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The IRS “Dirty Dozen for 2023”
Dec 04, 2023
Each year, the IRS releases its "Dirty Dozen" list of common scams and schemes that taxpayers should be aware of.
The 2023 list includes:
- Employee Retention Credit claims: Scammers aggressively pitch large refunds related to the Employee Retention Credit, often using false information and identity theft tactics.
- Phishing and smishing: Fake communications that appear to be from legitimate tax or financial organizations, including the IRS, are used to lure victims into providing personal and financial information.
- Online account help from third-party scammers: Swindlers pose as helpful third parties offering to assist in creating IRS online accounts, aiming to steal personal information.
- False Fuel Tax Credit claims: Fraudulent claims for fuel tax credits, meant for specific off-highway business uses, are promoted to inflate refunds.
- Fake charities: Scammers set up bogus charities, particularly during crises or disasters, to exploit public generosity and steal money and personal information.
- Unscrupulous tax return preparers: Some tax preparers may be shady, charging fees based on refund size, or refusing to sign returns they prepare ("ghost" preparers).
- Social media: Fraudulent form filing and bad advice: Misinformation circulated on social media involving common tax documents, encouraging submission of false information for refunds.
- Spearphishing and cybersecurity for tax professionals: Tailored phishing attempts targeting tax professionals to steal client data and commit identity theft.
- Offer in Compromise mills: Misleading promotions of Offers in Compromise to individuals who do not qualify, often costing them money.
- Schemes aimed at high-income filers: Including misuse of Charitable Remainder Annuity Trusts and monetized installment sales for tax avoidance.
- Bogus tax avoidance strategies: This includes micro-captive insurance arrangements and syndicated conservation easements that lack attributes of legitimate insurance or inflate tax deductions.
- Schemes with international elements: Attempts to hide assets in offshore accounts and digital assets, misuse of Maltese individual retirement arrangements, and Puerto Rican and foreign captive insurance schemes that lack legitimacy.
The IRS emphasizes that taxpayers are legally responsible for what's on their tax returns and advises consulting with reputable tax professionals.
This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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