The IRS released their annual "Dirty Dozen" ranking of tax scams to remind taxpayers to use caution during tax season to protect themselves against a wide range of schemes.
The three most common schemes to watch out for are:
Identity Theft – The IRS is increasingly seeing identity thieves looking for ways to use a legitimate taxpayer's identity and personal information to file a tax return and claim a fraudulent refund. If you believe your personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit.
Phishing – This scam is typically involves unsolicited emails or fake websites that poses as a legitimate site and attempt to get the victim to enter valuable personal and financial information. These emails can appear to be legitimate, but it is important to keep in mind the IRS does not initiate contact with taxpayers by email or request personal or financial information.
Return Preparer Fraud – It is important you hire a trusted tax professional to prepare and file your tax returns. Questionable return preparers have been known to skim off their clients' refunds, charge inflated fees for return preparation services and attract new clients by promising guaranteed or inflated refunds.
You can find the complete IRS Release of the Dirty Dozen Tax Scams for 2012 here along with additional information on how to contact the IRS if you feel you have been a victim of a tax scam.
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