subject: Tax Scam Alert: Fraudulent Practices [print this page] Tax Network USA fears for innocent taxpayers who will fall victim to scam artists this year. The Internal Revenue Service declared that the most widespread scams are identity theft, concealing offshore income, and overestimating expenses. With the tax deadline fast approaching on April 17th, the IRS has announced its "dirty dozen" list of tax frauds. Scams like the ones listed above become far more common as the dreaded Tax Day draws near.
The federal agency devises the list each year in an effort to shield taxpayers from unethical tax "experts" whose true intentions are to rip off their clients.
The IRS intends to let no one stand in the way of them getting a hold of every cent owed to the government
The IRS commissioner hopes for people to review the dirty dozen list in order to avoid being lured into the mistakes seen year and year. These scam artists are known to correspond with unsuspecting taxpayers via email and other electronically supported communication. They make empty promises of free money and all sorts of wild but enticing refunds.
The most commonly occurring scam is identity theft.
The crook will pose as the taxpayer in tax return files and claim bogus refunds. $1.4 billion was saved from entering the wrong hands in 2011.
Cracking down further, the IRS proclaimed that 105 people in twenty-three states were targeted for identity theft.
Similar to identity theft is phishing, in which the criminals will pose as an official agency in an email to gather personal information like credit cards numbers and bank accounts and use said information to set up false returns.
Many Americans also attempt to conceal their money in an offshore bank account in an attempt to not pay those taxes. However, it is against the law to not declare the funds and pay the taxes on that money.
The IRS suggests certain plans for taxpayers who have offshore funds. In the past few years, thirty thousand Americans have divulged their overseas accounts by their own volition, allowing the government to collect 3.4 billion dollars, which resolves all but five percent of the occurrences.
The rest of the dirty dozen includes
The remainder of the dirty dozen tax scams consists of: deception by return preparers; false or inflated income and expenses; mistreatment of benevolent organizations and charitable deductions; and phony claims for refunds from Form 1099, which accounts for income that do not include wages, salaries and tips.
Unforunately, deception is a large part of the tax matter, and Tax Network USA is one of the few companies that puts a reputable face on the industry.
