WASHINGTON — The Internal Revenue Service today unveiled its annual listing of notorious tax scams, the “Dirty Dozen,” reminding taxpayers to be wary of schemes that promise to eliminate taxes or otherwise sound too good to be true.

The “Dirty Dozen” for 2005 includes several new scams that either manipulate laws governing charitable groups, abuse credit counseling services or rely on refuted arguments to claim tax exemptions. The agency also sees the continuing spread of identity theft schemes preying on people through e-mail, the Internet or the phone, sometimes with con artists posing as representatives of the IRS.

“The Dirty Dozen is a reminder that tax scams can take many forms,” IRS Commissioner Mark W. Everson said. “Don’t be fooled by false promises peddled by scam artists. They’ll take your money and leave you with a hefty tax bill.”

Involvement with tax schemes can lead to imprisonment and fines. The IRS routinely pursues and shuts down promoters of these scams. But taxpayers should also remember that anyone pulled into these schemes can face repayment of taxes plus interest and penalties.

Persons who suspect tax fraud can call the IRS at 1-800-829-0433.

The Dirty Dozen
The IRS urges people to avoid these common schemes:

Other Scams Still Lingering

The IRS removed four scams from the Dirty Dozen this year: slavery reparations, improper home-based businesses, the Americans with Disabilities Act and EITC dependent sharing. The agency has noticed declines in activity in some of these schemes. But taxpayers should remain wary because the IRS has seen old scams resurface or evolve.

Moreover, the IRS reminds taxpayers to be vigilant about cons that may not be on the Dirty Dozen list. New tax scams or schemes routinely pop up, especially around tax time.