The IRS started releasing its annual list of “Dirty Dozen” tax scams June 1, which highlights a variety of common scams. The first four scams on the list have been released, and eight more will be released in the coming days, according to www.irs.gov.
The first series focuses on four transactions that are wrongfully promoted and will likely attract additional agency compliance efforts in the future. They involve charitable remainder annuity trusts, Maltese individual retirement arrangements, foreign captive insurance and monetized installment sales.
This year’s “Dirty Dozen” also will include scams focused on the average taxpayer and on more complex arrangements promoters market to higher-income individuals.
Taxpayers are encouraged to review the list and look out for these scams during the year. Taxpayers also should remember they are legally responsible for what is on their tax return—even if it is prepared by someone else—and should choose a reputable tax preparer.
Learn more about how to protect yourself from the “Dirty Dozen” tax scams.
