William Penn Life, 2002 (37. évfolyam, 1-11. szám)
2002-03-01 / 3. szám
DIRTY DOZEN The Internal Revenue Service warns taxpayers of 12 common scams • <1 WASHINGTON - The Internal Revenue Service recently issued a nationwide alert to taxpayers warning them not to fall victim to what it calls the "Dirty Dozen" tax scams. These scams take several shapes, ranging from sharing dependents to illegal ways of "untaxing" yourself. "[These] schemes surface each year as tax filing season begins. Con artists shamelessly take advantage of people, charging fees for their illegal tax schemes," said IRS Commissioner Charles O. Rossotti. "People should be on-guard for these scams. If something sounds too good to be true, it probably is." The IRS urges people to avoid these common schemes: • No taxes being withheld from your wages. Illegal schemes are being promoted that instruct employers not to withhold federal income tax or employment taxes from wages paid to their employees. These schemes are based on an incorrect interpretation of tax law and have been refuted in court. • “I don’t pay taxes—why should you?” Con artists may talk about how they don't file or pay taxes and then charge people a fee to share their "secret." The real secret that these people don't reveal is that many of them actually do file and pay taxes-they just won't publicly admit it. People that fail to file or pay taxes are subject to civil and/or criminal tax penalties. • Pay the tax, then get the prize. The caller says you've won a prize, and all you have to do to get it is pay the income tax due. Don't believe it. If you really won a prize, you may need to make an estimated payment to cover the taxes that will be due at the end of the year. But the payment goes to the IRS, not the caller. Whether you've won cash, a car or a trip, the prize giver generally send you and the IRS a Form 1099 showing the total prize value that should be reported on your tax return. • Untax yourself for $49.95. This one is as old as snake oil, but people continue to be taken in. And now it's on the Internet. The ads may say that paying taxes is "voluntary," but it is absolutely wrong. The U.S. courts have continuously rejected this and other similar arguments. Unfortunately, hundreds of people across the country have bought "untax packages" before finding out that following the advice contained in them can result in civil and/or criminal tax penalties being assessed. Numerous sellers of these bogus packages have been convicted on criminal tax charges. • Social Security tax scheme. Taxpayers shouldn't fall victim to a scam offering them refunds of the Social Security taxes they have paid during their lifetime. The scam works by the victim paying a "paperwork" fee of $100, plus a percentage of any refund received, to file a refund claim with the IRS. This hoax fleeces the victims for the up-front fee. The law does not allow such a refund of Social Security taxes paid. The IRS processing centers are alert to this hoax and have been stopping the false claims. • ”1 can get you a BIG refund...for a fee.”Refund scheme operators may approach you wanting to "borrow" your Social Security number or give you a phoney W-2 so it appears that you qualify for a big refund. They may promise to split the refund with you, but the IRS catches most of these false refund claims before they go out. And when one does go out, the participant usually ends up paying back the refund along with stiff penalties and interest. Two lessons to remember: (1) anyone who promises you a bigger refund without knowing your tax situation could be misleading you; and (2) never sign a tax return without looking it over to make sure it's honest and correct. • Share/borrow EITC dependents. Unscrupulous tax preparers "share" one client's qualifying children with another client in order to allow both clients to claim the Earned Income Tax Credit. William Penn I,iff, March 2002
