Thanks to the
1.Identity theft. It's when someone else uses your personal information -- name,
2.Telephone scams. Now on the increase, this is the circumstance where a caller pretends to be from the
3. Phishing. Victims are lured with unsolicited e-mail or a false website. Victims are asked for personal information. Don't give it. See "Identity theft" above.
4. False promise of free money. Scam artists posing as tax preparers solicit your business with the promise of huge refunds. "They charge good money for very bad advice," the
5.Return preparer fraud. It's best to confirm that your preparer has an
6. Hiding income offshore. It still doesn't work. To avoid taxes, people will use vehicles including foreign trusts, employee-leasing schemes, private annuities or insurance plans. They hide their money in offshore banks, brokerage accounts or "nominee entities." Since 2009, the
7.Impersonation of charitable organizations. Following major disasters, scam artists arrive like locusts at a vegan picnic. To avoid problems, donate to recognized charities; check the bona fides of the supposed charity; don't send cash; don't give out personal information. Use common sense along with your common decency.
8.False income, expenses or exemptions. Unless you're a true farmer, you probably don't qualify for the fuel tax credit. Get real. Don't lie.
9.Frivolous arguments. Penalties await for those who make goofball claims. You know who you are. Claiming that
10.Falsely claiming zero wages or using false Form 1099. Pitfalls surround Form 4852 when used to illegally reduce taxable income to zero. If you go ahead and file Form 1099-OID (Original Issue Discount) in order to claim a false refund, the
11.Abusive tax structures.
12. Misuse of trusts. Unscrupulous promoters lure taxpayers to transfer large financial assets into trusts -- and yes, trusts can actually be the favored vehicle when making decisions concerning financial planning. Private annuity trusts and foreign trusts have their place, and that place could well be federal prison if used to avoid taxable obligations.
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