IRS Announces Dirty Dozen Tax Scams for 2011

Don't try this at home: The IRS has announced its annual list of tax scams to avoid. The list, referred to by the IRS as the "dirty dozen" tax scams, was recently published for 2011.

Not surprisingly, in the wake of convictions in the UBS scandal, hiding offshore income topped the list of schemes to avoid. U.S. taxpayers must report their worldwide income and disclose certain offshore accounts. However, the IRS reports that taxpayers continue to avoid reporting and disclosure requirements by hiding income in offshore banks, brokerage accounts or, in some cases, fake companies. To encourage taxpayers to come forward, the IRS recently announced a new amnesty program to identify taxpayers with offshore accounts. The new offshore voluntary disclosure initiative (sometimes referred to as OVDI) will be available through Aug. 31, 2011.