Each year the IRS announces a list of the "Dirty Dozen Tax Scams" its agents encounter most frequently. Highlighted here are seven of the most common.

	Excessive business credits. This scam focuses on two commonly misused business credits: the fuel credit and the research credit. The fuel credit is usually only available for off-street vehicle use (typically for farming). While the research credit may seem straightforward, there are stringent qualifications and reporting requirements. Prior to using either of these credits, you should ask for a review of your situation.
	Fake charities. After major disasters, many charitable givers are scammed into making donations to fake charities. This makes donations to them nondeductible. To protect against this, prior to donating funds make sure the charity is both legitimate and deemed a qualified charity by the IRS. Here is a link to the IRS tool to confirm charitable organizations. IRS Exempt Organizations List Check
	Identity Theft. Identity theft tops the Dirty Dozen list every year. Thankfully, the IRS takes precautionary measures to curtail this out-of-control problem. In addition to limiting the number of direct deposits it will make to any single account, the IRS is working with states and tax preparation software vendors to put more controls in place. This includes some states requiring drivers license numbers on their tax forms, delays in early processing of tax refunds, internal tracking within software programs, and continual checking for heavy filing activity.
	Phone scams. Phone calls from thieves representing themselves as IRS agents continue to get more sophisticated. The caller ID may show as coming from the IRS and the scam may involve numerous phone calls instead of a single contact. These thieves often have some of your personal information and try to intimidate their victims with threats of jail time, deportation or license revocation. Remember, never give information over the phone to someone claiming to be from the IRS.
	Phishing. This recurring scam involves receiving fake emails and websites that look like the real deal. The IRS will not send you billing information or refund information via email. Do not click on any email link received from the IRS unless you requested it. Remember the IRS does not initiate contact through emails.

If you wish to know more, the IRS has posted information on these scams on their web site, www.irs.gov. Simply click on the "News and Events" tab.

If you are expecting to inherit property when friends or relatives pass away, know that their generosity can come with tax consequences. It's important to understand how the value of your inheritance is determined in order to avoid a potential tax surprise in the future.

The conflict over value

Generally speaking, executors would rather have the estimated value of an estate's total property fall below estate-tax thresholds. But as a beneficiary receiving an inheritance, it's in your interest to have a higher estimate of value. That way you may avoid higher capital gains tax if you sell the property.

A high estate valuation helps you as a beneficiary because you only pay tax on the increase in value from its "basis" when you inherited it. So, if your inherited property was valued at $200,000 and you later sell it for $300,000, you would pay taxes on $100,000. But if the same property was valued at $300,000 when you inherited it, you would potentially owe no tax.

A matter of value

In valuing a piece of property, an executor will compare it to similar properties that have recently sold. Ideally there is a qualified appraisal by an expert to determine the "fair market value".

If you disagree with the way an executor has valued property you are inheriting, it may be a good idea to have your own appraisal done. With your appraisal in hand, reach out to the executor and make your case for the higher valuation based on your appraisal. Keep in mind that you don't want an evaluation that is either too low or too high — you want a reasonable fair market value of the assets. If you don't talk to the executor and you end up using a different valuation in reporting to the IRS, you could be facing a big tax headache.

If you're able to talk to the executor and agree on a valuation, consider asking for a Form 8971 Schedule A. This form itemizes the valuation of property and is now often required by the IRS for estates worth more than $5.49 million. However it can also be used to provide you with documentation showing that you and an executor have reached an agreement on the value of a specific piece of inherited property.

Your credit score is important. It dictates how easy it is to obtain a loan for a car, house, or business acquistion. Your score is expressed as a number that ranges between 300 and 850 points. The closer you are to 850 points, the more likely you are to receive a loan and the less you'll pay in interest. So, how is your credit score calculated and how can you improve it?

Credit score ingredients¹

	Credit card debt usage, 30 percent. Lenders like to see that you aren't getting close to using your maximum credit card limit each month. For the best score, you should keep your monthly debt between 10 percent and 30 percent of your maximum limit. The lower the better. A great place to start is to understand your spending limits on your credit cards and keeping any balance on your cards below the 30 percent threshold.
	Credit age, 15 percent. You get a better credit score depending on how far back your credit goes. The age of your credit is the average of all your accounts, so if you open a lot of new accounts, this will shorten your credit age and start to lower your credit score.
	Account mix, 10 percent. Lenders like to see that you have a track record of paying a variety of different kinds of debts, such as credit cards, mortgages, car, and business or education loans.
	Credit inquiries, 10 percent. Each time you apply for a new credit card, a new loan, or ask for a substantial increase in your credit limits you generate a "hard inquiry" on your credit report. It's a sign that lenders are checking into your credit history to determine your risk. While that's not necessarily a bad thing, trying to open too many new accounts in a short period of time is seen as a red flag by lenders.

Key ideas to improve your credit

	Pay your bills on time. Ask your credit card providers or lenders to set all your due dates on the same day, and then set a reminder in your calendar. Consider using auto-pay for more important bills like credit cards and mortgage payments.
	Manage your credit card debt limits. Ask your credit issuers to increase your card line limit. You can also limit the amount of credit card debt you accumulate by paying your bill in full each month, stop using a card but not closing the account, or switching to cash as you approach your line limits.
	Build a credit history. The sooner you get started in establishing a credit history, the sooner you'll establish a track record of payments that give lenders confidence in your ability to repay debt.
	Create variety. Manage your debt, but understand that making student loan payments on time, paying off credit card debts and other loans can present you as a quality credit risk to prospective lenders.
	Manage your credit hits. Try to limit the number of new accounts you open over a short period of time. Each hard inquiry will only impact your credit score by a few points, but each one stays on your credit report for two years.
	Know your number. Last, but not least, know your credit score. Sometimes a low score can be the result of an error in your credit history or a recent identity theft problem. You have the right to receive your credit report free once per year from each of the major credit reporting agencies. Here is the link: AnnualCreditReport.com

¹ Sources: Creditcards.com; Transunion; FICO

It is all too easy to make a mistake that can cost you plenty if you do not actively manage yourretirement assets. Here are some common retirement account mistakes that can easily be avoided.