Tax Scams – Examining the IRS’s Dirty Dozen
- February 6th, 2015
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The original Dirty Dozen was one of MGM’s biggest moneymakers in the 1960’s. It told the story of twelve morally compromised men who were given a brutal shot at redemption in the bloodiest of wars. That’s Hollywood’s Dirty Dozen. The IRS’s dirty dozen has an equally reprehensible reputation (without the redemption plot) but that’s where the comparisons end. These scammers and con artists all have a tendency to emerge during tax season and, thanks to their low profile they are able to take advantage of unwitting, honest consumers without too many repercussions. Here are the tax scams you should be aware of this season.
How to Identify the IRS’s Dirty Dozen and Their Tax Scams
Since the IRS’s explanation of tax scams is fairly long, we figured we would give you the abridged version. That way you are able to best examine each tax scam and do further research on those that you feel you may be exposed to (or are unprepared for). Listed below is an abridged version of the IRS’s dirty dozen.
1. Identity Theft
Identity theft will probably be the most well-known of the tax scams on this list and that might be because it is the most prevalent. To steal your identity a person will need certain information about you such as your Social Security number or name. If they use that information without your permission to commit fraud or some other crime they may be tried for identity theft. Identity theft is especially common during tax season as the identity thief will take your stolen identity information and fraudulently file a tax return in your name. They get to claim a refund and you get a serious financial headache.
If you have lost any important personal information lately (or were the victim of a theft) then you may want to contact the IRS immediately. For further information check out this section on IRS.gov that will fully illustrate the dangers and causes of identity theft.
For the rest of the Dirty Dozen Tax Scams please download our guide below.