ach year, we share with you what the IRS calls its “Dirty Dozen” list of tax scams. This year, the pandemic has given rise to new, and even more sophisticated scams. The scams on the 2021 IRS Dirty Dozen list can be encountered at any time during the year, but they peak during tax season(s). With numerous changes impacting taxpayers due to the global pandemic such as extended and inconsistent tax deadlines, various stimulus payments, COVID-related unemployment or economic hardship payments, tax scams continue to occur at an alarming rate and an increasing number of people fall prey to these scams. Don’t be one of them. If it sounds too good to be true, it probably is.
Some scams are complex, with sophisticated algorithms being used to steal identities. Other scams are as simple as picking up the telephone to trap unaware and unsuspecting taxpayers. Once again and not surprisingly, phishing and phone scams are two of the most prevalent ways in which taxpayers have been victimized. As expected, as the country continues to recover from the effects of a global pandemic, many entries on this list are associated with the impacts of COVID-19.
To read the full text of this Duane Morris Tax Accounting Group Alert, please visit the firm website.