Each year, the Internal Revenue Service (IRS) releases an annual list of the schemes and scams being used against U.S. taxpayers every day. It's called the Dirty Dozen. The list is of interest to those who want to avoid being scammed and to those who are interested in how the IRS is handling schemes in which they may have a hand.
In no particular order, let's explore two scams from the Dirty Dozen for 2024:
Scams involving email and texting
Digital practices make it much easier to scam unsuspecting consumers. The Internet of Things (IoT) ranges from your smartphone to your doorbell. The IRS is taking effort to warn consumers about two practices: phishing (email aimed at eliciting a response, by clicking or providing information) and smishing (scams involving SMS messaging on smartphones or text).
Phishing email is a widely known scam, and while a lot of consumers believe they would never fall for a phishing email, it happens all the time. You may receive a phishing email from your accountant or tax preparer, asking you to confirm sensitive contact, banking, or other financial information. Without looking too closely, you may click on a link or provide the requested information.
A smishing text may warn you of fraudulent banking activity or impersonate the IRS, asking you to provide personal contact information concerning a refund.
As you have heard countless times, do not click, or tap on links from senders with whom you are not familiar. Call your bank, your tax attorney, or even the IRS (using their published contact number) when in doubt. The IRS connects with taxpayers primarily through the mail and will not use social media to contact you. Check out the IRS page on avoiding identity theft for more information.
Fly-by-night pandemic relief fraud
Employee Retention Credit (ERC) claims were in style this year. The pandemic-era relief program triggered a cascade of false and inappropriate claims for relief, along with legitimate claims from struggling business owners.
Pop-up marketing businesses catered to the opportunity, leading some business owners to believe there was “free money” available just for asking. Marketers hastily prepared claims, collected their fees, and left town. Fast forward to 2024 and the IRS is meticulously combing ERC claims and pursuing businesses that were ineligible for the program. As noted by the IRS, those who do not voluntarily step up to return funds or create a repayment plan “risk detection by the IRS, which could lead to substantial interest and penalties and increase your risk of criminal investigation and prosecution.”
Stay tuned as we will look at other Dirty Dozen ’24 scams. If you are involved in these or other tax crimes, you already know it. Speak with a skilled criminal tax attorney about your options.
Trusted criminal tax attorneys provide aggressive defense against IRS prosecution
With offices in Cleveland and Chicago, the legal group at Robert J. Fedor, Esq., LLC delivers skilled representation on criminal tax investigations, compliance issues, tax litigation, and issues involving foreign bank accounts. Call 440-250-9709 or contact us online today.
