February Article: 12 Biggest Tax Scams to Avoid

The 12 Biggest Tax Scams to Avoid 

1. Phishing. There are so many fake websites and emails that are created with the sole intention to steal personal information. Remember that the IRS will never start contact with an email.

2. Phone Scams. This is a well-known and still very common method used by thieves. The IRS will never threaten a Taxpayer with arrest by the police or deportation.

3. Identity Theft. Tax Season is the time when the greatest amount of identity theft takes place. Taxpayers can help to protect themselves by choosing a Tax Professional who is trustworthy, honest, and protects their personal information.

4. Tax Preparer Fraud. Sadly, there are some preparers who look to take advantage of others. Taxpayers can help themselves by never signing a blank return and making sure they clearly understand the fees before choosing a preparer.

5. Fake Charities. If a group sounds similar to a well-known organization, but not quite the same, take some time to do more research. Better to make sure before than to regret it later.

6. Large Claims for Business Credits. These are used for a certain limited group in Finance. If you do not qualify, don’t lie to try.

7. Large Refund Claims. Be careful of a Preparer promising a larger Tax Refund to use them. It’s a crime to charge a fee based on the percentage of the Tax Return.

8. False Deductions on a Tax Return. Adding false deductions is a crime, just like inflating actual deductions. This will lead to repaying the government for the tax, interest, and penalties. Not worth it.

9. Lying to Claim Tax Credits. A filed Tax Return should always be as accurate as possible. If a Taxpayer falsifies information to claim a credit, they will pay taxes, interest, and penalties when caught. They can even go to jail.

10. Tax Shelters. The IRS spends a lot of time and effort seeking out, and stopping Tax avoidance schemes and shelters. It’s not worth it.

11. Offshore Tax Avoidance. This was a very popular way to hide money for many years. Now it is no longer successful. The Offshore Voluntary Disclosure arrangement put in place by recent Tax Reform offers a way to catch up with a little pain as possible.

12. Pointless Tax Arguments. A Taxpayer can take their case to court, but they must use logical reasoning when discussing law. The more pointless the claim, the faster it gets thrown out of court.


Even though tactics will change, staying aware of these scams will save a lot of money, time, and heartache. Being involved in this industry for over 30 years, our experience can help us keep you safe.

 If you found these points to be helpful, please sign up for our Free Monthly Newsletter. We will provide a variety of tax Tips and strategies to help you and your business to thrive. If you feel that you have fallen prey to any of the scams mentioned here, contact us immediately. The faster you seek help, the sooner a resolution can be found.

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