The Most Common Tax Scams

Last updated on February 24, 2014

It is during tax season that tax scammers are the most active. During this time, millions of taxpayers become victims of tax crimes such as tax preparer fraud, identity theft and abusive trusts. Out of the many tax scams, identity theft has topped the IRS’ Dirty Dozen Tax Scams list for three consecutive years.

Identity theft is conducted by stealing taxpayers’ tax information to file fraudulent tax returns. Scammers use phishing and other methods to steal taxpayer information with the aim of pocketing huge refunds. The IRS has made efforts, including conducting combing operations and updating their tax processing methods, to curb identity theft. Yet, it  continues to be the most common tax scam in the U.S.

Identity theft is followed by ‘pervasive telephone scams’ and ‘phishing’ in the IRS Dirty Dozen. These methods are the most common in persuading and tricking taxpayers into sharing their tax information. During tax season, scammers use the name of the IRS to send taxpayers fake emails to extract their tax and personal information.

Using trusted resources to prepare and file taxes, and to get tax information is vital to stay protected from tax scammers. Stay informed about tax scams to avoid them.