International Fraud Awareness Week: Fraud, Scams and Schemes

This week is International Fraud Awareness Week, the Internal Revenue Service is reminding taxpayers how to report tax-related fraud in their community to protect personal and financial information from scam artists and tax schemes.

During International Fraud Awareness Week, November 17-23, the IRS Office of Fraud Enforcement and IRS Criminal Investigation aims to raise awareness of fraud, scams, and schemes affecting taxpayers across the country.

The IRS also encourages people, businesses, and tax professionals to take time now to learn to recognize red flags and to ensure defenses are in place to stop scammers and those who promote unscrupulous tax schemes.

The Security Summit, a public-private partnership between the IRS, state tax agencies and the nation’s tax industry, also works to protect taxpayers, businesses, and the tax system from identity thieves and warn people to watch out for common scams and schemes.

Tax fraud comes in many forms, including scams targeting individuals, tax-related schemes by bad actors, and fraud committed by taxpayers who knowingly file incomplete or inaccurate information with the IRS.

We, the public can assist the IRS in identifying and investigating possible fraud of individuals and businesses by filing Form 3949-A, Information Report Referral. Form 3949-A is a tax-related public use form submitted voluntarily by individuals to report alleged violations of tax law by individuals and businesses. All Form 3949-A submissions are confidential.

Some of the suspected tax law violations you can report are false exemptions and deductions, multiple tax filings, organized crime, political corruption, and kickbacks, unreported income, illegal drug income, gambling income, and failure to pay or withhold tax and file tax returns.

The IRS reviews all submissions and determines the appropriate action to take. This may include an audit or possible criminal prosecution.   

The information you report regarding fraudulent tax-related activity can sometimes lead to a possible monetary award. You would then need to submit Form 211, Application for Award of Original Information. It will be evaluated by the IRS Whistleblower office. 

Each year, the IRS compiles a Dirty Dozen list that brings public awareness to a variety of common scams that taxpayers may encounter. This year’s list included phishing scams, questionable Employee Retention Credits, Fuel Tax Credit claims, Offers in Compromise mills, and fake charities.

Anyone experiencing these scams, or taxpayers encountering promoters or tax preparers peddling these schemes, are encouraged to submit Form 14242, Report Suspected Abusive Tax Promotions or Preparers.

You should mail or fax a completed Form 14242 and any supporting materials to the IRS Lead Development Center.

Movie fans often research a movie after the credits roll, especially if it's based on real-life events to find out how accurate the movie is. And they will probably do the same after they see the Michael Jackson biopic, Michael, which is slated for release on October 3, 2025, per The Hollywood Reporter. But not all biopics are 100% accurate: liberties were taken, for instance, in the 2018 Freddie Mercury biopic,  Bohemian Rhapsody or in the 2010 film The Runaways, about Joan Jett's former band. This is despite the fact that some members of both bands were involved in the making of each film.

When making movies based on real-life events, filmmakers generally aim for accuracy. They usually have some freedom to enhance stories with creative liberties. However, there are laws that protect celebrities and other public figures should their lives be depicted unfavorably. According to Stewarts, a UK law firm, they could file a defamation claim, misuse of private information claim, or intellectual property rights claim.  

For audiences, the line between fact and fiction gets blurred when watching movies based on real-life events. As we await the release of Michael, let’s take a look at other “based on a true story” movies, how they depicted facts and what they chose to fictionalize.   

The Social Network is based on Facebook founder Mark Zuckerberg (Jesse Eisenberg) and other people who were instrumental in his building the massive social networking site, especially Eduardo Saverin (Andrew Garfield), his co-founder. The film was a critical and commercial success and is often included in the best movies of the 21st century. However, since Zuckerberg was not involved in the movie, its accuracy is still debated.   What’s fact: All characters in the film are based on real people, except for Erica Albright, who isn’t a real person. The only difference is how involved they were in creating Facebook.   What’s fiction: Zuckerberg was dumped at the beginning of the movie which “spurred” him to make a website to “get girls.” However, in an interview with The Guardian, Zuckerberg said, “They [the film's creators] just can't wrap their head around the idea that someone might build something because they like building things.” He did say that the film got something right, “every single shirt and fleece they had in that movie is actually a shirt or fleece that I own.”    Per Vulture, Cameron and Tyler Winklevoss’ presence in the movies was also exaggerated and the twins weren’t as involved IRL.  

