Agency lists its “Dirty Dozen” list for 2016.
With tax season attracting a host of scammers, the Internal Revenue Service is stepping up efforts to identify and reduce cases of fraud.
The IRS has launched new initiatives to fight an increase in fraudulent phone calls and emails from criminals posing as government tax officials. Taxpayers filing electronic returns are now required to enter more identification details before they can log into their account, and the government is going after telephone scammers by working to shut down criminals’ phone numbers and publicizing scammers’ numbers online.
“We are working hard to protect taxpayers from identity theft and other scams this filing season,” said IRS Commissioner John Koskinen. “Taxpayers have rights and should not be frightened into providing personal information or money to someone over the phone or in an email. We urge taxpayers to help protect themselves from scams — old and new.”
Still, scammers continue to steal taxpayers’ personal information and tax refunds.
In its annual “Dirty Dozen’’ list, the IRS ranked identity theft as this year’s top tax scam, with phone scams and phishing schemes also rating high concern. In February, the IRS renewed a consumer alert for email schemes after seeing a 400 percent surge in phishing and malware incidents so far this tax season.
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To fight against identity theft, the IRS warns taxpayers to be extremely cautious about giving out personal information, particularly Social Security numbers. To combat phone scams, the IRS advises taxpayers not to be fooled by criminals pretending to be IRS agents. The IRS typically contacts taxpayers by mail, not phone, and doesn’t ask for personal tax information, wire transfers or other form of payments.
To reduce phishing schemes, taxpayers should be on the lookout for fake emails or websites seeking to obtain personal information illegally. The IRS does not send taxpayers random emails about a tax bill or refund.
Other schemes on the Dirty Dozen list include return preparer fraud, offshore tax avoidance, promises of inflated refund claims and fake charities seeking to attract contributions from unsuspecting donors.
Those responsible for scams can face penalties and possible criminal prosecution. The IRS is working closely with the Department of Justice to shut down scams and prosecute scammers.
