IRS Releases 2013 Scams
The IRS started the 2013 tax year on high alert for fraud. The previous years have shown an increase in identify theft and taxpayer fraud. To keep the public better protected, the IRS issued its list of the top fraud offenses for 2013. They have aptly named the list “The Dirty Dozen Tax Scams.” Tax fraud occurs year round but the IRS sees higher spikes of cases during tax season. The types of tax fraud range from identify theft to tax preparer fraud. Here are some of the scams that the IRS is warning the public about.
Identity Theft:
Identity theft has been an ongoing issue for the IRS with recent spikes over the last few years. As a result of increased cases, the IRS has developed an extensive program that concentrates on apprehending, detecting, and assisting the identity theft victims as soon as it happens. The law authorities have been alerted and the IRS has summoned a special committee that is looking closely at the returns for any cases of fraud before any refunds are issued. The IRS is also actively working on assisting the victims of any type of tax identity fraud.
The top identity theft cases the IRS is seeing involve the thief using the taxpayer’s legal name and personal information to file a fake tax return and then claim a fraudulent refund. This is usually noticed when the actual taxpayer goes to file their tax return and the IRS informs the taxpayer they have already filed. A person usually finds out that they have become a victim of identity theft when they receive notification from the IRS or wages from and employee they have never heard of. The IRS is urging anyone who is suspicious of such a crime to call the IRS Identity Specialized Unit. For more information, please visit the IRS website https://www.irs.gov/uac/Indications-your-identity-may-have-been-stolen-and-how-to-report-it-to-us.
Fraudulent Tax Preparers:
Most taxpayers will use tax preparers that are professional, honest, and ethical. Unfortunately, however, there are dishonest individuals out there who claim to be tax preparers while their real motive is to take advantage of unsuspecting people.
These unethical tax preparers target clients by offering refunds “no matter what” or claiming overestimated refund amounts. They may also take money out of the refund or charge unusually high fees for their services. It is important to note that many complaints of fraudulent tax preparers have been filed and the Federal Courts and the Department of Justices have issued numerous injunctions ordering such preparers to cease filing returns. For these reasons, it is very important that taxpayers carefully select their taxpayer.
In 2012, the IRS made it mandatory that every tax preparer have a Preparer Tax Identification Number (PTIN). This number must be entered on all of the returns that the tax preparer prepares.
Phishing
This form of tax fraud involves phony websites claiming to be real that collect personal information or send unsolicited emails pretending to be the IRS. The victims then provide their personal and financial information for the criminal to commit identity theft or financial theft. It is important to remember that the IRS does not email anyone! If you have received such emails it is important to contact phishing@irs.gov.
This is only a brief list of the dangers to be aware when filing your taxes this year. For more information, go to https://www.irs.gov/uac/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2012.
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