The IRS Dirty Dozen Tax Scams: Disguised Corporate Ownerships
Each year, the Internal Revenue Service releases a list of the 12 most popular tax scams for the year. The 2008 list is out,
and I thought it would be fun to go through them individually to show
you how criminals are trying to take advantage of taxpayers. The basic
idea behind all of these scams is simple: prey on a taxpayer's fear of
the IRS or their desire to avoid paying taxes.
Use the
information here to help avoid being taken advantage of by a scammer
who wants your money. And use this basic rule of thumb for any offer or
communication regarding taxes: If it sounds too good to be true, it
probably is. Don't get fooled by claims regarding mysterious refunds or
tax bills. When in doubt contact the IRS directly for help with your
situation.
Corporations are legitimate entities through which we do business, and there are some legal and tax advantages to corporations that are undeniable. But some people set up "shell corporations,".... basically entities that exist only to hide or disguise income. They don't have a real business purpose and don't have legitimate operations.
Using a shell corporation to hide income, underreport income, avoid filing tax returns, launder money, or engage in other financial crimes is wrong. The IRS is looking for these types of schemes because they cost the government a lot of money in terms of uncollected taxes. Don't get caught up in a scheme like this.
