The IRS “Dirty Dozen” tax scams.
- July 28, 2016
- David Greene
- Comments Off on The IRS “Dirty Dozen” tax scams.
Last week we talked about the first half of the IRS Dirty Dozen tax scams. Today I’ll list the last 6. 7. Fake Charities – Scammers pretend to be collecting money for a charity, usually after a disaster. You can determine if the charity is legitimate by going to www.irs.gov. 8. Padded tax deductions – This is a part of the fraudulent tax preparers scam. Again the unsuspecting taxpayer is left with a large tax bill after the IRS audits. 9. Excessive claims for business credits – This is like Number 8. 10. Falsifying income to claim credits – Scammers will convince the taxpayer to claim higher income than he has to get certain credits. It looks good but does not work. 11. Abusive tax shelters – This one has been around for many years. The promoter promises that if you buy into his scheme, you will avoid taxes. 12. Frivolous tax arguments – This one has also been around forever. The most common is the promoter who sells you his book that “proves” that taxes are illegal and only apply to corporations.