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The Top Tax Scams of 2022 – IRS makes the “Dirty Dozen” List

Unfortunately every tax season there is a plethora of scams and other plots against the beloved Internal Revenue Service. 2022 saw the classic schemes that are well known such as email scams or people simply neglecting to file their tax returns. Some other oldies that are seen on the IRS list are a variety of different tax debt schemes as well as some businesses involved in fraudulent activity.

At first glance, the dirty dozen list looks like the same report that the IRS comes out with every year that portrays the same types of fraud and schemes we have seen the year prior. In 2022 however, there are quite a few new members to the list that are unfamiliar to the IRS, such as the wealthier class evading taxes, along with several shady investments overseas, so without further ado, here is a list of some of 2022’s dirtiest frauds and schemes.

Money in Malta

This filing season observed a lot of U.S. filers trying to evade taxes by contributing to foreign retirement arrangements in countries such as Malta. This is due to some local laws in some nations that allow unlimited contributions and sometimes even accept contributions in forms other than cash. If a taxpayer improperly asserts his foreign arrangement and claims it as a pension fund, the IRS ultimately misses out on that money when it goes unnoticed.

Corrupt Preparation

Corrupt tax preparers are often seen year after year, which is why it is extremely vital to choose a trusted accountant with a good reputation. In these instances, crooked companies claim they can resolve any tax a person may owe for a very small fee. When filers agree to do business with these corrupt companies, they wind up spending a lot more money for a refund than if they would have gone the typical route and find a nice CPA firm nearby. That is why the IRS always warns to be wary of promises of hefty refunds for a low cost.

Phony Communications

Fake calls, texts, and emails from the “IRS” have been running rampant for several tax seasons. The main goal of the criminals that run these scams is to cause people to act before they think. This year we saw the classical threatening phone calls with phony caller IDs claiming to be from the IRS. The Covid pandemic has also allowed for new fraudulent communication, to join the party, and it is through text messages. Many people this year have reported they received text messages telling them to click on the link to receive their stimulus payment. The crooks involved in this scam want the filer to enter in personal tax information so they can try to gain access.

Wrap Up

As we look back on last year’s filing season, it is always of great importance to mention the fraud that has taken place. The IRS wants to be transparent with these manners to warn filers if any of these problems pop up next year. Keeping an open line of communication between you and your accountant or advisor can very much help you avoid being a victim of these schemes. It will also help prevent any mistakes that may lead the IRS to think an innocent filer is a crook, due to a filing mistake.

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