The tax filing season is upon us, and with it comes a tidal wave of scams that can leave taxpayers vulnerable to identity theft, financial loss, and emotional distress. To combat these threats, the Internal Revenue Service (IRS) has issued its annual Dirty Dozen list, highlighting 12 of the most common and dangerous scams that tend to spike during this critical period. The IRS emphasizes that scammers are becoming increasingly relentless and creative in their tactics, using various channels to trick taxpayers into divulging sensitive information or falling into scams. These red flags can lead to a range of negative consequences, from financial loss to emotional trauma. The Dirty Dozen list is not a one-time publication, but rather an ongoing effort by the IRS to raise awareness about the various scams that taxpayers face. For over two decades, the agency has used a range of communications and education campaigns to protect taxpayers from these threats. The IRS notes that email and text scams top the list, with phishing and smishing tactics being used to trick taxpayers into divulging sensitive information or clicking on harmful links. These scams often threaten penalties or promise unexpected refunds, trying to lure victims into a trap. Some of the most common scams include:
- Bogus refund offers: Scammers may claim that a taxpayer is eligible for a refund, only to ask for sensitive information or payment to release the refund.
- Phishing emails and texts: Scammers may send emails or texts that appear to come from the IRS or other legitimate entities, trying to trick taxpayers into divulging sensitive information.
- Bad advice on social media: Scammers may post misleading information on social media, encouraging taxpayers to misuse forms or claim credits they don’t qualify for.
The IRS also warns against fake charities, which can exploit goodwill to steal money and personal details. These scams are particularly prevalent in the wake of disasters, as scammers take advantage of people’s generosity to steal funds. Other scams target self-employed individuals with made-up credits or aim to manipulate Form W-2 and 1099 filings using inflated or falsified withholding data. Tax professionals are not immune to sophisticated scams, with spear-phishing campaigns targeting preparers directly by posing as new clients. These scams aim to install malware and gain access to confidential client data. The IRS has teamed up with the tax community to form the Coalition Against Scam and Scheme Threats (CASST), which aims to combat these scams. The IRS encourages taxpayers to follow only trusted sources when it comes to tax advice. The IRS reminds taxpayers to be cautious and to be wary of scams that:
- Promise unusually high refunds: If it seems too good to be true, it probably is.
- Ask for sensitive information: Never provide sensitive information to unknown individuals or entities.
- Claim to be from the IRS: The IRS will never contact taxpayers via email or text to demand payment.
By being aware of these scams and taking steps to protect themselves, taxpayers can avoid falling victim to these harmful schemes. The IRS encourages taxpayers to stay vigilant and to report any suspicious activity to the authorities. The Dirty Dozen list is a critical tool in the IRS‘ efforts to protect taxpayers from these scams. By staying informed and taking steps to protect themselves, taxpayers can avoid falling victim to these harmful schemes.