Baker’s Dozen: Watch out for other abusive schemes

The IRS also reminds taxpayers that beyond the Dirty Dozen, there are a wide array of other abusive schemes and bogus tax avoidance strategies that can mislead well-intentioned taxpayers. These can involve different types of trusts, offshore schemes and even individual retirement arrangements. More information on past schemes is available on the special Dirty Dozen section on IRS.gov. 

While the Dirty Dozen list is not a legal document or a formal listing of agency enforcement priorities, it is intended to alert taxpayers and the tax professional community about various scams and schemes. 

Report abusive tax schemes and tax return preparers 

In support of the Dirty Dozen awareness effort, the IRS also encourages people to report individuals who promote improper and abusive tax schemes as well as tax return preparers who deliberately prepare improper returns. 

To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242 – Report Suspected Abusive Tax Promotions or Preparers, or mail or fax a completed Form 14242 PDF and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations. 

Taxpayers and tax practitioners may also send the information to the IRS Whistleblower Office for a possible monetary award.