The ‘Dirty Dozen’ tax scams the IRS wants you to avoid

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Each year the Internal Revenue Service ranks the most common scams people may face as they prepare their taxes. The IRS says these “Dirty Dozen” range from identity theft to “free money” and peak during filing season.

No. 12: Misuse of trusts The IRS described the potential pitfalls of some trusts this way: The problematic ones “rarely deliver the tax benefits promised and are used primarily as a means of avoiding income tax liability and hiding assets from creditors, including the IRS.” Atta Kenare/AFP/Getty Images

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