Tim’s Tax News on the Tenth – June 2024

For over two decades, the IRS has been issuing its yearly list of its perceived prevalent tax scams. The 2024 list has been announced by the IRS and the twelve are listed below.

1. Bogus tax avoidance strategies include syndicated conservation easements, micro-captive insurance
2. Fraudulent offshore schemes include Maltese retirement arrangements, digital assets
3. High-income filers vulnerable to illegal tax schemes; face risk from improper art donation deductions, charitable remainder annuity trusts, monetized installment sales
4. IRS warns tax pros, businesses to be cautious of ongoing spearphishing attacks to gain sensitive information; warns of surge in "new client" scams
5. Taking tax advice on social media can be bad news for taxpayers; inaccurate or misleading tax information circulating
6. IRS urges taxpayers to not fall prey to untrustworthy tax preparers; "ghost preparers" can disappear with taxpayer cash, information
7. Fake charities exploiting taxpayer generosity
8. Compromise "mills" that falsely claim their services are necessary to resolve IRS debt
9. False Fuel Credit Claims
10. "Helpful" scammers offering to set up an online account
11. Aggressive ERTC promoters who dupe taxpayers into making questionable Employee Retention Credit claims; risks continue for small businesses; special withdrawal program remains available
12. Phishing and smishing scams

As part of the Dirty Dozen awareness effort regarding tax schemes and unscrupulous tax return preparers, the IRS urges individuals to report those who promote abusive tax practices and tax preparers who intentionally file incorrect returns.

To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242 or mail or fax a completed Form 14242 and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations. Mail the material to: Internal Revenue Service Lead Development Center, Stop MS5040, 24000 Avila Road, Laguna Niguel, California 92677 3405.

Taxpayers and tax professionals can also submit this information to the IRS Whistleblower Office, where they may be eligible for a monetary award. 

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 30 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

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