“Dirty Dozen”: The IRS Lists the Biggest Scams to Watch Out For

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July 1, 2021 Topic: IRS Fraud Blog Brand: Techland Tags: IRSFraudStimulusScamsIdentity Theft

“Dirty Dozen”: The IRS Lists the Biggest Scams to Watch Out For

Taxpayers are asked to be on the lookout for mailbox theft, as well as stimulus check scams.

The Internal Revenue Service has begun releasing its annual list of the “Dirty Dozen” tax-related scams, for which taxpayers are warned to watch.

The list will be released over the course of three days.

"We continue to see scam artists use the pandemic to steal money and information from honest taxpayers in a time of crisis," IRS Commissioner Chuck Rettig said in the release. "We provide this list to alert taxpayers about common scams that fraudsters use against their victims. At the IRS, we are dedicated to stopping these criminals, but it's up to all of us to remain vigilant to protect ourselves and our families.”

The scams are actually divided into four categories: Scams related to the pandemic, cons aimed at stealing personal information, scams involving fake charities and fraud aimed at seniors and immigrants, and “schemes that persuade taxpayers into unscrupulous actions.”

The initial announcement warns taxpayers against falling for scams related to economic impact payments, also known as stimulus checks. They are encouraged to ignore “any text messages, random incoming phone calls or emails inquiring about bank account information or requesting recipients to click a link or verify data should be considered suspicious and deleted without opening.”

Taxpayers are also asked to be on the lookout for mailbox theft, as well as stimulus check scams.

“The IRS won't initiate contact by phone, email, text or social media asking for Social Security numbers or other personal or financial information related to Economic Impact Payments,” the announcement says.

The agency also, in the announcement, warns about unemployment fraud.

“Because of the COVID-19 pandemic, many taxpayers lost their jobs and received unemployment compensation from their state. However, scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Payments made on these fraudulent claims went to the identity thieves,” the letter says.

Axios recently reported that unemployment fraud was such a problem that as much as half of the unemployment benefits distributed since the start of the pandemic may have been stolen, with some of that money ended up in the hands of international crime syndicates. However, there has been much questioning of whether that estimate is true.

“The IRS reminds taxpayers to be on the lookout for receiving a Form 1099-G reporting unemployment compensation that they didn't receive,” the IRS said. “For people in this situation, the IRS urges them to contact their appropriate state agency for a corrected form. If a corrected form cannot be obtained so that a taxpayer can file a timely tax return, taxpayers should complete their return claiming only the unemployment compensation and other income they actually received.”

Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Image: Reuters