2010 “Dirty Dozen” from the IRS

Last Tuesday, March 16, 2010, the Internal Revenue Service issued its annual “dirty dozen” list. This list includes tax scams that taxpayers and tax preparers need to be aware of. The IRS wants to urge taxpayers to be familiar with and avoid these 12 different types of schemes.

IRS Commissioner Doug Shulman said, “Taxpayers should be wary of anyone peddling scams that seem too good to be true. The IRS fights fraud by pursing taxpayers who hide income abroad and by ensuring taxpayers get competent, ethical services from qualified professionals at home in the U.S.”

This year’s “dirty dozen” list included return preparer fraud, hiding income offshore, phishing, filing false or misleading forms, nontaxable social security benefits with exaggerated withholding credit, abuse of charitable organizations and deductions, frivolous arguments, abusive retirement plans, disguised corporate ownership, zero wages, misuse of trusts and fuel tax credit scams.

To see full descriptions of these types of schemes visit: http://www.irs.gov/newsroom/article/0,,id=220238,00.html

Tax Tips Video: Dirty Dozen 2010: http://www.youtube.com/watch?v=10D1XqVmIW0