IRS Warns Taxpayers Over 'Dirty Dozen' Tax Scams

by Mike Godfrey, Tax-News.com, Washington

21 February 2003

Speaking this week, acting IRS Commissioner, Bob Wenzel warned US taxpayers against the dangers of the of the 'dirty dozen' tax scams, illegal tax minimisation schemes which crop up again and again.

'Year after year, con artists across the nation try pulling a fast one on honest taxpayers with different types of miracle tax solutions. Don't be fooled by the 'dirty dozen' and other misleading scams. There is no secret way to get out of paying taxes.'

In a statement released on Wednesday, the IRS warned that the most common scams used to minimise personal income tax liabilities include: undeclared offshore credit cards and other vehicles, identity theft by tax preparers, phony tax payment cheques (known as sight drafts), fake slavery reparation schemes, failure to withhold tax from wages, and improper deductions for home-based businesses.

Other popular schemes, according to the Internal Revenue Service, include the impersonation of IRS agents for the purposes of collecting 'tax payments', tax protests, and the sharing or borrowing of dependants on income tax returns.

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