August 5, 2021 1:37 am

2021 Dirty Dozen Tax Scams

Each year the IRS compiles a list of the “worst of the worst tax scams.” This year, the scams are grouped into categories:

  • Pandemic-related scams, such as Economic Impact Payment theft and unemployment fraud leading to inaccurate taxpayer Form 1099-Gs (IR-2021-135).
  • Personal information cons, including phishing scams (sent by email, text message or social media post), ransomware, and phone ‘vishing’ (IR-2021-137).
  • Ruses focusing on unsuspecting victims, such as fake charities, senior/immigrant fraud, and offer-in-compromise “mills” (IR-2021-141). The IRS also warns against unscrupulous tax return preparers.
  • Schemes that promote abusive structures, such as syndicated conservation easements (IR-2021-144). Scams also include improper claims of business credits and improper monetized installment sales.
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Tax Glossary

Capital gain or loss

The difference between amount realized and adjusted basis on the sale or exchange of capital assets. Long-term capital gains are taxed favorably. Capital losses are deducted first against capital gains, and then again up to $3,000 of other income.

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