IRS Dirty Dozen - Annual List of Scams and Schemes

Overview

For over 20 years the Internal Revenue Service has made a spring announcement of its Dirty Dozen list of scams and schemes. As the IRS explains: "The list is not a legal document or a literal listing of agency enforcement priorities. It is designed to raise awareness among a variety of audiences that may not always be aware of developments involving tax administration."

The list serves as a warning that the relevant authorities are aware of nefarious activities and are taking action to put an end to them. Although the IRS does not represent and exclusive summary of the activities and transactions that the IRS is scrutinizing, it contains a number of the activities that tend to peak during the filing season that can have adverse effects on both taxpayers and tax practitioners. The list also serves as a reminder to taxpayers and tax professionals that they should always be on the lookout to avoid allowing themselves to be drawn in to participating in schemes that sound "too good to be true."

This course reviews the items on the 2022 Dirty Dozen list, explaining the nature of these schemes and their impact on taxpayers and tax professionals. You will see that the IRS is focused on fraud associated with certain highly promoted activities (CRATs, foreign treaties, captive insurance companies, and monetized installment sales), consumer-related fraud, and activities typically engaged in by high-net-worth individuals.

Learning Objectives

After successfully completing this course, you will be able to do the following with respect to the IRS Dirty Dozen list for 2022:

  • identify the main characteristics of each of the items on the list
  • identify the warning signs that should alert potential victims to these scams and schemes
  • identify measures the IRS is taking to reduce the impact of each item on the list and impose penalties on the perpetrators

Tax Years: 2022-2023

Designed For

CPAs, EAs, AFSPs, and Other Tax, Accounting, and Finance Professionals

Advanced Preparation

None

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