The IRS has released its Dirty Dozen list for 2024, highlighting the most common tax scams targeting taxpayers. These scams range from phishing and smishing scams to fraudulent charities and intimidating impersonator phone calls. The IRS advises individuals to be cautious and proactive in protecting themselves from these deceitful schemes. One important tip is to avoid clicking on links or downloading attachments from unverified sources, especially in unsolicited emails or text messages.
Another scam to watch out for is fraudulent charities, where scammers create fake organizations to take advantage of people’s generosity. Before donating to any charity, it’s essential to verify its authenticity by checking the IRS’ Tax Exempt Organization Search. In addition, taxpayers should be wary of social media scams that offer misleading tax advice or unrealistic refunds. It’s always best to consult with verified tax professionals rather than relying on unsolicited online information.
Dishonest tax return preparers are also a common source of scams, as some may promise unusually high refunds or charge fees based on the refund amount. It’s crucial to choose a reputable tax preparer and avoid those who make exaggerated claims. Furthermore, taxpayers should be cautious of anyone promoting fraudulent tax credits, such as inflated fuel tax credit requests. These scams often promise unrealistically large refunds or credits, which should raise red flags.
Certain scams target specific groups, such as non-English speakers and the elderly, with additional threats and misinformation. Communities should provide support and resources in multiple languages to assist vulnerable members. Additionally, individuals should be wary of ‘ghost’ tax preparers who fail to sign tax returns, as this could indicate potential fraud. It’s important to ensure that any tax professional you work with signs your return and includes their Preparer Tax Identification Number.
The IRS also warns against unauthorized online account assistance, where scammers offer to help create IRS online accounts to access personal information. To mitigate risk, it’s advisable to set up online accounts directly through the official IRS website. Improper use of trusts and abusive tax shelters are other scams to be aware of, as they may offer deceptive tax advantages through complex and illegitimate strategies. Lastly, individuals should be cautious of baseless tax arguments that encourage taxpayers to make unfounded claims to avoid taxes, as these have been invalidated by the IRS.
To protect against these scams and other types of fraud, individuals are advised to verify information through the IRS website, safeguard personal information diligently, and seek advice from reputable tax professionals. If you encounter any suspicious activities, it’s crucial to report them to the IRS or the Treasury Inspector General for Tax Administration. By staying informed and vigilant, taxpayers can avoid falling victim to these deceitful schemes and protect themselves from financial harm.
