Don’t fall victim to tax scams. These schemes take several shapes,
ranging from promises of large tax refunds to illegal ways of
“untaxing” yourself.
The IRS suggests that you remember three important guidelines:
• You are responsible and liable for the content of your tax return.
• Anyone who promises you a bigger refund without knowing your tax situation could be misleading you, and
• Never sign a tax return without looking it over to make sure it is accurate.
Beware of these common schemes:
Return Preparer Fraud:
Dishonest tax return preparers can cause many headaches for
taxpayers who fall victim to their ploys. Such preparers derive
financial gain by skimming a portion of their clients’ refunds and
charging inflated fees for return preparation services. They attract
new clients by promising large refunds. Choose carefully when hiring a
tax preparer. As the saying goes, if it sounds too good to be true, it
probably is. No matter who prepares your tax return you are ultimately
responsible for its accuracy and for any tax bill that may arise due to
a questionable claim.
Identity Theft:
It pays to be choosy when it comes to disclosing personal information.
Identity thieves have used stolen personal data to access financial
accounts, run up charges on credit cards and apply for new loans. The
IRS is aware of several identity theft scams involving taxes or
scammers posing as the IRS itself. Be aware that identity thieves are
already pushing scams involving the stimulus payments. At least one
telephone scam is making the rounds using the proposed rebates as bait.
IRS news release IR-2008-11,
“IRS Warns of New E-Mail and Telephone Scams Using the IRS Name;
Advance Payment Scams Starting,” has more details. The IRS does not use
e-mail to contact taxpayers about issues related to their accounts. If
you have any doubt whether a contact from the IRS is authentic call
800-829-1040 to confirm it.
Frivolous Arguments:
Promoters have been known to make outlandish claims that the Sixteenth
Amendment concerning congressional power to establish and collect
income taxes was never ratified; that wages are not income; that filing
a return and paying taxes are merely voluntary; and that being required
to file Form 1040 violates the Fifth Amendment right against
self-incrimination or the Fourth Amendment right to privacy. Don’t
believe these or other similar claims. Such arguments are false and
have been thrown out of court. Taxpayers have the right to contest
their tax liabilities in court, but no one has the right to disobey the
law.
For more information about these and other tax scams visit the IRS Web site at IRS.gov.
Remember that for the genuine IRS Web site be sure to use
.gov. Don't be confused by internet sites that end in .com, .net,
.org or other designations instead of .gov. The address of the official
IRS governmental Web site is www.irs.gov.