William Penn Life, 2002 (37. évfolyam, 1-11. szám)
2002-03-01 / 3. szám
"If something sounds to good to be true, it probably is." For example, if one client has four children they only need to list two for EITC purposes to get the maximum credit. The preparer will list two children on the first client's return and list the other two on another client's tax return. The preparer and the client "selling" the dependents split a fee. The IRS prosecutes the preparer of such fraudulent claims, and participating taxpayers could be subject to civil penalties. • IRS “agent” comes to your house to collect. First, do not let anyone into your home unless they identify themselves to your satisfaction. IRS special agents, field auditors and collection officers carry picture IDs and will normally try to contact you before they visit. If you think the person on your doorstep is an impostor, lock your door and call the local police. To report IRS impostors, call the Treasury Inspector General's hotline at 1-800-366-4484. • “Put your money in a trust and never pay taxes again.” Promoters of abusive trust schemes may charge $5,000 to $70,000 for "trust" packages. The fee enables taxpayers to have trust documents prepared, to utilize foreign and domestic trustees as offered by promoters and to use foreign bank accounts and corporations. Although these schemes give the appearance of the separation of responsibility and control from the benefits of ownership, these schemes are in fact controlled and directed by the taxpayer. A legitimate trust is a form of ownership that completely separates responsibility and control of assets from all of the benefits of ownership. • Improper home-based business. This scheme purports to offer tax "relief" but in reality is illegal tax avoidance. The promoters of these schemes claim that individual taxpayers can deduct most, or all, of their personal expenses as business expenses by setting up a bogus home-based business. But, the tax code firmly establishes that a clear business purpose and profit motive must exist in order to generate and claim allowable business expenses. • Claim disabled access credit for pay phones. Con artists sell expensive coin-operated pay telephones to individuals, contending they can claim a $5,000 Disabled Access Credit on their tax return because the telephones have volume controls. In reality, the Disabled Access Credit is limited to bona fide businesses that are coming into compliance with the Americans with Disabilities Act. • African-Americans get a special tax refund. Thousands of African-Americans have been misled by people offering to file for tax credits or refunds related to reparations for slavery. There is now such provision in the tax law. Some unscrupulous promoters have encouraged clients to pay them to prepare a claim for this refund. But the claims are a waste of money. Promoters or reparations tax schemes have been convicted and imprisoned. Those who file such a claim could face up to $500 in penalties if they do not back away from the claim. If you think you have been approached by someone promoting one of these scams, or if you suspect tax fraud, you should call the IRS at 1-800-829-0433. |pj] Money Links For more free information about these and other scams and how to avoid becoming a victim of such schemes, as well as other income tax-related topics, contact: O Internal Revenue Service 1-800-829-1040 www.irs.gov your future withaWPA tax-deferred annuity. New 9-Year Surrender Charge Annuity New 5-Year Surrender Charge Annuity New No Surrender # A AO/ Charge Annuity O*vV/0 6.25% 6.75% For more information about our annuity plans, contact your local WPA representative or our Home Office toll-free at 1-800-848-PENN. William l’rnn Lile, March 2002 \
