Individuals and groups may use deceptive tactics called abusive tax schemes to avoid paying their fair share of taxes. These schemes ultimately harm everyone by undermining the integrity of the tax system, often resulting in civil or criminal penalties for those involved. 

These schemes come in many forms, from well-known examples like Ponzi schemes and tax havens to lesser-known ones like phantom trusts, abusive tax shelters, and misused retirement plans. Be wary of promotions for schemes involving cryptocurrency, Maltese foreign IRAs, and foreign captive insurance accounts, for example. 

Tax whistleblowers who report these schemes may be eligible for rewards from the IRS.