Tag Archives: Internal Revenue Service

Abusive Tax Structures

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 … Continue reading

Posted in General | Tagged , , , , , , | Leave a comment

Hiding Income 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 … Continue reading

Posted in General | Tagged , , , , , , , | Leave a comment

False Promises of “Free Money” from Inflated Refunds

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 … Continue reading

Posted in General | Tagged , , , , , , , | Leave a comment

False Income, Expenses or Exemptions

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 … Continue reading

Posted in General | Tagged , , , , , , | Leave a comment

Falsely Claiming Zero Wages or Using False Form 1099

Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income … Continue reading

Posted in General | Tagged , , , , , , , | Leave a comment

Return Preparer Fraud

About 60 percent of taxpayers will use tax professionals this year to prepare their tax returns. Most return preparers provide honest service to their clients. But, some unscrupulous preparers prey on unsuspecting taxpayers, and the result can be refund fraud … Continue reading

Posted in General | Tagged , , , , , , , , | Leave a comment

Pervasive Telephone Scams

The IRS has seen a recent increase in local phone scams across the country, with callers pretending to be from the IRS in hopes of stealing money or identities from victims. These phone scams include many variations, ranging from instances … Continue reading

Posted in General | Tagged , , , , , | Leave a comment

Seven Facts about Dependants and Exemptions

The IRS has seven facts on these rules to help you file your taxes. 1. Exemptions cut income. There are two types of exemptions: personal exemptions and exemptions for dependants. You can usually deduct $3,900 for each exemption you claim … Continue reading

Posted in General | Tagged , , , , , , , | Leave a comment

Identity Theft

Identity theft occurs when someone uses your personal information, such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes. In many cases, an identity their uses a legitimate taxpayer’s … Continue reading

Posted in General | Tagged , , , , , | Leave a comment

Important Reminders about Tip Income

-Tips are taxable. You must pay federal income tax on any tips you receive. The value of non-cash tips, such as tickets, passes or other items of value are also subject to income tax. -Include all tips on your return. … Continue reading

Posted in General | Tagged , , , , , , | Leave a comment