The Internal Revenue Service (IRS) has released its “Dirty Dozen List” for 2023, outlining new warnings and major risks for the coming year. With key takeaways from this list, legal professionals and corporate entities must prepare and navigate the stated challenges with absolute precision. The full IRS release detailed not only previous-year concerns but also introduced a set of new warnings for this year.
One of the prominent warnings for 2023 focuses on the aggressive promotion of claiming the Employee Retention Credit. A reminder to businesses and legal professionals: if an offer seems unrealistic or too good to be true, it’s highly probable that it isn’t genuine. The IRS has cautioned about the risk of scammers exploiting these circumstances.
Another major concern in this year’s list is phishing emails and other scams purporting to be the IRS. This is a stern reminder to everyone, especially corporate entities, to be vigilant about such deceptive tactics. As they say, discretion is the better part of valor. In this context, it entails regularly updating and fortifying cybersecurity measures to prevent any sort of security breach.
The Dirty Dozen List is an annually updated compilation of common scams and risks prepared by the IRS. The 2023 list clearly indicates that scammers continue to exploit emergency benefits and other key aspects instituted due to the pandemic, a keen indicator of the evolving complexity of these fraudulent schemes.
As legal professionals, it is important to keep abreast of these warnings and adapt to the strategies accordingly. Intelligent navigation through these alerts will not only protect businesses but also lay the groundwork for robust compliance mechanisms for the future.