WASHINGTON - The Internal Revenue Service (IRS) recently issued its 2008 list of the 12 most egregious tax schemes and scams, highlighted by Internet phishing scams and several frivolous tax arguments.
 
Topping this year's list of scams is phishing, which encompasses numerous Internet-based ploys to steal financial information from taxpayers. New to the "Dirty Dozen" this year is a scheme, which IRS auditors discovered, that relates to unreasonable and/or excessive fuel tax credit claims.
 
"Taxpayers should be wary of scams and promises to avoid paying taxes that seem too good to be true," Acting IRS Commissioner Linda Stiff said. "There is no secret formula that can eliminate a person's tax obligations. People should be wary of anyone peddling any of these scams."
 
Tax schemes can lead to problems for both scam artists and taxpayers. Tax return preparers and promoters also risk significant penalties, interest and possible criminal prosecution.
 
The IRS urges taxpayers to avoid these common schemes:
 
 (1) "Phishing" via Internet.
 (2) Economic Stimulus Payment scams.
 (3) Frivolous arguments.
 (4) Fuel Tax Credit scams.
 (5) Hiding income offshore.
 (6) Abusive retirement plans.
 (7) "Zero wages" claims.
 (8) False claims for refunds and abatements.
 (9) Return preparer fraud.
(10) Disguised corporate ownership.
(11) Misuse of trusts.
(12) Abuse of charitable organizations and deductions.
 
Click here for more detailed descriptions and information

 (Source: IRS IR-2008-41)

Copyright 2008 by Lawrence Yerkes. All Rights Reserved.