Finance & Enjoyment Blog

Common Tax Scams In 2012

Every tax season brings with it several new scams and schemes in an attempt to defraud the taxpayer. For 2012, the IRS has identified five of the most common scams that will affect taxpayers.

  1. Identity Theft: Due to the advancement in technology, identity theft has quickly grown into the most common scam a taxpayer will face. If you receive two notices from the IRS about filed taxes, you may have been a victim of identity theft.
  2. Phishing: Phishing scams typically come in the form of a website address, whether it be in an email or in a link from another site. These sites may look identical to those you are used to such as your online bank. If you receive an email that looks like it came from the IRS or affiliated sites, you can email the link to for them to investigate.
  3. Return Preparer Fraud: In the past, scams involving return preparers have consisted of the preparer taking part of the client’s refund, charging an abnormally high fee, or attaining new clients by guaranteeing a substantial refund. When dealing with a tax preparer, always make sure their preparer number is on the return and they have signed it. Another red flag would be if the preparer makes any deals with you about your refund.  
  4. IRS Given Free Money: Some con-artists will advise you about a special program the IRS has that pays simply for filing a return. They charge a fee for this advice, file the fraudulent claim with the IRS, and then disappear as the victims receive a claim rejection notice.
  5. Misuse of Trusts: Some scammers will convince you to transfer assets into a trust with the belief the income will avoid taxation. This is false information, but the scammer still collects a few for the transfer.  It’s important to see a trusted professional when transferring asset s into a trust.

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