12 tax scams that could cost you

[12 tax scams]

12 tax scams that could cost you

As April 15 nears, watch out for con artists who try to convince you they can cut or eliminate income taxes entirely.

Taxpayers are always looking for ways to cut tax bills. Unfortunately, scam operators are always looking for filers who are eager to find tax breaks.

Con artists work year-round, but as April 15 nears, tax-specific scams hit high gear. The Internal Revenue Service warns that people could fall prey to unscrupulous preparers, identity thieves or less-than-helpful credit counselors. Then there are the perennial rip-offs, such as dubious offshore transactions and abusive trust schemes. And some folks can't even trust their bosses, with work-related scams still popular.

It's bad enough that scam victims, believing promises of lower tax bills, end up losing cash. But even worse, they subsequently find themselves in deeper debt to the IRS. The reason: Even if you are duped, federal law requires you pay your rightful taxes plus any penalty charges and back interest that accrued because of your use of questionable tax-relief techniques.

Most of the schemes are patently false. Others take real tax breaks, or portions of legal write-offs, and illegally apply them.

Here are 12 common and potentially costly ways you could lose money to more than just the IRS if you're not careful.

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