Branscome: Hi, I'm Theresa Branscome from the Internal Revenue Service. Every year, the IRS issues the Dirty Dozen. It's a list of the 12 worst tax scams. Here to talk to us about them is Phil Beasley. He's from the Criminal Investigation Division of the IRS. Welcome, Phil.

Beasley: Thank you, Theresa.

Branscome: Phil, what is number one on the list?

Beasley: This year, number one on the list is phishing. Now, that's where criminals are posing as IRS representatives, and they'll send you e-mails claiming to be from the IRS, and in those e-mails they'll ask for personal and financial information. Their intention is to clean out your bank account, rack up charges on your credit card, or even steal your identity.

Branscome: So, how can you tell if you're getting a legitimate e-mail from the IRS?

Beasley: Well, you know, Theresa, that's very easy. The IRS does not initiate contact with taxpayers through e-mail. The IRS doesn't call people and ask them for personal information. We usually only contact you by letter.

Branscome: All right, so, what if you get one of these calls or e-mails?

Beasley: Well, we recommend that you forward the e-mail to phishing@irs.gov. That's irs dot g-o-v. And we're talking about phishing with a "p-h." And if you get a call, send those details also to phishing@irs.gov.

Branscome: Okay, so, what is number two on the Dirty Dozen list?

Beasley: Number two are scams related to the economic-stimulus payment or what most of us call the rebates. These are where criminals are posing, again, to be like the IRS on the phone or in e-mails, and they're telling people that they need to give their bank-account number in order to get a payment. Well, if the taxpayers refuse, the imposters say they cannot get the rebate unless they provide the information.

Branscome: Hmm.

Beasley: Remember, the only way to get the stimulus payment is by filing a tax return. The IRS will not call you or send you an unsolicited e-mail.

Branscome: All right. Number three on the list.

Beasley: Number three on the list is called frivolous arguments. Now, that's where people are making unreasonable and unfounded claims to avoid paying taxes. If you'd like to see a list of the frivolous arguments, go to irs.gov. Now, using any of these arguments in order to avoid or try to avoid paying your taxes could subject you to a $5,000 penalty.

Branscome: Wow. Number four on the list is fuel-tax credit scams. What is that?

Beasley: Well, that's simply excessive fuel-tax-credit claims. It involves claiming a fuel-tax credit where your job, how much you make, or how much you claim for the fuel-tax credit just do not add up.

Branscome: Can I claim the fuel-tax credit?

Beasley: Normally, no. That's generally for farmers and fishermen.

Branscome: Okay. Number five on the list is hiding income offshore.

Beasley: This is all about illegally hiding income in offshore banks and brokerage accounts.

Branscome: Mm-hmm.

Beasley: Or often using financial vehicles such as offshore debit cards, credit cards, and wire transfers. Now, in and of themselves, these are not illegal if the taxes are reported on the money.

Branscome: Okay.

Beasley: But if the money is moved offshore simply to hide it from the government, now that's a problem.

Branscome: So, these are the first five on the Dirty Dozen list. The rest are on irs.gov, right?

Beasley: That's right.

Branscome: Phil, what is your bottom-line message when it comes to the Dirty Dozen?

Beasley: Well, there is no secret formula that gets rid of a person's tax obligations. The law is very, very clear. People must pay their taxes. People do have a right to contest their tax liabilities in court, but no one has the right to disobey the law. Remember, if it sounds too good to be true, it probably is.

Branscome: Okay. Well, thank you very much, Phil.

Beasley: Thanks, Theresa.

Branscome: And thank you all for joining us. I'm Theresa Branscome. You can find out more about the Dirty Dozen on the IRS's official website, www-dot-irs-dot-gov.

Audio File: 2008 Dirty Dozen Tax Scams - Theresa Branscome from the Internal Revenue Service joined by Phil Beasley, 4:13 minutes long. The audio file will open in Windows Player, and you will be able to pause, fast forward, rewind, mute, and control the volume from the interactive player.

IRS Tax Tip 2008-44 – Beware of Tax Scams
 
Podcasts and Text Scripts of Audio Interviews 2008