It’s tax season once again, and as you complete your 2024 returns, you’ll want to watch out for bad advice and convincing tax-related scams.
Every year, the IRS puts together a report called the “Dirty Dozen.” The report highlights some of the most frequent and trendy scams happening during the current filing season.
As tax schemes peak this time of year, taxpayers will need to be sure not to fall prey. Here’s a look at a few scams on this year’s Dirty Dozen:
- Email phishing scams. The IRS continues to see a barrage of email and text scams, often arriving in the form of unsolicited texts or emails to lure people into providing personal and financial information that can lead to identity theft. This could include emails sent by fraudsters claiming to come from the IRS, or messages using language like “Your account has now been put on hold” or “Unusual Activity Report” that includes a bogus “solutions” link to restore the account.
- Bad social media advice. Another growing concern is incorrect tax information on social media platforms such as TikTok that can mislead honest taxpayers with bad advice, potentially leading to identity theft and tax problems. The IRS has seen wildly inaccurate claims, like content urging people to misuse common tax documents like Form W-2.
- Fake charities. Bogus charities are a perennial problem, especially when a crisis or natural disaster strikes. Taxpayers who give money or goods to a charity may be able to claim a deduction, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.
The IRS also notes concerns about false fuel tax credit claims, bogus self-employment tax credits, improper household employment taxes, and more. Check out the full Dirty Dozen for more information, and remember to stay vigilant!
