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- The US Internal Revenue Service has published their yearly ranking of tax
scams, called Dirty Dozen, in an effort to remind taxpayers to be cautious as
there are many schemes designed to cheat them this tax period.
The list which is compiled by the IRS every year also
contains a wide range of common tax scams that people can encounter anytime.
But the fraudulent claims usually increase during the time people file their
tax returns. Con artists will try to cheat people either through online, email
messages, flyers, word of mouth or personal encounter. They are armed with
misleading promises about free money or lost refunds.
The most complex and accounts for the most number of victims
is the case of identity theft. IRS has seen increasing number of such cases
where the thieves use legitimate taxpayers' information to file a return and
claim a fraudulent refund. A notice from the IRS will usually be sent to
a taxpayer if more than one return was filed in his or her name, or if he or
she received salary from an unknown employer.
Suspicious preparers of return have been known to steal
their clients' refunds or charge huge amounts for preparing the return on the
client's behalf. They basically draw potential clients by promising guaranteed
or increased refunds. A number of federal courts have already issued hundreds
of injunctions while the Justice Department has many pending complaints against
others.
Because of this, taxpayers are warned to choose carefully
who to hire as tax preparer. As a preventive measure, every paid preparer are
required to have a PTIN (Preparer Tax Identification Number) that he needs to
put on the returns he prepares.
Scammers typically target the elderly and persons who have
low income in order to bring false hopes and charge them for the 'advice'. But
victims always end up disappointed afterwards.
For instance, several years ago, one of the most widespread
tax frauds toyed with the concept that paying tax is not required at all but
only voluntary. Furthermore, victims were told that if you put a specific
language on your tax return, IRS would not tax you. But as part of the whole
scam, you have to pay some amount or other to get the language and the proper
forms.
The primary source of identity theft was discovered to be in
hospitals where patient information is not secured properly.
IRS announced last month a national crack down on suspected
perpetrators of tax fraud as part of their efforts to protect taxpayers.
Together with the Department of Justice's Tax Division, they have created a
protection unit and a hotline dedicated for fraud issues to assist taxpayers.
Norton Scientific Reviews is maintained by a
blogger-cum-security-specialist who keeps a close watch on the tech industry
and the trend of badware. This blog aims to educate the public and keep the
pros up-to-date with regards to malicious software and their respective
anti-virus counterparts.
In this digital age, being in-the-know is the most
elementary step to avoid getting pwned. Norton Scientific Reviews covers even
the most basic concepts on malware and infection prevention for newbies. While
for tech junkies, there are also in-depth software reviews and jargon-filled
tech reports on various topics.
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