A biographical movie about a con man being questioned for its accuracy is understandable. Catch Me if You Can is based on Frank Abagnale Jr.’s (played by Leonardo DiCaprio) successful heists worth millions of dollars before his 19th birthday. He pulled it off by impersonating a pilot, doctor and prosecutor. The film also stars Tom Hanks as FBI Agent Carl Hanratty, the agent who ultimately captured Frank Abagnale Jr. He also convinced the Bureau to hire Frank and help with the FBI Financial Crimes Unit.   What’s fact: Finding what’s a fact in this movie is hard. His parents separated, and he impersonated a pilot and forged checks totaling $1,500 per Collider.   What’s fiction: This article from the New York Post is... overwhelming. The gist is everything we’ve seen in the movie is “inaccurate, misleading, exaggerated or totally false.”  A podcast host, Javier Leiva, who attended a 2022 speech Abagnale Jr. gave in Las Vegas summed it up, “Everyone has a right to a second chance. Forgiveness is a virtue. But basing your entire career on a lie and continuing to profit from it isn’t redemption — it’s just a different version of the same con.”  

Alongside his son Jaden Smith, Will Smith starred in the 2006 drama, biographical film, The Pursuit of Happyness. It follows the story of Chris Gardner, a struggling salesman who ends up homeless for a year. He was able to turn his and his son’s life around when he became a successful stockbroker. The movie received positive reviews from critics, especially Will Smith’s performance, which earned him Oscar and Golden Globe nominations for Best Actor.   What’s fact: One of the memorable scenes from the movie was seeing the real father and son Smith sleeping in a train station bathroom. This is in fact true and in an interview with Oprah Winfrey (via Watch Mojo), Smith shared that he saw the bathroom where Gardner and his son slept making it more emotional for him to film the scene.    What’s fiction: Per Screen Rant, Gardner didn’t struggle and ended up being homeless because he spent all of their life savings on portable bone density scanners. The scene where he landed an interview after finishing a Rubik’s cube is also made up.   

The Blind Side is a 2009 film starring Sandra Bullock and Tim McGraw as Leigh Anne and Sean Tuohy which went viral again last year because of a lawsuit. The movie showed us a heartwarming story of the Tuohy family adopting 17-year-old Michael Oher (Quinton Aaron) and guiding and raising him to become a professional football player. However, Oher revealed that the Tuohy family made millions off his name and tricked him into signing a conservatorship which he thought was adoption papers, per Entertainment Tonight.   What’s fact: Oher did study and play football at Leigh Anne and Sean’s alma mater; the University of Mississippi and he was drafted by the Baltimore Ravens in 2009.   What’s fiction: Per People, Oher mentioned two inaccuracies in the film, his education and football skills. “I felt like it portrayed me as dumb instead of as a kid who had never had consistent academic instruction and ended up thriving once he got it.” He also mentioned that not knowing about football is his “main hang-up with the film” since he’s been studying the game since he was a kid.  

Based on the 2008 attack at the Taj Mahal Palace Hotel in India, Hotel Mumbai featured Dev Patel as Arjun, a waiter who was on duty during a terrorist attack by Lashkar-e-Taiba, a Pakistani-based terrorist group. Armie Hammer and Nazanin Boniadi play a married couple. Boniadi portrays British Iranian heiress Zahra Kashani and Hammer as her American husband, David. Jason Isaacs also stars as Vasili, a former Spetznaz operative, who is among the hotel guests.   What’s fact: The hotel guests were indeed hostages in the hotel for days, per Time Magazine. Head chef Hemant Oberoi is a real person who was responsible for keeping hundreds of guests safe. The scene where the chef talked to his staff and gave them the option to leave or stay and help protect the guests is also true, as he shared with The New York Post.   What’s fiction: Although the main characters Arjun, Zahra, David and Vasili are fictional, they’re loosely based on people who were present during the attack.