The IRS capped its annual Dirty Dozen list with a warning to taxpayers about promoters “selling bogus tax strategies and fraudulent offshore schemes designed to reduce or avoid taxes altogether.” This last warning in the 2024 Dirty Dozen addresses micro-captive insurance transactions and syndicated conservation easements, as well as schemes involving “international elements” and digital assets. Read more about the specifics of this warning.
Unsurprisingly, the IRS Dirty Dozen included another warning for businesses and others to steer clear of unscrupulous promoters of questionable claims for the Employee Retention Tax Credit (ERTC). CBIZ has issued previous communications about the aggressive marketing of ERTC claims. The program currently remains open to taxpayers wishing to file claims for 2021 by April 15, 2025. However, if proposed legislation which includes proposing an earlier deadline is enacted, it will retroactively eliminate cflaims filed after Jan. 31, 2024.
The 2024 Dirty Dozen list is full of taxpayer warnings, most of which alert taxpayers to multiple types of scams attempting to steal taxpayers’ money or falsely lowering taxes, including suspicious online advice to charitable remainder annuity trusts and fake charities exploiting taxpayer generosity. The full list includes:
1. Bogus tax avoidance strategies
2. Fraudulent offshore schemes
3. High-income filers vulnerable to illegal tax schemes
4. Spearphishing attacks: surge in "new client" scams
5. Tax advice on social media
6. "Ghost" tax preparers
7. Fake charities exploiting taxpayer generosity
8. Compromise "mills" that falsely claim their services are necessary to resolve IRS debt
9. False Fuel Credit Claims
10. "Helpful" scammers offering to set up an online account
11. Aggressive ERTC promoters
12. Phishing and smishing scams
If you have questions relating to the 2024 IRS Dirty Dozen, we invite you to connect with our team today.
Copyright © 2024, CBIZ, Inc. All rights reserved. Contents of this publication may not be reproduced without the express written consent of CBIZ. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).