The IRS announced today the Dirty Dozen for 2021 which are the most common tax scams. What scams are they and how can you avoid them?
Compiled annually by the IRS, the “Dirty Dozen” lists the most common scams that taxpayers may encounter anytime but that usually peak during filing season as people prepare their returns or hire someone to help with their taxes. Don’t fall prey.
The Internal Revenue Service today began its "Dirty Dozen" list for 2021and has warned taxpayers, tax professionals, and financial institutions to be on the lookout for these 12 schemes and scams.
This year's "Dirty Dozen" will be separated into four separate categories:
• pandemic-related scams like Economic Impact Payment theft;
• personal information cons including phishing, ransomware, and phone "vishing;"
• ruses focusing on unsuspecting victims like fake charities and senior/immigrant fraud; and
• schemes that persuade taxpayers into unscrupulous actions such as Offer In Compromise mills and syndicated conservation easements.
The agency compiled the list into these categories based on who perpetuates the schemes and who they impact. In addition to today's scams, the IRS will highlight the other schemes over the next three days.
The IRS has already urged all taxpayers on various occasions to be on guard, especially during the pandemic, not only for themselves but also for other people in their lives.
"We provide this list to alert taxpayers about common scams that fraudsters use against their victims. At the IRS, we are dedicated to stopping these criminals, but it's up to all of us to remain vigilant to protect ourselves and our families," said Commissioner Chuck Rettig.