalf of the taxpayers with false income figures, and false tax deductions and credits, including the Veteran’s Disability Benefits and American Opportunity Tax Credit to claim the maximum refund amount.

The repercussions of participating or falling victim to fraudulent tax preparers can be dire for taxpayers. As the taxpayer signs the tax return, the responsibility instantly lies with the taxpayer. The punishment for tax fraud is heavy penalties and/or imprisonment.

The IRS publishes the Dirty Dozen Tax Scams list each year to inform taxpayers about the top tax scams. Although the IRS must make efforts to enhance the efficiency of their tax return processing methods, it is important for taxpayers to ensure their safety.

What you can do to stay safe from fraudulent tax preparers:
Even if the IRS cannot beat tax scammers, you can with the right information.

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