IRS “Dirty Dozen” Scams to Look Out for in 2020

Oct 10, 2020 | News & Insights, Uncategorized

The IRS has posted a list of “dirty dozen” scams for 2020 that you, the taxpayer, need to be weary of. You can search the IRS article by going to www.irs.gov/newsroom/dirty-dozen. The article is listed under IR-2020-160. Below, we have chosen a handful of categories that we see occurring more often than others.

 

Tax debt resolution companies:

Some companies exaggerate “pennies on the dollar” resolution for your back taxes through an Offer In Compromise (OIC). However, an OIC has strict requirements before the IRS will consider or even accept. Many OICs are oftentimes rejected by the IRS. Be careful of who you hire because it may leave you with more cost than benefit.

 

Threatening IRS calls:

The IRS will never threaten or ask for immediate payment methods over the phone. It will not call about unexpected refunds or Economic Impact Payment (EIP). You should verify any threats or demands by calling the IRS yourself.

 

EIP or refund theft:

2020 is a prominent year for criminals to attempt theft of EIPs from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Stolen information is used to file fraudulent returns in order to obtain the EIP payments. The IRS has a website dedicated to the EIP payment and information, as well as an identity theft guide.

For EIP information, go to: www.irs.gov/coronavirus/economic-impact-payments.

For ID theft information, go to: www.irs.gov/newsroom/taxpayer-guide-to-identity-theft.

 

“Ghost” returns:

By law, paid preparers are required to provide his or her credentials on a prepared return. This includes a signature and Preparer Tax Identification Number (PTIN). A return that is not signed and credentialed by a paid preparer can leave the taxpayer with consequences such as over-inflated numbers that will cause tax issues. In this situation, the taxpayer who has paid for professional services is left holding the bag. Any legitimate preparer will not hesitate to provide his or her credentials.

 

Remember, the IRS will never call to threaten or ask for immediate payments. It typically sends you mail through the United States Postal Service. Depending on the progress of your case, it will be certified mail. Always verify information with your bank and the IRS by calling them yourself. Do not call numbers provided on suspicious mail.

 

If you are not sure whether something is legitimate or not, you can try and research for yourself, or you give us a call, and we will be happy to point you in the right direction.

Get a Free Legal Consultation

Contact us for a free consultation with an attorney, and let us take some of the stress off your shoulders!

About the Author

Christa Page

Founder | Dedicated to setting my clients up for success through proper education, support, and knowledge for the future.

Related Articles

Your Rights as a Taxpayer

Whether you currently owe taxes or expect to owe taxes in the future, you should know that you have guaranteed rights as a taxpayer when the Internal Revenue Service (IRS) begins the collection process against you. The Taxpayer’s Bill of Rights is specified in IRS...

CARES Act

In response to the global COVID-19 pandemic that has ravaged our country in 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Coronavirus Relief Fund (Fund) and appropriated $150 billion to the Fund. As part of the...

More Resources

Your Rights as a Taxpayer

Whether you currently owe taxes or expect to owe taxes in the future, you should know that you have guaranteed rights as a taxpayer when the Internal Revenue Service (IRS) begins the collection process against you. The Taxpayer’s Bill of Rights is specified in IRS...

CARES Act

In response to the global COVID-19 pandemic that has ravaged our country in 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Coronavirus Relief Fund (Fund) and appropriated $150 billion to the Fund. As part of the...