April 10, 2023 1:08 am

Dirty Dozen Tax Scams

Late in March 2023, the IRS began announcing the annual list of 12 tax scams and schemes that taxpayers should avoid during tax season and throughout the year. The scams noted this year are not dramatically different from those in prior years. They include:

  1. Erroneous employee retention credits claimed through ERC mills (IR-2023-49)
  2. Scammers using email and text messages to trick people during tax season (IR-2023-51)
  3. Scammers offering “help” to set up online IRS accounts (IR-2023-54)
  4. Third-party promoters of false fuel tax credit claims (IR-2023-55)
  5. Fake charities (IR-2023-57)
  6. Shady tax return preparers (IR-2023-59)
  7. Tax schemes promoted on social media encouraging false claims (IR-2023-61)
  8. Spearfishing aimed at tax pros and businesses (IR-2023-62)
  9. Offer-in-compromise mills (IR-2023-63)
  10. Schemes aimed at high-income taxpayers (e.g., charitable remainder trusts; monetized installment sales carry) (IR-2023-65)
  11. Abusive tax avoidance schemes (IR-2023-67)
  12. Schemes with international elements (IR-2023-71)
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Tax Glossary

Short sale

Sale of borrowed securities made to freeze a paper profit or to gain from a declining market.

More terms