IRS Alert

 IRS Alert

Part two of the IRS tax scam alert, "Manipulation of Tax Codes and Laws in Tax Scams," is being reported on by Tax-Definition.org (www.tax-definition.org).
The argument about the abuse of tax rules has escalated as the IRS has released its annual lists for the many tax frauds that are occurring. The purpose of the "Dirty Dozen" is to raise awareness of the many tax scams that occur each year in the United States by examining the various schemes perpetrated by fraud agencies and their owners, who pose as tax experts.

Tax counselors and so-called tax agencies earn their kicks by finding loopholes in the rules and regulations that already exist. They prey on those who are easily duped by their empty promises. You can end up in jail if you follow their tax-deduction advice. The Internal Revenue Service (IRS) vigorously monitors all of the agencies and prosecutes those that commit fraud.

To receive a tax break, some people twist and manipulate the following clauses and doctrines:

Avoiding employment tax withholding: On occasion, tax authorities will tell taxpayers not to withhold employment taxes from their paychecks. This reading of Section 861 is incorrect. A criminal conviction and/or an injunction may result from following anything similar to this. Those who are found guilty by the IRS may be subject to penalties and additional tax charges.

Many individuals seek to avoid paying federal income tax by forming a business only by falsely claiming membership in a religious group or some other fictitious institution. Legally, religious leaders are separated from the ownership of church and other assets when the corporate sole statute grants them tax exemption. As a means of evading taxes, other debts, including child support, the tax authorities encourage the public to invoke this act.

A rise in offshore transactions: Tax authorities often urge their clients to conceal their wealth in offshore accounts and banks. These individuals often avoid paying astronomical amounts in taxes by using methods such as offshore credit cards, life insurance, leasing schemes, wire transfers, and foreign trusts. Those who condone or otherwise support such illicit dealings are the target of the IRS and other American agencies' hunts.

The Internal Revenue Service has received reports of cases of identity theft in which criminals posing as IRS employees have taken sensitive personal information. Credit card and loan applications have been made using the stolen data. Additionally, some individuals have reported receiving fake IRS communications from various organizations. A lot of people tell them sensitive information, including bank account and social security numbers.

You may be surprised to know that there are a variety of tax breaks available to nonprofits and charity institutions. The tax authorities recommend that their clients formally transfer all of their assets to this type of institution. The individual still has full legal possession of the asset. This facilitates the individual's eligibility for tax exemptions and deductions. IRS takes legal action against those found guilty and discourages such conduct.

If you need any kind of information or clarification, it is advisable to contact the IRS directly rather than falling for scam tax agencies.

If you want to know what "e-filing" means, you may read up on it at http://www.tax-definition.org/Define-Electronic-filing.html.

Electronic Filing Tax Documents: http://www.tax-definition.org/tax-forms.

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