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3 Tax Scams to Watch Out For in 2017

Source: fool.com/retirement/2016/12/27/3-tax-scams-to-watch-out-for-in-2017.aspx - Jan 4, 2017

Tax season is right around the corner, and unfortunately, a surge in tax scams is likely to come with it. Tax scams can take many different forms, but most tax scams fall under three major categories: fraudulent returns, phone scams, and phishing. Most tax scams, though, are preventable, so here's what you need to know to avoid becoming a victim.

The number of fraudulent tax returns has soared in recent years, with thieves using the Social Security numbers of unsuspecting Americans to file bogus tax returns with the goal of pocketing tax refunds they're not entitled to.

Fortunately, the IRS has stepped up efforts to combat this, and it seems to be working so far. In fact, its recently improved early detection system enabled the IRS to identify 35,000 fraudulent returns in the first couple months of 2016's tax season and prevented the issuance of $193.8 million in fraudulent refunds.

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Category: General Business