From the U.S. Government Accountability Office, www.gao.gov

Transcript for: Abusive Tax Schemes

Description:
Our new report on Abusive Tax Schemes found that IRS is investigating
over 40 types of abusive tax schemes. IRS publishes information about
these tax schemes annually as a part of its Dirty Dozen list. Many of
these schemes peak during filing season as people prepare their returns
or hire someone to help with their taxes. However, we recommended that
IRS amend the Dirty Dozen list to include ways taxpayer can refer
information to IRS on preparers or other promoters involved in abusive
tax schemes.

Related GAO Works: GAO-23-105843. Abusive Tax Schemes: Additional Steps
Could Further IRS Efforts to Detect and Deter Promoters

Released: January 2023

Each year in our nation there is a gap between taxes owed and paid.

Abusive tax schemes are part of the problem.

These schemes can involve complex, multi-layer transactions that attempt
to hide taxable income or assets.

One of IRS's tools to combat such schemes—and the people that promote
them—is its Dirty Dozen list.

This annual publication lists the worst of the worst tax scams occurring
that year and provides valuable information to the public on how to spot
such scams.

It does not, however, include instructions for how the public can report
other potentially abusive tax schemes and the promoters that market
them.

We recommend the IRS amend the Dirty Dozen publication to include
reporting instructions.

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For more info, check out our report GAO-23-105843 at: GAO.gov