The IRS’ Dirty Dozen has nothing to do with eggs or outlaw motorcycle gangs!  The IRS’ Dirty Dozen has everything to do with tax scams. Taxpayers who get involved in illegal tax scams can lose their money. They can face stiff penalties, interest and even criminal prosecution. We’ve all heard, “If it sounds too good to be true, it probably is.” This time the Internal Revenue Service really is your friend. They want you to be safe and informed. A couple of weeks ago I wrote about fraudulent phone calls. Phony phone calls are just one of the rotten eggs the Internal Revenue Service wants to warn you about.  Telephone scams are number two on this list. Identity Theft tops the list. An identity thief uses YOUR identity to illegally file a tax return and claim a refund. If you or someone you know has fallen victim to identity theft, contact me for further help. Phishing is a term used to describe unsolicited emails or fake websites that appear to be legitimate. Scammers will try to lure you, trick you, into providing them with your personal and financial information. Know that the IRS does not begin contact with you in this way. They will send you a letter by US Mail. Then YOU get to respond. Once you contact them, they may telephone you back because YOU will have given them your contact information. False promises of “free money” or inflated refunds is another common tax-season scam. Scam artists often pose as tax preparers during tax time. They lure their victims in by promising large refunds. Taxpayers who buy into this kind of scheme often end up paying back the refund PLUS interest PLUS penalties. Take care when you choose someone to prepare your return. Ask them questions to help you feel comfortable helping you with this important matter. The IRS has said that about 60 percent of taxpayers use professionals to prepare their tax returns. Most return preparers, like myself, provide honest service to their clients. But there are rotten eggs in the tax business. Dishonest preparers take advantage of unsuspecting taxpayers. The result can be refund fraud or identity theft. Be sure you only use a tax prepare that will sign your return. They must also enter their Prepare Tax Identification Number, or PTIN. If you pay them, they must sign as the paid preparer. If not, they are as dirty as a motorcycle outlaw. Other tax scams involve hiding income offshore, out of the country. Claiming false income, expenses or exemptions is committing tax fraud. How much money is enough to go to jail? Other tax protesting citizens claim zero wages. They take frivolous arguments in defense of a losing positon on their tax return. Sometimes they set up abusive trusts to hide their income. Of course, it is impossible to predict what the next and newest tax scam will be. Your best defense is to remain vigilant. You sign your tax returns under the penalty of perjury. What is your freedom worth to you? Mine is priceless. If you’d like to hear my radio show about this very topic, go to my “Latest Audio” .  My show airs every Friday at 10amPT/11amET. Past shows can also be found on my website – just click on the Radio!