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Saturday, March 30, 2013

IRS Releases the Dirty Dozen Tax Scams for 2013

WASHINGTON — The Internal Revenue Service today issued its annual
"Dirty Dozen" list of tax scams, reminding taxpayers to use caution
during tax season to protect themselves against a wide range of
schemes ranging from identity theft to return preparer fraud.
The Dirty Dozen listing, compiled bythe IRS each year, lists a variety
of common scams taxpayers can encounter at any point during the year.
But many of these schemes peak during filing season as people prepare
their tax returns.
"This tax season, the IRS has stepped up its efforts to protect
taxpayers from a wide range of schemes, including moving aggressively
to combat identity theft and refund fraud," said IRS Acting
Commissioner Steven T. Miller. "The Dirty Dozen list shows that scams
come in many forms during filing season. Don't let a scam artist steal
from you or talk you into doing something you will regret later."
Illegal scams can lead to significantpenalties and interest and
possible criminal prosecution. IRS Criminal Investigation works
closely with theDepartment of Justice (DOJ) to shutdown scams and
prosecute the criminals behind them.
The following are the Dirty Dozen tax scams for 2013:
Identity Theft
Tax fraud through the use of identity theft tops this year's Dirty
Dozen list. Identity theft occurs when someone uses your personal
information such as your name, Social Security number (SSN) or other
identifying information, without your permission, to commit fraud or
other crimes. In many cases, an identity thief uses a legitimate
taxpayer's identity to fraudulently file a tax return and claim a
refund.
Combating identity theft and refundfraud is a top priority for the
IRS, and we are taking special steps to assist victims. For the 2013
tax season, the IRS has put in place a number of additional steps to
prevent identity theft and detect refund fraud before it occurs. We
have dramatically enhanced our systems, and we are committed to
continuing to improve our prevention, detection and assistance
efforts.
The IRS has a comprehensive and aggressive identity theft strategy
employing a three-pronged effort focusing on fraud prevention, early
detection and victim assistance. We are continually reviewing our
processes and policies to ensure that we are doing everything possible
to minimize identity theft incidents, to help those victimized by it
and to investigate those who are committing the crimes.
The IRS continues to increase its efforts against refund fraud, which
includes identity theft. During 2012, the IRS prevented the issuance
of $20 billion of fraudulent refunds, including those related to
identity theft, compared with $14 billion in 2011.
This January, the IRS also conducted a coordinated and highly
successful identity theft enforcement sweep. The coast-to-coast effort
against identity theft suspects led to 734 enforcement actions in
January, including 298 indictments, informations, complaints and
arrests. The effort comes on top ofa growing identity theft effort
that led to 2,400 other enforcement actions against identity thieves
during fiscal year 2012. The Criminal Investigation unit has devoted
more than 500,000 staff-hours to fighting this issue.
We know identity theft is a frustrating and complex process
forvictims. The IRS has 3,000 people working on identity theft related
cases — more than double the number in late 2011. And we have trained
35,000 employees who work with taxpayers to help with identity theft
situations.
The IRS has a special section on IRS.govdedicated to identity theft
issues, including YouTube videos, tips for taxpayers and an assistance
guide. For victims, the information includes how to contactthe IRS
Identity Protection Specialized Unit. For other taxpayers, there are
tips on how taxpayers can protect themselves against identity theft.
Taxpayers who believe they are at risk of identity theft due to lost
or stolen personal information should contact the IRS immediately so
the agency can take action to secure their tax account. Taxpayers can
call the IRS Identity Protection Specialized Unit at 800-908-4490.
More information can be found on the special identity protection page
.
Phishing
Phishing is a scam typically carried out with the help of unsolicited
email or a fake website that poses as a legitimate site to lure in
potential victims and prompt them to provide valuable personal and
financial information. Armed with this information, a criminal can
commit identity theft or financial theft.
If you receive an unsolicited email that appears to be from either the
IRS or an organization closely linkedto the IRS, such as the
Electronic Federal Tax Payment System (EFTPS), report it by sending it
to phishing@irs.gov .

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