(WSPA) – The IRS is out with its Dirty Dozen Tax Scams, and his year, there’s one in particular that really hits close to home.
The Dirty Dozen Tax Scams include both fraud that targets the taxpayer like ID theft, and scams where the taxpayer is the perpetrator.
IRS Enrolled Agent Dan Thomas with Jackson Hewitt says he’s had to turn away people who try to manipulate their income level to get more tax credits.
“I send them out the door. I’m not going to have anything to do with this return. I had one guy came in and he had 1099s and he said well I need to add this amount of money to it. He’s asking for me to alter his tax returns for him to give me money, ‘OK so what were your expenses? Well I didn’t have any.’ And he knew what he was about to accomplish, but I didn’t let him,” said Thomas.
Not all preparers are as honest as him.
This month, federal prosecutors hit three Liberty Tax offices in Columbia with a lawsuit. It alleges the offices, which are all owned by the same man, prepared false and inflated refunds by giving clients income from fictional jobs.
“‘It just really makes me wonder who is preparing your taxes. Really do your homework and don’t assume just because there’s a sign on your building that they’re legitimate,” said Dixie Whetsell, a Spartanburg taxpayer.
Another tax scam that makes the Dirty Dozen list is phishing emails that steal the IRS logo and try to get your personal information.
News13 has warned you about the IRS phone scam where con artists threaten you if you don’t pay up. It is still so prevalent. The SC Department of Consumer Affairs says it’s the scam of the year, and they don’t see it slowing down.
Then there’s inflated deductions.
“I never overstate them, but I never understate them either. I have a receipt for everything,” said Wayne Despres, a taxpayer.
But the IRS says too many pad their donations, don’t have documentation, and some even add dependents who don’t even exist.