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.