The IRS released its annual “Dirty Dozen” list of tax scams on Tuesday, reminding taxpayers to exercise caution as tax season sets in.
Each year, phony businesses set up temporary shop with the sole purpose of stealing your money. Now the Internal Revenue Service (IRS) is advising you to be on the lookout for phony tax preparers.
The IRS is tackling a rapidly growing problem — tax-related identity theft. Last year, there were more than 640,000 incidents of tax fraud; most involving the theft of social security numbers to file false tax returns claiming monies due.
If you wanted to be ‘ahead of the game’ and have already filed your tax return you may have to wait a week longer to get your refund.
The government’s Free File tax return program is now open. Free File allows people, within a certain tax bracket, to have their federal tax return prepared for free.
If you earn less than $200,000 a year, there’s a strong chance you don’t have to worry about an Internal Revenue Service audit. But if you make more than $1 million annually, the odds have been rising that you’ll be hearing from the tax man.
The IRS plans to save themselves almost $10 million next year by discontinuing sending out tax return forms and information by mail.
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