April 10, 2023 1:08 am

Dirty Dozen Tax Scams

Late in March 2023, the IRS began announcing the annual list of 12 tax scams and schemes that taxpayers should avoid during tax season and throughout the year. The scams noted this year are not dramatically different from those in prior years. They include:

  1. Erroneous employee retention credits claimed through ERC mills (IR-2023-49)
  2. Scammers using email and text messages to trick people during tax season (IR-2023-51)
  3. Scammers offering “help” to set up online IRS accounts (IR-2023-54)
  4. Third-party promoters of false fuel tax credit claims (IR-2023-55)
  5. Fake charities (IR-2023-57)
  6. Shady tax return preparers (IR-2023-59)
  7. Tax schemes promoted on social media encouraging false claims (IR-2023-61)
  8. Spearfishing aimed at tax pros and businesses (IR-2023-62)
  9. Offer-in-compromise mills (IR-2023-63)
  10. Schemes aimed at high-income taxpayers (e.g., charitable remainder trusts; monetized installment sales carry) (IR-2023-65)
  11. Abusive tax avoidance schemes (IR-2023-67)
  12. Schemes with international elements (IR-2023-71)
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Tax Glossary

Installment sale

A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.

More terms