The IRS recently released its “Dirty Dozen” list of tax scams to be on the lookout for. The now popular “Dirty Dozen” is an annual compilation of common scams that taxpayers may encounter at any time, but typically peak during filing season. Among these ploys, the COVID-19 pandemic is commonly used in tandem with bogus emails, social media posts, and phone calls to try and extract information scammers need.
More Detail
Scams can take on a variety of forms including using unemployment information and fake job offers to steal money or information from individuals. These efforts can lead to information being stolen which scammers will use to try and file fraudulent returns and harm victims in other ways. Charles Rettig was quoted saying, “Scammers continue using the pandemic as a device to scare or confuse potential victims into handing over their hard-earned money or personal information, I urge everyone to be leery of suspicious calls, texts, and emails promising benefits that don’t exist.”
The Dirty Dozen List
Although the 2022 “Dirty Dozen” list is still currently in progress, the IRS has listed 8 out of the dozen scams to be on the lookout for:
Economic Impact Payment & Tax Refund Scams:
Economic impact payments are also known as stimulus checks, taxpayers who are eligible for such checks can claim a rebate recovery credit on their 2020 or 2021 tax return. Some of the red flags to look for are any text messages, unexpected phone calls, and emails asking for taxpayer information. The IRS will never go out of its way to contact a taxpayer.
Unemployment fraud and inaccurate forms 1099-G
This type of scam involves fraudulently filing unemployment forms for state unemployment benefits that the taxpayer did not receive using the taxpayers’ personal information.
Bogus employment offers
There are many fake job postings all over social media, to try and scam taxpayers into giving them their personal and financial information and in turn, becoming victims of tax identity fraud and refund theft.
Fake Charities
Scammers always try and take every opportunity they can to take advantage of anyone they think is vulnerable enough. Another way they have been doing this is taking advantage of the people willing to donate to charities by creating fake ones and pressuring people to donate over the phone. An actual charity will be extremely grateful for any kind of donation so they will never rush or pressure you to make one. Another big red flag is if they request you to donate by gift card or wire transfer. A credit card or check is always a safer option, says the IRS.
Wrap Up
Even though tax season has ended, scammers have not. Don’t get taken advantage of by these shady individuals, if you have a question regarding anything tax-related, feel free to give our office a call to confirm it is legit.