Every year there are a list of scams the IRS puts people on alert about. For the 2018 tax year many of the same warnings are back but there are also some new ones. Here are some of the more common scams that the IRS is warning us about this year.
Most of the scams that the IRS alerts us about are scams that tax payers or preparers use to scam the IRS. The IRS warns of these because you can get into a lot of trouble if you perpetrate these scams and if you fall victim to an unscrupulous tax preparer.
People who use deductions should be aware that a lot of unscrupulous tax preparers can overstate deductions including charitable contributions, business expenses and other credits that the tax payer is not entitled to.
Along the same lines, the IRS warns tax payers to be on the lookout for tax return preparers who don’t understand taxes or trick people into taking credits or deductions they aren’t entitled to.
Phone scams have been around for a while, but some people are still falling for them, so they are still being warned about. The scam involves criminals impersonating the IRS and threatening arrest, deportation, or drivers license revocation if the tax payer doesn’t pay a phony tax bill. These criminals even use caller ID to make it look like the call is coming from the IRS and sometimes give fake IRS titles and badge numbers to appear legitimate. They can sometimes have the tax payers name, address, and other information. Do not fall for this, it is well known that the IRS does not contact people by phone. The IRS will always conduct this kind of business through the U.S. mail.
There are many scams out there and some of them are quite convincing. Just remember that the IRS does not come to your house or call on the phone, if people contact you in these ways claiming they are the IRS, it’s a scam.