What is the Dirty Dozen?
The IRS is promoting their yearly Dirty Dozen list, which lays out common scams that honest taxpayers need to be aware of to prevent from falling prey. The IRS releases one of 12 common tax scams off of the list daily. The annual list of schemes and scams is aimed to raise awareness to protect taxpayers from false promoters and con artists. The scams and schemes highlighted tend to put taxpayers at risk for identity theft or in a financial crisis. See below for the 2023 Dirty Dozen tips.
Employee Retention Credit
Taking number one on the Dirty Dozen tax scam list is the Employee Retention Credit (ERC). There have been attempts to scam taxpayers by conning ineligible people and businesses to claim the credit.
Phishing and Smishing
Coming in at number two on the IRS Dirty Dozen list is scammers using email and text messaging to trick people, more commonly known as phishing and smishing.
Scammers Offering Help
The third Dirty Dozen tip from the IRS warns taxpayers about scammers offering “help” setting up an Online Account at IRS.gov. Falling into this trap will put taxpayers at risk for identity theft.
Promoters of False Fuel Tax Credit Claims
Number four on the 2023 Dirty Dozen list of tax scams comes with warnings of third-party promoters of false fuel tax credit claims.
Beware of Fake Charities
Number five on the Dirty Dozen list for 2023 is warnings of scammers creating fake charities to exploit taxpayers.
Carefully Choose a Tax Preparer
The sixth Dirty Dozen tip from the IRS reminds taxpayers to carefully choose their tax preparers.
Think Twice Before Taking Advice On Social Media
The seventh day of the Dirty Dozen warns taxpayers to think twice before taking advice on social media that could lure them into compromising tax situations.
Be Aware of Spearphishing
Coming in at number eight on the dirty dozen list the IRS is urging tax professionals and other businesses to be aware of spearphishing emails.
Offer in Compromise (OIC)
Taking number nine of the Dirty Dozen list provided by the IRS is watching out for Offer in Compromise (OIC).
Charitable Remainder Annuity Trusts and Monetized Installment Sales
The tenth dirty dozen tip from the IRS: Watch out for schemes aimed at high-income filers.
Bogus Tax Avoidance Strategies
Number 11 on the IRS Dirty Dozen list is to beware of abusive tax avoidance schemes.
Schemes with International Elements
Closing out the Dirty Dozen list this year the IRS is highlighting bogus tax avoidance strategies, also known as small or micro-captive insurance arrangements.