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Archive for April, 2014

Phishing

April 18th, 2014

email

Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.

For more information check out the Internal Revenue Service Issue 2014-16.
Visit our website at www.Hoorfarlaw.com.

Misuse of Trusts

April 17th, 2014

taxes accountant

Trusts also commonly show up in abusive tax structures. They are highlighted here because unscrupulous promoters continue to urge taxpayers to transfer large amounts of assets into trusts. These assets include not only cash and investments, but also successful on-going businesses. There are legitimate uses of trusts in tax and estate planning, but the IRS commonly sees highly questionable transactions. Questionable trusts rarely deliver the tax benefits promised and are used primarily as a means of avoiding income tax liability and hiding assets from creditors, including the IRS.

Courtesy of the IRS Issue Number: 2014-16
Visit our website at www.Hoorfarlaw.com.

Impersonation of Charitable Organizations

April 15th, 2014

charity 3

Following major disasters, it’s common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Scam artists can use a variety of tactics. Some scammers operating bogus charities may contact people by telephone or email to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds.

Courtesy of the Internal Revenue Service Issue Number: 2014-16
Visit our website at www.Hoorfarlaw.com.

Abusive Tax Structures

April 11th, 2014

tax scheme

Abusive tax schemes have evolved from simple structuring of abusive domestic and foreign trust arrangements into sophisticated strategies that take advantage of the financial secrecy laws of some foreign jurisdictions and the availability of credit/debit cards issued from offshore financial institutions.
IRS Criminal Investigation (CI) has developed a nationally coordinated program to combat these abusive tax schemes.

Courtesy of the IRS Issue Number: 2014-16
Visit our website at www.Hoorfarlaw.com.

Hiding Income Offshore

April 8th, 2014

offshore

Over the years, numerous individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities and then using debit cards, credit cards or wire transfers to access the funds. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.

The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as the banks and bankers suspected of helping clients hide their assets overseas. The IRS works closely with the Department of Justice (DOJ) to prosecute tax evasion cases.

Courtesy of the IRS Issue Number: 2014-16

False Promises of “Free Money” from Inflated Refunds

April 4th, 2014

money 2

Scam artists routinely pose as tax preparers during tax time, luring victims in by promising large federal tax refunds or refunds that people never
dreamed they were due in the first place.

Scammers build false hope by duping people into making claims for fictitious rebates, benefits or tax credits. They charge good money for very bad advice. Or worse, they file a false return in a person’s name and that person never knows that a refund was paid.

Courtesy of the IRS Issue Number: 2014-16
Check out our website at www.Hoorfarlaw.com.

False Income, Expenses or Exemptions

April 3rd, 2014

income 2

Another scam involves inflating or including income on a tax return that was never earned, either as wages or as self-employment income in order to maximize refundable credits. Claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits such as Earned Income Tax Credit could have serious repercussions. This could result in repaying the erroneous refunds including interest and penalties, and in some cases, even prosecution.

Courtesy of the IRS Issue Number: 2014-16
Visit our website at www.Hoorfarlaw.com.