Beware of common tax scams

The Internal Revenue Service (IRS) is reminding taxpayers to keep clear of a number of common tax scams they’re calling the “Dirty Dozen.”

Every year the IRS compiles a list of things to watch out for and avoid during tax season. These scams can occur year round, but many of them peak during tax season as people fill out their returns. The schemes included on the list range from identity theft to false promises of free money.

“These schemes jump every year at tax time,” said IRS commissioner John Koskinen, in a statement. “Scams can be sophisticated and take many different forms. We urge people to protect themselves and use caution when viewing e-mails, receiving telephone calls or getting advice on tax issues.”

Here are some of the top scams:

• Tax fraud and identity theft. Someone steals your personal information, such as your name and Social Security number, to commit fraud, by among other things, using your identity to file a fake tax return and claim a refund.
• Telephone scams. Callers use false names and fake IRS badge numbers. They may be able to recite the last four digits of your Social Security number. In a sophisticated twist, victims hear background noises of other calls to make it seems as if the call center is real.
• Phishing. Scammers use spam email and fake websites that seem legitimate to snare you into providing your personal and financial information. If you receive an email that appears to be from either the IRS or an organization closely linked to the IRS such as the Electronic Federal Tax Payment System, send it to phishing@irs.gov.
• False promises of inflated refunds. Besides posing as fake tax preparers, these scam artists hit people with a filing requirement and due a refund by promising inflated refunds based on fictitious Social Security benefits, and false claims for education credits, the earned income tax credit or the American Opportunity Tax Credit.

View the complete list of scams and tips on how to avoid them.