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IRS Updates Dirty Dozen Scams List For The 2016 Tax Season

By Becky Barton
Published on: 12:19 PST, Feb 7, 2016

The IRS has begun updating their “Dirty Dozen” list for the 2016 tax payer season.

The “Dirty Dozen” is updated each year by the IRS. It lists the most common scams people have dealth with during the previous year.

Illegal scams are among the top causes of IRS audits and penalties. A person who has been unwittingly scammed can pay the price for the actions of the criminals. However, with a little diligence and attention to personal accounts and assets, taxpayers can keep their names clear and let the IRS and the Department of Justice crack down on the frauds and the criminals instead.

The IRS says that these scams tend to peak during tax season, and that those who hire tax preparers are most susceptible to such scams.

“Taxpayers across the nation face a deluge of these aggressive phone scams. Don’t be fooled by callers pretending to be from the IRS in an attempt to steal your money,” said IRS Commissioner John Koskinen said on the subject.

“We continue to say if you are surprised to be hearing from us, then you’re not hearing from us.”

“There are many variations. The caller may threaten you with arrest or court action to trick you into making a payment,” Koskinen said.

Listed below are the most recent updates to the 2016 “Dirty Dozen” list.

  • Identity Theft. Identity theft has been a major concern for more than 10 years, and it seems to get easier for criminals with every advancement in technology. For this reason, identity theft holds the No. 1 spot on this year’s “Dirty Dozen” list. The IRS urges taxpayers to keep a close eye on their bank account activity and alert the authorities immediately at the first sign of suspicious activity.
  • Hiding money or income offshore. For years, the IRS has been on the lookout for taxpayers and preparers who try to avoid or cut their taxes by hiding assets in unnamed accounts. 2016 is no exception. The IRS will likely have this on their “Dirty Dozen” list for as long as offshore accounts are legal in America.
  • Return preparer fraud. Naïve taxpayers could easily fall victim to a crooked tax preparer looking to pocket some extra money, known on the “Dirty Dozen” list as a fraudulent tax preparer. Make sure you can trust the hands into which you place your taxes this season.
  • Phishing scams. Along with bank accounts, the IRS cautions taxpayers to watch their email and social media accounts closely. Beware of any emails, especially from companies or people you do not know that ask for personal information. This is the most common form of phishing, and it is common enough to land on the IRS radar and the “Dirty Dozen” list this year.
  • Phone scams. Criminals use this “Dirty Dozen” list to call people’s homes pretending they are IRS agents, and threaten them to gather personal information. This is another scam that’s been around for years, and the IRS still considers this one a major threat.

“Some schemes may say you’re entitled to a huge refund. These all add up to trouble. Some simple tips can help protect you,” Koskinen said.

Here are a few such simple tips straight from the IRS to avoid the dreaded “Dirty Dozen” scams.

  • Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN).
  • Inquire whether the tax return preparer has a professional credential or organization membership, or attends continuing education classes.
  • Check the preparer’s qualifications.
  • Annual Filing Season Program participants

To find other tips and updates on selecting a credible tax preparer and avoiding tax season scams and activities, visit the IRS website.

[Photo by Justin Sullivan/Getty Images]

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