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.
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
The federal government has a tax credit program related to certain nontaxable uses of fuel. This credit is most often legitimately used by farmers, as it was intended to be used. But there are scammers out there who may convince you that you can also claim this credit, even when you don’t really qualify for it. Be careful to
follow all the rules related to this credit, and when in doubt, contact a reputable tax professional to help you determine if you legitimately qualify for the fuel tax credit.