Avoiding Tax Scams
February 9, 2012 By The Law Offices of James A. Miller
Tax scams involve trying to cheat individuals out of their money. But it can also involve cheating the government, too. While some of these scams can be very persuasive, it is possible to stay out of their cross-hairs, if you know what to be on the lookout for.
The reason that these scams are so profitable for scammers is because they play off of one area that people do not want to be a part of: owing the government money. That’s why tax scams have been so successful. Because people cringe at the mere thought of being involved in this kind of problem.
One of the most successful scams involves using emails to solicit information. The scammer will send what looks like a legitimate email from an official department, whether it is the IRS or another government entity. The email will say that you are owed money but will need to verify information in order to receive it.
People like the thought of receiving unexpected money, especially from the government, and will gladly turn over their information. In return, the scammer empties the consumer's bank account.
Many tax scams involve using you as a reason to defraud the government. This might seem harmless since it isn't costing you anything, but rest assured, the money is being paid by you- one way or another.
A lot of these scams involve fraudulent information on tax returns, including erroneous deductions or misleading information in order to pay less taxes. Be prepared for these to come back to haunt you and when they do, the person who talked you into doing so will be long gone, with their portion of the spoils. Then it will be up to you to take the heat for the error.
A popular scam involves asking you to transfer money to an offshore account, or another country where they can avoid paying taxes to the government. But in order to do that you have to front some money to get the ball rolling, or for fees that they are not in a position to pay, etc. Of course, there are no funds and you have just paid a fee for nothing.
A variation of this scam is for a person in another country needing your help to transfer money out of their country and into the U.S. It could be an inheritance, money from a failed bank, or someone trying to flee a country. In return, you get to keep a percentage for helping them. You can see where this is going...
ABOUT THE AUTHOR: James Miller
Experienced estate planning attorneys Worcester MA of the Law Offices of James A. Miller estate planning and business planning resources to residents of Worcester MA.
Copyright The Law Offices of James A. Miller
More information about The Law Offices of James A. Miller
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
One of the most successful scams involves using emails to solicit information. The scammer will send what looks like a legitimate email from an official department, whether it is the IRS or another government entity. The email will say that you are owed money but will need to verify information in order to receive it.
People like the thought of receiving unexpected money, especially from the government, and will gladly turn over their information. In return, the scammer empties the consumer's bank account.
Many tax scams involve using you as a reason to defraud the government. This might seem harmless since it isn't costing you anything, but rest assured, the money is being paid by you- one way or another.
A lot of these scams involve fraudulent information on tax returns, including erroneous deductions or misleading information in order to pay less taxes. Be prepared for these to come back to haunt you and when they do, the person who talked you into doing so will be long gone, with their portion of the spoils. Then it will be up to you to take the heat for the error.
A popular scam involves asking you to transfer money to an offshore account, or another country where they can avoid paying taxes to the government. But in order to do that you have to front some money to get the ball rolling, or for fees that they are not in a position to pay, etc. Of course, there are no funds and you have just paid a fee for nothing.
A variation of this scam is for a person in another country needing your help to transfer money out of their country and into the U.S. It could be an inheritance, money from a failed bank, or someone trying to flee a country. In return, you get to keep a percentage for helping them. You can see where this is going...
ABOUT THE AUTHOR: James Miller
Experienced estate planning attorneys Worcester MA of the Law Offices of James A. Miller estate planning and business planning resources to residents of Worcester MA.
Copyright The Law Offices of James A. Miller
More information about The Law Offices of James A. Miller
View all articles published by The Law Offices of James A. Miller
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
