As we kick off the 2024 tax season, staying alert to the increasing trend of fraudulent 2023 tax return filings is crucial. To assist in this, our firm has developed a targeted quiz to aid in recognizing and combating these scams.
This quiz is vital in ensuring you’re equipped to tackle the challenges of this tax season with confidence.
Question 1:
What is the first tax scam on the Dirty Dozen list, targeting businesses with promises of large refunds based on the Employee Retention Credit (ERC)?
a) Spearphishing
b) Fake Charities
c) Employee Retention Credit (ERC) Claims
d) Shady Tax Preparers
Question 2:
How does the IRS typically communicate with taxpayers?
a) Through phone calls
b) Via unsolicited emails and texts
c) By mail and secure online channels
d) Through social media
Question 3:
What caution is advised regarding third-party services offering to set up an IRS online account for a fee?
a) Legitimate tax professionals offer this service for free
b) The IRS recommends using third-party services for account setup
c) Always trust third-party services for secure account creation
d) The IRS charges a fee for online account setup
Question 4:
Which tax scam involves scammers exploiting confusion around fuel tax credits and charging fees for nonexistent services?
a) Abusive Tax Avoidance Schemes
b) Third-party Services to Settle IRS Debts
c) Third-party promoters of False Fuel Tax Credit Claims
d) Schemes Aimed at High-Income Filers
Question 5:
What should taxpayers do before donating to charities following natural disasters, as the Dirty Dozen list mentions?
a) Donate immediately to support relief efforts
b) Research and check the IRS charity search tool
c) Ignore charities altogether
d) Donate to charities with generic names
Question 6:
According to the information, what is a red flag for shady tax preparers?
a) Charging based on a refund percentage
b) Refusing to sign returns
c) Requesting blank forms or cash payments
d) All of the above
Question 7:
What advice is given regarding tax solutions or loopholes circulating on social media?
a) Trust them as they provide quick solutions
b) Stick to official IRS resources and qualified tax professionals
c) Ignore them, as they are all scams
d) Share them with friends and family
Question 8:
According to the Dirty Dozen list, who should be particularly alert against spearphishing attempts?
a) Taxpayers
b) Charities
c) Tax professionals
d) Social media users
Question 9:
What caution is given regarding third-party services offering to settle IRS debts through the Offer in Compromise (OIC) process?
a) Always trust them for quick OIC approvals
b) They have no limitations, so they are safe to use
c) Explore all options and consider qualified help if needed.
d) The IRS recommends them
Question 10:
What is a warning about schemes aimed at high-income filers, especially those involving offshore accounts or digital assets?
a) They are legitimate and offer realistic benefits
b) Ignoring tax compliance risks can lead to severe penalties
c) The IRS actively supports these schemes
d) They have no potential legal risks
Question 11:
What is the overarching caution against abusive tax avoidance schemes?
a) They are legal and endorsed by the IRS
b) They are a quick way to reduce taxes
c) The potential penalties and legal risks outweigh any perceived benefit
d) They are recommended for high-income individuals
Question 12:
What makes schemes with international elements, such as hiding assets in offshore accounts, serious offenses?
a) They are legal and encouraged by the IRS
b) The IRS lacks international cooperation
c) The IRS has extensive reach and cooperation with international partners
d) They offer benefits without legal consequences
Congratulations on completing our insightful tax scam awareness quiz! Your dedication to staying informed is a commendable step towards securing your financial and personal well-being this tax season.
Don’t let uncertainties linger. Schedule your tax assessment today, and let our professionals guide you toward a tax season marked by confidence and peace of mind.
P.S. Don’t forget to check your answers to the quiz.
ANSWERS
Question 1:
c) Employee Retention Credit (ERC) Claims.
Question 2:
c) By mail and secure online channels.
Question 3:
a) Legitimate tax professionals offer this service for free.
Question 4:
c) Third-party promoters of False Fuel Tax Credit Claim.
Question 5:
b) Research and check the IRS charity search tool.
Question 6:
d) All of the above.
Question 7:
b) Stick to official IRS resources and qualified tax professionals.
Question 8:
c) Tax professionals.
Question 9:
c) Explore all options and consider qualified help if needed.
Question 10:
b) Ignoring tax compliance risks can lead to severe penalties.
Question 11:
c) The potential penalties and legal risks outweigh any perceived benefit.
Question 12:
c) The IRS has extensive reach and cooperation with international partners.