06/02/2022

IRS: Watch Out for These 'Dirty Dozen' Tax Schemes

Avoid these common fraud schemes

The IRS cautions taxpayers to avoid common fraudulent schemes in its annual “Dirty Dozen” list of “potentially abusive” tax arrangements to be aware of.

The agency announced the first four entrants to the list Wednesday. They include claiming a deduction on captive insurance formed in agreement with a Puerto Rican or foreign corporation and use of a Charitable Remainder Annuity Trust to eliminate taxable gain.

“Taxpayers should stop and think twice before including these questionable arrangements on their tax returns,” IRS Commissioner Chuck Rettig said in a statement. “Taxpayers are legally responsible for what’s on their return, not a promoter making promises and charging high fees. “

Please select this link to read the complete article from Bloomberg Tax.