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.
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
Overseas bank accounts have long been a tool of individuals and corporations seeking to hide money from the U.S. government and ultimately avoid paying income taxes on the earnings. More and more ordinary taxpayers are being lured into hiding their money overseas in order to conceal their income. And this is illegal.
It’s not a crime to use an overseas bank strictly for the purpose of banking services. It is illegal if your purpose is to illegally evade taxes. Offshore banks do want your money and will make it easy for you to access with a debit card or credit card. But if you do this, make sure you keep good records and continue to report all your income to the IRS, as required by law. If you don’t, you could find yourself in a lot of trouble in the future.