Placing Tax Scams Under The Magnifying Glass

1. Identity Theft. Be mindful of the potential for phishing. Identity theft is an ongoing topic of concern for all consumers. No bank or credit card company will ever request personal data to be sent via email.

2. Filing False or Misleading Forms. In these pressing economic times, people are tempted to use fraudulent or misleading information on their tax forms. Friends, family and acquaintances are using others personal data as their own. If anyone, even family, asks for your personal data, don't be afraid to ask questions.

3. Hiding Income Offshore. Offshore accounts aren't that unusual these days, but you must know the rules and regulations. The IRS has stated that they "aggressively pursue taxpayers involved in abusive offshore transactions."

4. Frivolous Arguments. If a scheme to avoid paying your taxes seems too good to be true, it probably is. Always do your research. When a memo regarding deductions and discounts comes across your desk from an unknown resource, call your CPA and research the claim.

5. Return Preparer Fraud. Be careful in choosing your tax preparer. Fraud can occur in skimming a portion of the clients refund or charging outlandish fees for services. If you suspect preparer fraud immediately contact the IRS.

Visit the IRS web site for a complete list.