Avoiding the Dirty Dozen Tax Scams and Reporting Suspected Fraud

As a taxpayer, it's essential to be aware of the various scams and fraudulent activities that may target you. The Internal Revenue Service (IRS) has identified 12 common tax scams known as the 'Dirty Dozen,' which can result in significant financial losses for unsuspecting individuals. In this article, we'll provide information on how to avoid these scams and report suspected fraud activity.

How to Avoid the Dirty Dozen Tax Scams

The IRS has highlighted the following common tax scams that taxpayers should be aware of:

* Fake charities: Scammers may pose as charitable organizations to steal your money.

* Phone and email scams: Con artists may contact you claiming to be from the IRS, demanding payment or personal information.

* Phony tax preparers: Unqualified individuals may offer their services, often at an inflated cost.

To protect yourself, it's crucial to verify the identity of anyone claiming to represent the IRS. Be wary of unsolicited emails, text messages, and social media messages that ask for personal information or payment.

Reporting Suspected Tax Fraud Activity

If you suspect someone is engaging in tax fraud activity or promoting fraudulent schemes, report the incident immediately. You can do this by contacting the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

Making a Complaint About a Tax Return Preparer

If you're unhappy with the services of a tax return preparer, you have the right to make a complaint. The IRS provides an online form to report concerns about tax return preparers. You can also contact the IRS at 1-800-829-1040 for more information.

The IRS website offers valuable resources to help you avoid scams and report suspected fraud activity. Some of these resources include:

* A list of injunctions obtained against tax return preparers and promoters in the past 12 years

* Information about recent injunctions and criminal prosecutions

* A news page with press releases organized chronologically

The IRS works tirelessly to shut down fraudulent tax return preparers and tax-fraud promoters. By staying informed and taking steps to protect yourself, you can avoid becoming a victim of these scams. Remember, the IRS will never initiate contact with you by phone or email requesting personal information or payment. If you're unsure about a tax-related issue, consult the IRS website or seek advice from a qualified tax professional.

This article has been written by Tim Davis Steward Partners to provide valuable insights and tips on avoiding the Dirty Dozen Tax Scams and reporting suspected fraud activity. For more information, please visit our website at 'website URL'.

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