IRS Names Top 12 Income Tax Scams for 2008

Internet ploys designed to steal financial and personal information tops the list of income tax scams uncovered by IRS auditors and criminal investigators this year, according to the IRS’ “Dirty Dozen” list for 2008. 

The IRS has received more than 30,000 “phishing” e-mails forwarded to the agency from taxpayers. In a phishing scam, a criminal sends an e-mail that appears to come from a legitimate source, in some cases from the IRS, requesting an individual’s personal or financial information. The criminal then uses the information obtained to empty the victim’s bank account, run up credit card charges, and apply for loans or credit in the victim’s name. The IRS has uncovered more than 1,500 different phishing schemes.

Scam artists are also posing as IRS representatives by phone or e-mail, trying to trick taxpayers into revealing their personal financial information by falsely telling them that they must provide such information to get the economic stimulus tax rebate. The IRS will not contact taxpayers by phone or e-mail about their stimulus payment. In most cases, eligible individuals will not have to do anything more than file a 2007 federal tax return. 

Phony fuel tax credits, abuses in retirement plan arrangements, hiding income offshore, and disguised corporate ownership scams also made the list.

Read the full Dirty Dozen.

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