Every year at tax season, unscrupulous scam artists are out to get their hands on your money.
In 2013, the FTC received 2,545 complaints about IRS impostor scams.
In 2014: 54,690
6500 in December alone.
$14 million: Amount IRS says consumers pay out annually to scammers.
In 2014: 54,690
6500 in December alone.
$14 million: Amount IRS says consumers pay out annually to scammers.
The Dirty Dozen:
An IRS list of the most common scams
:
• Phone Scams: Calls impersonating IRS agents to gain access to personal information.
• Phishing: Fake emails or websites looking to steal personal information.
• Identity Theft: Using stolen personal information for financial gain.
• Return Preparer Fraud: Dishonest tax preparers commit refund fraud, identity theft and other scams.
• Offshore Tax Avoidance: If you’re attempting to hide money offshore, it is still subject to US income taxes. Only the promoters of the scheme prosper.
• Inflated Refund Claims: Watch for anyone that asks you to sign a black return, charges fees based on a percentage of the refund, or promises a large refund sight unseen.
• Fake Charities: Are you donating to a legit organization?
• Hiding Income with Fake Documents: You are responsible for your returns. Beware tax preparers that offer to hide taxable income.
• Abusive Tax Shelters: There are legitimate tax shelters, such as your 401(k), but there are also illegitimate ones. Be wary of tax shelters that sound too good to be true.
• Falsifying Income to Claim Credits: Scam artists frequently talk taxpayers into inventing income to claim tax credits.
• Excessive Claims for Fuel Tax Credits: The fuel tax credit is limited to off-highway business use. Every year people claim it to inflate their refunds.
• Frivolous Tax Arguments: Scam artists encourage taxpayers to make outlandish claims to avoid taxes owed. The penalty: $5,000.
Stolen Identities on the Rise
2008-2012: 550,000 taxpayers’ identities stolen for the filing of fraudulent tax returns.
In 2011, potentially fraudulent returns were filed using the SSNs of:
1,451 children under 14 years old;
19,102 dead people;
37,249 prisoners;
753,000 people whose income level did not require a tax return.
1,451 children under 14 years old;
19,102 dead people;
37,249 prisoners;
753,000 people whose income level did not require a tax return.
Increase in fraudulent tax returns filed with a SSNs of prisoners:
18,000 in 2004
186,000 in 2011.
18,000 in 2004
186,000 in 2011.
In 2014: 28.8% of phishing attacks used to steal financial data from users.
16.3% of phishing attacks used names of well-known banks.
Source:
accountingschoolguide.com
16.3% of phishing attacks used names of well-known banks.
Source:
accountingschoolguide.com
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