The 2010 Dirty Dozen - IRS' Top Tax Scams

Every year, the IRS releases a list of the top tax scams, known as the "Dirty Dozen." Here is a look at this years list:

1. Return Preparer Fraud
2. Hiding Income Offshore
3. Phishing
4. Filing False or Misleading Forms
5. Nontaxable Social Security Benefits with Exaggerated Withholding Credit
6. Abuse of Charitable Organizations and Deductions
7. Frivolous Arguments
8. Abusive Retirement Plans
9. Disguised Corporate Ownership
10. Zero Wages
11. Misuse of Trusts
12. Fuel Tax Credit Scams

If you find yourself preparing your tax return and have a transaction, or multiple transactions, that look like one of these listed transactions you should proceed with great caution and seek a tax professional.

The majority of these listed transactions serve no legitimate purpose and will all but certainly result in penalties if a taxpayer engages in an abusive transaction.

If you suspect that tax fraud, you can file a Form 3949-A with the IRS. 

For further details of these transactions, see the IRS website here.