Daily Tax Update - February 07, 2006

Today, the IRS released its annual list of the most "notorious" tax scams. The IRS stated that two new tax schemes appear on the list for 2006 including "zero wages" and "Form 843 tax abatement"–– schemes in which filers use IRS forms to claim that their tax bills have been wrongly inflated. Two tax scams were not on the list this year due to court cases against a number of the promoters in "claim of right" and "corporation sole" schemes.

  • IRS Commissioner Mark Everson said, "When it comes to taxes, everyone has to pay their fair share. I urge taxpayers not to be taken in by hucksters who promise to lower or eliminate taxes. Getting caught up in the Dirty Dozen or similar schemes can lead to big headaches."

The "Dirty Dozen" list follows:

  1. Zero Wages
  2. Form 843 Tax Abatement
  3. Phishing 
  4. Zero Return 
  5. Trust Misuse 
  6. Frivolous Arguments 
  7. Return Preparer Fraud 
  8. Credit Counseling Agencies 
  9. Abuse of Charitable Organizations and Deductions 
  10. Offshore Transactions 
  11. Employment Tax Evasion
  12. "No Gain" Deduction
Additional information can be accessed here.   

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