The IRS has issued a warning to taxpayers about the three
tax scams that may fit them this summer. Identity theft, I.D. phishing, and
return preparer fraud topped the charts in this year’s IRS Dirty Dozen tax
scams list. These tax scams can happen anytime during the year, not just tax
The most widespread of all tax scams, identity theft, has
become an epidemic in some states. The use of technology assists scammers to
contact victims through emails and web pages. Many taxpayers share their tax
and personal information with the scammers who pose as the IRS or a reputable
institution, which they use for financial crimes, including filing fraudulent
tax returns using the victim’s identity.
Phishing is done on the Internet or over the phone. Tax
scammers pose as the IRS, a bank, or any reputable organization to extract
personal and financial information from taxpayers. Phishing is conducted by
sending bogus emails or through fake web pages. Many times, scammers also make
phone calls to taxpayers posing as an IRS agent, either threatening or tempting
taxpayers into sharing their tax information, which is used to file fraudulent
tax returns or commit other financial crimes.
To help curb phishing, taxpayers should forward any
suspicious tax related emails to firstname.lastname@example.org. The IRS shares information on phishing
to help taxpayers protect themselves.
Fraudulent Tax Return
Taxpayers must check the Preparer Tax Identification Number
(PTIN) before hiring a tax preparer, as the IRS has made it mandatory for all
professional tax preparers to get PTIN. Many fraudulent tax preparers alter
information on the returns to receive a huge refund. Taxpayers must report tax
preparers to the IRS that promise them huge refunds by filing fraudulent tax
returns so that others may be saved from falling victim.
Labels: Identity Theft, IRS, Tax Filing, Tax News, Tax Scams, Taxpayers