IRS Caps Off its 2024 Dirty Dozen List with an "Everything Else" Approach

In grand finale style, the IRS released its last entry to its 2024 Dirty Dozen List with a catch-all listing of transactions and invitation to taxpayers to be a whistleblower.

The IRS wrapped up its 2024 Dirty Dozen list with a “warning to taxpayers regarding promoters selling bogus tax strategies and fraudulent offshore schemes designed to reduce or avoid taxes altogether.” A hodgepodge of transactions followed, including:

• Syndicated conservation easements – because the IRS hates positive land stewardship. 
• Micro-captive insurance transactions – because it’s been on the Dirty Dozen List since 2015 and the IRS has a hard time letting go.
• Schemes involving “international elements” – because, you know, the IRS believes everything offshore is evil.
• Schemes involving digital assets – because big brother Treasury Department feels threatened by something outside the control of governmental monetary policy.
• Misusing a tax treaty with a Malta retirement plan – because as a Brady-Bunch fan, the IRS now gets to say “Malta, Malta, Malta!!”

For a more detailed (and less cringy) discussion from the IRS about these transactions, click HERE.

With the 2024 list complete, the IRS is now seeking entries for its 2025 list. As part of its “awareness” efforts, the IRS is urging individuals to “report those who promote abusive tax practices and tax preparers who intentionally file incorrect returns.” While the IRS provides links to facilitate such reporting, there was no designated form to report IRS overreach.. I checked.

If you have any questions about this Blog post or any other Treasury, IRS or tax-related matter, feel free to contact me directly at (214) 749-2464 or adaddino@meadowscollier.com.