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IRS Criminal Investigation Unit Offers Tips to Avoid Fraud in Filing Taxes

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The IRS Criminal Investigation sends letters to taxpayers warning them about tax-related fraud, which is committed through phishing attacks or unethical tax preparers.

Tips to avoid tax fraud

According to 8News Now, here are some tips to avoid fraud in filing taxes this season.

  • Make an informed decision when hiring a tax preparer. A tax preparer who is available all year should be sought after.
  • Stay away from tax preparers who promise you substantial refunds in exchange for your business. Taxpayers are responsible for paying their fair share of taxes.
  • A blank tax return should not be signed. It is ultimately the responsibility of the taxpayer to ensure that the information on their tax returns filed with the IRS is accurate.
  • Check to see that your refund has been processed properly. Not your tax preparer’s bank account, but yours, should be the recipient of your refund.
  • Don’t respond to IRS texts, emails, or social media posts. Your personal data may be compromised by malware.
  • Guard your personal and financial data. Never reply to unsolicited texts, emails, or social media postings claiming to be the IRS.

Digital currencies prone to fraud

According to Advisor Perspective, criminal investigators at the Internal Revenue Service believe that cryptocurrencies and nonfungible tokens are prone to fraud, including money laundering, market manipulation, and tax evasion — and they believe celebrities could become entangled in the agency’s investigation as a result.

As digital assets have become more widespread, they have been a rising source of concern for government agencies, with regulators dealing with how to police the tokens and conduct enforcement efforts to dissuade investors from engaging in illicit activity.

In the past, federal agencies have pursued cryptocurrency companies that used celebrities to advocate their products or engage in illegal transactions.

As per the report, earlier this year, boxer Floyd Mayweather and music producer DJ Khaled agreed to resolve allegations with the Securities and Exchange Commission of the United States that they failed to disclose that they had been compensated to promote a fraudulent scheme through social media campaigns.

The agency wants to work more closely with other federal agencies, notably the Justice Department, to stay ahead of criminals.

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