IRS Issues Tax Scam Warnings for this Season
Its common fact that everyone hates to pay taxes. But we all do for one reason or another. We either want to strengthen our government or build better school systems for future generations. Tax money enables us to enjoy a secure life. With all these benefits in the back of our mind, we also know that ever since taxes have existed, so have ways to evade them. Most taxpayers at least know one person who specializes in paying fewer taxes or no taxes at all. IRS warns anyone who is involved in these schemes or is thinking about them of the consequences of such actions. With the IRS criminal investigation division working closely with all the other divisions to catch such schemes, no one is safe from them. Anyone caught misleading IRS on their tax return or helping someone else file their tax return illegally faces heavy fines and penalties plus time in federal prisons.
Following are some scams every taxpayer should be aware of:
- Employer fails to withhold any employment taxes or federal income taxes from employees paycheck because he/she read somewhere on the Internet that they really dont have to. These are misinterpretations of the tax code and can result in serious prison time for the employer.
- People who tell everyone that they dont really pay their taxes because there is no law that requires you to pay taxes. They are wrong and they may cost you extra in fines and penalties if you fail to file a tax return. U.S. courts have ruled for years on this issue and their stance has still not changed, pay your taxes.
- Tax code contains exclusions or refunds for African Americans whose ancestors were slaves. This has no basis in the tax code.
- Pay the tax due on a prize before we sent out the prize to you. This is not true. You pay the taxes with your tax return.
- Send money for pamphlets or booklets that show you the hidden secrets of the tax code such as loopholes that you can use to not pay any taxes. Another lie that forces people to send out their checks to phony companies and waste money. IRS is investigating these businesses.
- Get all the social security tax that you have paid over the years refunded back to you. There is usually a fee to begin the process that is pocketed through this scam.
- No one can get you a large refund without looking at your tax situation. So be wary of individuals those promise this after just looking at you and not your W- 2.
- Dont let strangers at your doorstep collect taxes, they dont work for the IRS.