The IRS wants taxpayers to be aware of tax scams. These scams are illegal and can lead to problems for taxpayers including significant penalties, interest and possible criminal prosecution. Beware of these common schemes:
Return-preparer fraud. Dishonest tax-return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of the clients' refunds and charging inflated fees for return-preparation services. Honest paid preparers sign all tax returns and enter their IRS Preparer Tax Identification Number (PTIN).
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