Miami Accounting Firm – Presents Tax Scams 2018
Every year, the IRS releases a “Dirty Dozen” list with the biggest tax targeting taxpayers, small businesses and even tax preparing professionals. For 2018, your Miami Accounting Firm found out phishing schemes, phones scams and identity theft made the list.
Miami Accounting Firm – Phishing attempts are always on the list, where scammers use fake emails and websites to steal personal information. This year though, increasingly, tax and payroll professionals as well as schools and HR employees are targeted. Let’s take a closer look into the “Dirty Dozen” list and find out how you can protect yourself.
Fake charities and nonprofit organizations:
This year, the IRS is asking everyone to watch out for scammers pretending to represent (fake) charities. These folks take advantage of people’s goodwill, especially after natural disasters such as the recent hurricanes and wild fires. These fraudsters go as far as creating fake websites to support their claims for being a legit nonprofit organization and to seem credible. The IRS’ and your Miami Accounting Firms’ advice? Never give away your personal information such as credit cards, social security or bank account number.
Phone scams impersonating IRS:
People are trying to impersonate IRS representatives, calling unsuspecting Americans nationwide. These impersonators are threatening arrest, deportation even revoking driver’s licenses if the person they’re targeting won’t pay a fake tax bill. These phony representatives use fake called ID numbers to try to add credibility, they give out fake IRS titles and badge numbers. They already have the taxpayer’s personal information, so many people believe them.
This tax scam 2018 is defined as someone using another person’s stolen social security number or taxpayer identification to file a fraudulent return claiming a refund. Your Miami Accounting Firm reminds you that this “Dirty Dozen” item also includes Forms 1120, U.S. Corporation Income Tax Return being filed for businesses.
Inflated tax deductions:
Unlike your Miami Accounting Firm, some accountants are fraudulent. In order to attract new clients, they lure unsuspecting tax payers by promising inflated tax refunds. This scam 2018 targets older people and low-income tax payers are usually the target because they’re not obliged to file. Some accountants even pocket the tax refunds.
Offshore tax cheating:
Another one of the “Dirty Dozen” tax scam 2018 is avoiding taxes by hiding funds or other assets in unreported offshore accounts, in banks, brokerage accounts or nominee entities accessible by debit/credit cards or wire transfers.
Fake forms or falsified income:
Two types of scams are at work under this tax scam category. One, falsifying self-employment or wage income. Second, filing fake forms 1099-MISC where fraudsters tell taxpayers about a fake account for which they can only redeem money by using a fake financial instrument like a bonded promissory note that aims to be a debt payment for credit card or mortgage debt.
Falsely padding deductions:
Overstating deductions such as donations, business expenses or claiming credits a person is not entitled to falls under this tax scam 2018.