The Top 5 Biggest Tax Scams To Avoid!

By Author: DANNY BREEDLOVE
Total Articles: 11
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No one really likes to do it, but taxes are just another part of life. No matter how painful filing maybe, you have to do. You don’t want to make things any more difficult by falling for pesky tax scams that can cost you thousands and thousands of dollars or even end up resulting jail time! Here are 5 tax scams you want to look out for and not get caught up in for any reason:

1.Don’t be persuaded to use frivolous arguments in order to avoid paying taxes. Many people believe that filing a tax return is voluntary however, it is not. The penalty laws are stiffer for people who don’t file than for people who owe taxes. Don’t let anti-tax people lead you to believe that wages for personal services don’t count as income. Any money that’s collected to help with your income is income tax that has to be filed. Always check with a certified IRS expert on what is considered an exemption and what is not to avoid any damaging penalties.

2.Never report false income or expenses. Many accountants advise their customers to inflate their income so that they qualify for more tax breaks. The IRS constantly sees people ...
... who inflate their income so they get a bigger refundable tax credit for which they wouldn’t normally qualify. Some accountants even advise people to file excessive claims for uncommon tax breaks like the fuel tax credit. Don’t go for it. Always be honest about your taxable income and expenses so you don’t end up with penalties or even worse, criminal prosecutions.

3.Be on the lookout for bogus charitable organizations. Yes, you can benefit from donating to legit organizations, but you won’t get credit for donating to illegal charities. Always research a charity to insure that they’re legit so that you don’t get in trouble for filing a false tax credit.

4.Don’t fall for the offshore account scams. Sure, putting money in to a foreign bank account is legal. However, putting money into a foreign bank account just to hide it from the IRS is illegal. Just because the money is being put in to an offshore account doesn’t mean that you don’t have to pay taxes on it. The IRS does audit offshore accounts and has pursued criminal charges in some cases. To avoid this nasty mess, simply report all of your income whether it’s in an offshore account or not.

5.Always use a legit tax professional when filing your taxes. There are always a few scammers out there that want to make a lot of money off of your tax return. To avoid getting scammed by these tax pros, make sure they have a credible tax ID number. Always make sure that the preparer signs your return. Not doing so may be proof that he is trying to hide the fact that he did your taxes at all. It may take some additional work, but better to be safe than sorry!