“Dirty Dozen” Tax Scams

“Dirty Dozen” Tax Scams

Every year, the IRS releases a list of what it calls “the worst of the worst tax scams” of the year. Due to the unprecedented COVID-19 global pandemic, this year’s Dirty Dozen pose additional unique threats of which taxpayers should be mindful. With the implementation of many new provisions (such as the CARES Act, American Rescue Plan Act, PPP Loans, etc.) and an increased number of taxpayers claiming unemployment benefits, scammers have been employing new tactics taking advantage of these new areas.

This year’s scams include the following:

1. Unemployment insurance fraud
2. Phishing and impersonator phone calls/vishing
3. Fake charities
4. Immigrant/senior fraud
5. Social media scams
6. Offer in Compromise “mills”
7. Unscrupulous tax return preparers
8. Syndicated conservation easements
9. Abusive micro-captive arrangements
10. Potentially abusive use of the US-Malta tax treaty
11. Improper claims of business credits
12. Improper monetized installment sales

Please visit the official IRS “Dirty Dozen” website for detailed descriptions of each scam, included in the complete articles.