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Posted on in IRS Scams

Each year, IRS puts out a series of press releases warning taxpayers of twelve schemes they call the "Dirty Dozen." The items on the list can change from year to year, and several typically have to do with taxpayers attempts to game the system by understating income, overstating deductions, engaging in "tax shelter" transactions, and so forth.

But for the past several years, the top three items on the list have been identity theft, phone scams, and phishing schemes - situations in which ordinary people are vulnerable simply because they are trying to comply with the tax laws.

Each year IRS identifies literally millions of returns in which a thief has used someone else's Social Security number to claim refunds. While the agency says it is making progress in detecting and preventing identity theft, "criminals continue to look for increasingly sophisticated ways to breach the tax system," including phishing and phone scams.

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Tagged in: IRS Tax Scam

Prepaid debit cards already have enough controversy surrounding them, and this latest bit of news about tax refunds being frozen for prepaid debit card users isn't going to do any favors for the industry.

Several news outlets, including ABC News, are reporting that the reason for this "funds freeze" is because the IRS is teaming up with the financial industry to crack down on tax fraud.

The problem is, of course, is that this is affecting the nation's poorest Americans...and they are finding that they have very little recourse.

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Posted on in Tax Audits

According to news reports, many physicians who waited till April 13 to file taxes may have become victims of tax fraud.

Many doctors have reported being surprised when they attempted to file the taxes on April 15, and found out that their taxes had already been filed. Filing fraud taxes on behalf of another person is a simple tax fraud scheme that is fairly common. In these schemes, the person then pockets the refunds that the victim was eligible for.

This scheme is fairly simple to operate. The fraudster will access a company's W-2 database, which provides all the data about employees of the firm, their earnings, as well as personal data. With all that information, a person can find it very easy to file returns on behalf of the employee. In fact, some fraud schemes use fraud software that actually automates fraudulent and tax return filing. Some payroll systems are much more vulnerable to hacking than other types of systems.

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Posted on in IRS Scams

We're in the 2014 tax season, and as with every year, this year too, it's important for taxpayers to look out for some of the most common scams out there. The Internal Revenue Service, as it does every year, is warning taxpayers once again to be careful and lookout for tax-related scams that are very often perpetrated using the IRS name.

There are several tax-related scams out there, and these usually emerge in tax season. From e-mail refund schemes that pose as the IRS, to telephone calls from IRS impersonators, taxpayers this year are likely to be targeted through a number of such frauds.

One of the most important things to know to avoid a tax-related scam is that the Internal Revenue Service, a federal agency, does not contact taxpayers by e-mail, and ask them for personal or financial data. If you receive any kind of electronic message, which includes e-mails, text messages, or any private message on your Facebook or Twitter accounts, you can rest assured that this is not the Internal Revenue Service contacting you. Besides, when the Internal Revenue Service contacts you, it does not ask you for personal financial information like your passwords, your personal identification number, and access information for your credit cards and bank account.

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Tagged in: IRS Tax Scam

Posted on in IRS Scams

The Internal Revenue Service is warning about a sophisticated telephone tax scam that is being reported from around the country. The scammer is specifically targeting taxpayers, especially persons who have recently immigrated into the country. Under the scam, people are being informed that they owe money to the Internal Revenue Service, and that the money must be paid promptly via a wire transfer or a preloaded debit card. If the taxpayer refuses to pay, then the caller threatens the person with arrest, deportation or suspension of his license.According to the Internal Revenue Service, taxpayers around the country must be warned about the scam, because these persons are currently operating in all corners of the country. These incidences are being reported from all states, and the Internal Revenue Service wants to inform all taxpayers that it has not designated any persons to make such calls. If you receive a call from someone who claims to represent the Internal Revenue Service, you must know that any person who represents the federal tax agency will never ask you for your credit card number over the phone. He will also never ask you for a prepaid debit card or wire transfer of money. Any such action should alert you to the possibility that the person you are speaking to is trying to defraud you.If you get a call from someone who claims to be from the Internal Revenue Service, asks you money, and threatens to get you arrested, deported, or get your business or driver's license revoked if you don't pay the money immediately, you must know that it is not the IRS you are speaking to at all.The Internal Revenue Service is asking all people who receive such phone calls to call the IRS at 408-866-1810.

Tagged in: IRS Tax Scam
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