|To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of educational materials. Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. Education is the best way to avoid the pitfalls of these “too good to be true” tax scams.
Common Scheme Types
Reporting Tax Scams
To report information on abusive tax shelters, schemes or unscrupulous tax preparers, the IRS offers several options.