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IRS Alert: "Tax Payers Need to be on the Look out for Fraud"Posted by Roth-IRA-401k on: 2006-01-20 09:46:10 in category:
Retirement Planning News [ Print | Permalink / 0 Comment(s) ] IRS Alert: "Tax Payers Need to be on the Look out for Fraud" Howard Schwartz Tax-Definition.org ( http://www.tax-definition.or g ) is reporting on the second part of the tax scam alert from the Internal Revenue Service (IRS): Manipulation of Tax Codes and Laws in Tax Scams. With the IRS bringing out its annual listings for the numerous tax scams that are taking place, the debate on the misuse of tax laws has become hotter. The "Dirty Dozen" looks at different kinds of tax scams that have taken place in a year, to keep the people of United States aware of the fraud agencies and their owners who move around in the guise of tax professionals. The modus operandi of the so-called tax agencies and tax counselors is to manipulate the established rules and laws in order to get tax reduction. They catch hold of people who are most prone to falling for their false claims. Following the tax-deduction techniques given by them can land you in prison. The IRS keeps a strict tab on the numerous agencies and takes legal action against the fraudulent ones. The different clauses and doctrines that are twisted and used for getting tax reduction are: Evasion of employment tax: There are times when the tax agencies instruct the tax filers not to withhold the employment taxes from their wages. This is a wrong interpretation of the Section 861. Following anything like this can lead to criminal convictions and injunctions. Penalties and extra taxes can be charged from the people found guilty by the IRS. Corporation sole: There are many people, who apply for incorporation by claiming to be a part of some religious organization, or other phony institution in the hope that they may be exempted from federal income tax. The corporation sole statute gives the benefit of tax exemption to the to religious leaders, thereby separating them from the ownership of church and other assets, legally. The tax agencies ask people to use this statute to escape taxes, other debts, and child support. Increasing offshore transactions: Most of the people are advised to hide their income in offshore banks and accounts by the tax agencies. Such people tend to use offshore credit cards, life insurance, leasing schemes, wire transfers, and foreign trusts to evade paying huge taxes. The IRS and other U.S. agencies are on a look out for such people who approve of and promote such illegal transactions. Cases of Identity thefts: The IRS has received information about some identity thefts where impostors have stolen valuable information from people guising themselves as officers from the IRS. The stolen data has then been used for credit card and loan application. Some people have also received fictitious correspondence from different agencies posing as the IRS. People tend to disclose very important information to them like their social security and checking account numbers, and many other things. Deductions for charitable institutions: Different charitable institutions and non-profit organizations have the benefit of tax deductions. The tax agencies advise their customers to transfer all their assets and other properties to any such institution, on paper. The person still maintains actual control or hold of that property. This helps the individual to get tax exemption and other deductions. IRS discourages such practices and takes legal action against the guilty. The best thing to do is to avoid getting duped by fraud tax agencies, and contacting the IRS directly for any sort of information, or clarification. Learn more about electronic filing (e-filing) : http://www.tax-definition.org/Define-Electronic-filing.html Tax Forms for E-filers: http://www.tax-def inition.org/tax-forms About the author: Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard's business plans have secured several million dollars in funding. For more information: http://www.business-business.biz http://www.investment-investment.us http://www.retirement-retirement.com Recommended Websites Your custom Retirement Planning. http://www.retirement-plan.us For planning an IRA Rollover this is the website to review. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Money Managers selected to fit your needs. http://www.money-managers.us Manager with strong national performance rankings. http://www.durig http://www.roth-ira.us |
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