The IRS Dirty Dozen Tax Scams: False Claims For Refunds

Each year, the Internal Revenue Service releases a list of the 12 most popular tax scams for the year. The 2008 list is out, and I thought it would be fun to go through them individually to show you how criminals are trying to take advantage of taxpayers. The basic idea behind all of these scams is simple: prey on a taxpayer's fear of the IRS or their desire to avoid paying taxes.

Use the information here to help avoid being taken advantage of by a scammer who wants your money. And use this basic rule of thumb for any offer or communication regarding taxes: If it sounds too good to be true, it probably is. Don't get fooled by claims regarding mysterious refunds or tax bills. When in doubt contact the IRS directly for help with your situation.

Some tax cheats suggest that taxpayers file for refunds on tax returns that they've never even filed. Hello! In order to get a refund you've got to actually file the tax return first. And if the IRS calculates your taxes for you because you haven't filed your own return, don't think that you can just ignore their numbers and still demand a refund of all taxes you've paid in. It just doesn't work that way, and filing false claims for refunds can get you in a lot of trouble.