IRS Tax Scams List Released – Dirty Dozen

Top 12 IRS Tax Scams List Released – Avoid These at all Costs

Many people don’t really think about taxes once the tax season is over…but people promoting scams do. Each year, the IRS releases the top 12 IRS tax scams, known as the Dirty Dozen. The schemes range from simple refund inflation to technical tax shelter deals. Be very careful with what comes into your email inbox and be aware of anyone calling you claiming to be from the IRS. The IRS doesn’t contact you in either of these ways.

Here’s a review of this year’s Dirty Dozen:

1.Phishing: Taxpayers should watch for fake emails or websites looking to steal personal information.

2.Phone Scams: Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers.

3.Identity Theft: Taxpayers should be alert to tactics aimed at stealing their identities.

4.Return Preparer Fraud: Most tax professionals provide honest, high-quality service. However, there are some dishonest preparers who scam clients.

5.Fake Charities: Groups masquerading as charitable organizations solicit donations from unsuspecting contributors.

6.Inflated Refund Claims: Taxpayers should be wary of anyone promising inflated tax refunds.

7.Excessive Claims for Business Credits: Taxpayers should avoid improperly claiming the fuel tax credit.

8.Falsely Padding Deductions on Returns: Taxpayers should avoid the temptation to falsely inflate deductions or expenses on their tax returns.

9.Falsifying Income to Claim Credits: Con artists may convince taxpayers to invent income to erroneously qualify for tax credits, such as the Earned Income Tax Credit.

10.Frivolous Tax Arguments: Some taxpayers use frivolous tax arguments to avoid paying tax.

11.Abusive Tax Shelters: Taxpayers who use abusive tax structures do so to avoid paying taxes.

12.Offshore Tax Avoidance: It’s a bad bet to hide money and income offshore.

Find more useful self-help IRS tools here.

Tax Return Extension Filers – Common Filing Errors

Tax Return Extension Filers Can Avoid Making These Common Filing Errors

Tax return extension filers have until Oct. 15 to submit their tax return.

To make sure they meet their tax obligations, taxpayer extension filers should file accurate tax returns. If a taxpayer makes an error on their tax return, it will likely take longer to process and could delay a refund. Taxpayers can avoid many common errors by filing electronically, the most accurate way to file a tax return. All taxpayers can e-file using IRS Free File or Free File Fillable Forms.

Here are common errors for taxpayers to avoid when preparing their tax return:

Missing or inaccurate Social Security numbers. Taxpayers should be sure to enter each SSN on a tax return exactly as printed on the Social Security card.
Misspelled names. People should double check to make sure they spelled all names listed on a tax return exactly as listed on the taxpayers’ Social Security cards.
Filing status. Some taxpayers claim the wrong filing status, such as Head of Household instead of Single. The Interactive Tax Assistant on IRS.gov can help taxpayers choose the correct status. E-file software also helps prevent mistakes.
Math mistakes. Math errors are common, ranging from simple addition and subtraction to more complex items. Figuring the taxable portion of a pension, IRA distribution or Social Security benefits is more difficult and results in more errors. Taxpayers should always double check their math. Better yet, tax preparation software does it automatically.
Figuring credits or deductions. Taxpayers can make mistakes figuring their Earned Income Tax Credit, Child and Dependent Care Credit, the standard deduction and other items. Follow the instructions carefully. For example, a taxpayer who’s 65 or older, or blind, should claim the correct, higher standard deduction, if not itemizing. The IRS Interactive Tax Assistant can help determine if a taxpayer is eligible for tax credits or deductions.
Incorrect bank account numbers. Taxpayers who are due a refund should choose direct deposit for ease and convenience, but the IRS cautions taxpayers to use the correct routing and account numbers on the tax return.
Unsigned forms. An unsigned tax return isn’t valid. Both spouses must sign a joint return; an exception may apply for some members of the military. Taxpayers can avoid this error by filing their return electronically and digitally signing it before sending it to the IRS. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year usually will not need to enter prior-year information to electronically sign their 2017 tax return.
Filing with an expired ITIN. The IRS will process and treat as timely a return filed with an expired Individual Tax Identification Number, but won’t allow any exemptions or credits. Taxpayers will receive a notice explaining that an ITIN must be current before the IRS will pay a refund. Once the taxpayer renews the ITIN, the IRS will process exemptions and credits and pay an allowed refund. ITIN expiration and renewal information is available on IRS.gov.

Additional resources for tax return extension filers:
IRS Tax Map
IRS Tax Trails
Get Your Electronic Filing PIN

YouTube videos:
Tax Return Errors – Tips to Avoid Them – English | Spanish

You’ll find more tax return self-help information here.

Tax Return Extension Filers Reminder

Reminder for tax return extension filers: Oct. 15 is just around the corner

Monday, October 15, 2018, is the tax return extension deadline for most taxpayers who requested an extra six months to file their 2017 tax return.

For taxpayers who have not yet filed, here are a few tips to keep in mind about the tax return extension deadline and taxes:

Try IRS Free File or e-file. Tax return extension filers can still e-file returns for free using IRS Free File. The program is available only on IRS.gov. Filing electronically is the easiest, safest and most accurate way to file taxes.
Use direct deposit. For taxpayers getting a refund, the fastest way to get it is to combine direct deposit and e-file.
Use IRS online payment options. Taxpayers who owe taxes should consider using IRS Direct Pay. It’s a simple, quick and free way to pay from a checking or savings account. There are other online payment options.
Don’t overlook tax benefits. Taxpayers should be sure to claim all entitled tax credits and deductions. These may include income and savings credits and education credits.
Keep a copy of the tax return. Taxpayers should keep copies of tax returns and all supporting documents for at least three years. This will help when adjusting withholding, making estimated tax payments and filing next year’s return.
File by October 15. File on time to avoid a potential late filing penalty.
More time for the military. Military members and those serving in a combat zone generally get more time to file. Military members typically have until at least 180 days after leaving a combat zone to both file returns and pay any tax due.

You can find other tax return extension filing information at this link.

More information: