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  • Don’t Fall Prey to Tax Scams – IRS Tax Tips

    Monday 07th of November 2011 4:38:08 PM

    Annually, the IRS classify a list of common tax scams called the “dirty dozen.” The IRS attempts to educate taxpayers about the scams that can end up causing them great financial harm and future stress. The list will serve as their reminders for their taxpayers to be very careful in handling their own tax return. Be guided with an old saying – “If it seems too good to be true, it probably is.”

    “The Dirty Dozen represents the worst of the worst tax scams,” IRS Commissioner Doug Shulman said. “Don’t fall prey to these tax scams. They may look tempting, but these fraudulent deals end up hurting people who participate in them.” Plus, you will be the one responsible for paying all taxes due plus huge interest, and penalties that grow fast, so, be careful.

    Here are the classified Dirty Dozen Tax Scams for 2011: 

    1. Hiding Income Offshore

    2. Identity Theft and Phishing- Phishing is a common tactic that is used online to get taxpayers to reveal valuable personal information that can then be used fraudulently. Phishing usually involves bogus emails, ones that appear to be from the IRS and direct the taxpayer to divulge personal information. It can also involve sending the taxpayer to a bogus Web site that looks official. The IRS never sends taxpayers unsolicited emails about their personal tax matters.

    3. Return Preparer Fraud- Be careful of tax preparers that promise a big refund without knowing the facts of your situation.

    4. Filing False or Misleading Forms- The penalties for tax fraud are not only financial, but can be criminal.

    5. Frivolous Arguments- Some taxpayers make frivolous arguments that they are not required to pay federal income tax. They feel paying taxes are unconstitutional.

    6. Nontaxable Social Security Benefits with Exaggerated Withholding Credit- Tax filings containing this type of error can result in a $5,000 penalty.

    7. Abuse of Charitable Organizations and Deductions

    8. Abusive Retirement Plans

    9. Disguised Corporate Ownership

    10. Zero Wages

    11. Misuse of Trust

    12. Fuel Tax Credit Scams- A frivolous tax claim and face a penalty of up to $5,000.

    SOURCE – irs.gov.com

    For further assistance in today’s discussion, visit 911taxrelief.com.

     

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