The latest in the Internal Revenue Service’s “Summer Tax Tips” series is a firm warning about some of the most prevalent and dangerous tax scams. The IRS identifies 5 scams that pop up any time of the year:
1. Hiding Money in Offshore Accounts
2. Phishing / Identity Theft
3. Return Preparer Fraud
4. Filing Fraudulent Returns or Forms
5. Frivilous Tax Arguments
Some of these schemes are the product of fraud or deceipt on the part of a third party where the victim is the taxpayer. Numbers 2, 3 and 5 fall into this category. Others are the product of deceiptful activities undertaken by the taxpayer where the victim is the government. Numbers 1 and 4 fall into this category. And some of these probably fall into a third category whereby the hustle involves the taxpayer and the third party working together to deceive the government. Numbers 1, 4, and 5 fall into this category. However you want to categorize them, they are activities that you want to avoid. The IRS has taken great care to provide information to the public on how to recognize these activities, how to avoid them when they are encountered, and also what to do if you find yourself a victim.