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Learning for Better Living
Beware of tax scams
Reviewed and adapted with special permission from the IRS by: Andrew Zumwalt, Extension associate, Personal Financial Planning, University of Missouri Extension
Don’t fall victim to tax scams. These schemes take several shapes, ranging from promises of large tax refunds to illegal ways of “untaxing” yourself.
The IRS suggests that you remember three important guidelines:
- You are responsible and liable for the content of your tax return.
- Anyone who promises you a bigger refund without knowing your tax situation could be misleading you, and
- Never sign a tax return without looking it over to make sure it is accurate.
Beware of these common schemes.
Return Preparer Fraud:
Dishonest tax return preparers can cause many headaches for taxpayers
who fall victim to their ploys. Such preparers derive financial
gain by skimming a portion of their clients’ refunds and charging
inflated fees for return preparation services. They attract new
clients by promising large refunds. Choose carefully when hiring
a tax preparer. As the saying goes, if it sounds too good to be
true, it probably is. No matter who prepares your tax return you
are ultimately responsible for its accuracy and for any tax bill
that may arise due to a questionable claim.
Identity Theft:
It pays to be choosy when it comes to disclosing personal information.
Identity thieves have used stolen personal data to access financial
accounts, run up charges on credit cards and apply for new loans.
The IRS is aware of several identity theft scams involving taxes
or scammers posing as the IRS itself. The IRS does not use e-mail
to contact taxpayers about issues related to their accounts. If
you have any doubt whether a contact from the IRS is authentic call
800-829-1040 to confirm it. Of particular interest are emails related
to refunds or economic stimulus payments. Again, the IRS will never
contact you by e-mail to alert you of your personal refund status.
Frivolous Arguments:
Promoters have been known to make outlandish claims that the
Sixteenth Amendment concerning congressional power to establish
and collect income taxes was never ratified; that wages are not
income; that filing a return and paying taxes are merely voluntary;
and that being required to file Form 1040 violates the Fifth Amendment
right against self-incrimination or the Fourth Amendment right to
privacy. Don’t believe these or other similar claims. Such arguments
are false and have been thrown out of court. Taxpayers have the
right to contest their tax liabilities in court, but no one has
the right to disobey the law.
For more information about these and other tax scams visit the IRS Web site at http://www.irs.gov/ - this is the link of the official IRS governmental Web site. Remember that for the genuine IRS Web site be sure to use .gov. Don't be confused by internet sites that end in .com, .net, .org or other designations instead of .gov.
Related links:
Resource: Andrew Zumwalt, 573-884-1690
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Last update: Monday, February 01, 2010
