Government warns of "Dirty Dozen" tax scams.

• Position: Tax evasion

Would you know what to look for to avoid an abusive tax scheme? Are you aware of the tax scams that phoney preparers utilize on a daily basis? For example, if someone suggested that income tax is unconstitutional, would you believe it? Each year, the IRS reveals the latest scams that try to manipulate laws--known as the Dirty Dozen:

* Zero wages. The taxpayer attaches the incorrect Form 4852 (Substitute Form W-2) or a corrected 1099 that shows zero income or little income. It probably includes a statement indicating a rebuttal of information that was submitted previously to the IRS. Beware of anyone who encourages you to declare zero wages.

* Form 843 tax abatement. Filers use IRS forms to claim their tax bills have been inflated wrongly. By misinterpreting the law, a taxpayer will try to get a refund of previous years' taxes. Many using this scam have not filed tax returns previously.

* Phishing. This is an attempt at identity theft. The unsuspecting person receives an e-mail claiming to be from the IRS, but it actually is linked to a fake IRS website meant to solicit a taxpayer's personal information, such as Social Security numbers. The con artist then uses the information to file for a fraudulent refund.

* Zero return. Fraudulent promoters instruct taxpayers to enter all zeros on their Federal income tax filings. Naturally, these returns are not valid. If a preparer tells you to do this, report him or her immediately.

* Trust misuse. Unscrupulous tax scheme promoters urge taxpayers to use offshore trusts to hide assets. Taxpayers should be very cautious and seek the advice of a reliable professional.

* Frivolous arguments. Under this scam, various constitutional arguments claim that filing and paying taxes is voluntary. The fraudulent promoter will allege that the Sixteenth Amendment--concerning Congressional power to lay and collect income taxes--never was ratified, implying that the IRS lacks authority to collect taxes. This is absolutely untrue.

* Return preparer...