Beware the dirty dozen tax scams of 2013
False Form 1099 refund claims
This perennial tax scam is perfect for conspiracy theorists.
Scammers pushing this refund ploy contend that the federal government maintains secret accounts for all U.S. citizens. The con artist offers to help his victims get access to the accounts by issuing a fake version of a real tax form, usually Form 1099 Original Issue Discount, to the IRS. The taxpayer then makes a refund claim on his or her tax return based on that false 1099 information.
Even the world's biggest believers in a grassy knoll shooter or "The X-Files" fans should be suspicious of anyone suggesting this fake tax-filing strategy. Don't fall prey to people who encourage you to claim deductions or credits to which you are not entitled. Similarly, don't let anyone use your personal information to file false returns.
If you do participate in such a scheme, you could be liable for financial penalties or even face criminal prosecution.