This latest scam inquiry by Tax Defense Network found tax scam abusers are using charities, trusts and false social security tax claims to line their own pockets.
Charity Organizations Used for Scam
Scam games continue to revolve around misuse of tax-exempt charity organizations. Donated non-cash assets are difficult to track. This is rich soil for a scam. The IRS found multiple cases where a charity donor claimed full value for the receipt, and the distribution of the same hard asset donation. Some charities conspired with donors in the scam by knowingly exaggerating donation values. The tax-exempt organization might arrange for the same favored donor to buy the item back for far less than the tax receipt given for the donation. Steps taken by the IRS to regulate the untrustworthy nature of scam charities include an increase of penalties for charity scam appraisals applied in The Pension Protection Act of 2006.
Scam Abuse of Trusts
Our Tax Defense Network scam research found the IRS must work full-time to monitor scam abuse in the area of trusts. There are many lawful and ethical uses of trusts in charity, estate, and tax planning. Yet, tax scam vultures encourage wholesale transfer of assets into trusts, making wild promises of income tax reduction.
Tax scam statistics revealed private annuity trusts and foreign trusts were scam trusts of choice for concealing actual taxable income. These scam trusts are often used for personal expenses in an attempt to evade estate and gift taxation. Trust scam companies often can’t back the tax benefits they promise. The IRS is always looking for ways to access scam firms who hide from their tax liability. Tax Defense Network advises all taxpayers interested in trust arrangements to seek the advice of a trusted professional before signing a trust agreement.
Social Security Scam Exaggerates Withholding Credit
Elderly taxpayers have been the targets of scam tax companies giving false and misleading advice. The scam advisor will instruct elderly taxpayers to report nontaxable Social Security Benefits with excessive withholding. This results in a tax return reporting zero income. This type of scam is a set up for skimming off the top. Since the retired pensioner wasn’t expecting a large return, the scam advisor will simply pocket the difference. This will eventually bring about a large tax debt, but the scam advisor will be long gone before then.
Tax Defense Network: Honesty is the Best Policy
The IRS takes tax refund scam artists seriously, and moves aggressively to stop tax abuse. Several laws specifically address elderly tax filing abuse, and can accelerate penalties for the scam companies who prey on social security pensioners. Examine the tax company you plan to hire for your tax needs. Tax Defense Network has been in business for 15 years. Honest advice and pricing have earned us an A- rating with the Better Business Bureau. Contact Tax Defense Network today for tax relief advice you can trust.