Scams

Tax frauds are constantly changing the methods they use to dupe taxpayers, but there are ways taxpayers can use to recognize a tax scam before it affects them. Some of the most used ways to conduct tax fraud are using fake charitable organizations, phishing, fraud by tax preparers, and identity theft. If taxpayers keep their…

Many taxpayers fall victim to tax frauds for various reasons, including avoiding or evading taxes. Paying taxes may not be fun, but illegally minimizing one’s tax liabilities can attract severe punishment, including imprisonment, fines, and penalties and interest. Therefore, taxpayers must ensure they keep themselves protected from attractive tax schemes that promise large financial gains.The…

Tax scammers use temptation of money and lies in order to obtain financial or personal information from unsuspecting taxpayers. Taxpayers can protect themselves from tax scams by researching the common methods scammers use and obtaining accurate information on the IRS’ programs and procedures.From fraudulent tax preparers to fake charitable trusts, taxpayers can encounter tax scammers…

Avoiding paying taxes by reducing the amount can be achieved through various legal or illegal means. Illegal means can include shifting income and assets, under-reporting income, and using false deductions. Tax avoidance is unlawful and punishable under law. Tax scammers try to encourage taxpayers to use illegal methods to reduce their tax liability, many times…

Apple Inc. is unapologetic about its tax strategy in Ireland, which helps the company evade taxes in the U.S. legally. The company is accused of using loopholes in the tax code to minimize its tax liability. An investigations into the tax strategy of Apple led investigators to Ireland where the company has subsidiaries that pay…

The IRS periodically updates taxpayers on the various methods scammers use to dupe taxpayers into sharing their personal and financial information. Currently, the IRS shares tips to help taxpayers avoid scammers who are targeting charitable donations to the recent Boston Marathon tragedy.Scammers are posing as charities to collect donations from well-intentioned taxpayers. As many people…

Tax frauds know that after a big tragedy, people will donate money to help the victims. These scammers steal the money that is advertised to help victims of tragedies.Scammers pose as charities and contact people through phone, email, in-person or social networking sites asking them to donate money for a cause. To earn the trust…

With tax filing season over, most taxpayers believe the threat of tax fraud is over as well but the reality is that tax frauds use the tax downtime to make quick money. After tax season, frauds begin to target taxpayers who have yet to file, or filed for an extension and are due refunds.Late-filers are…

The IRS tried to make it mandatory for tax preparers to have a PTIN (Preparer Tax Identification Number), but a judge ruled that the IRS didn’t have the authority to do so. Tax Defense Network advises taxpayers to be careful when choosing a preparer to file their taxes.Taxpayers complain that some tax preparers advertise low…

Every year millions of taxpayers fall victim to tax scams. In cases of identity theft, taxpayers usually find out about fraudulent tax returns filed on their behalf only after the IRS rejects their tax return. The IRS is struggling to deal with millions of false tax returns every year. The IRS tries to inform the…