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
One popular tax scam promoted by cheaters trying to sell you their “plan,” is the “zero wage” scam. The basic idea is that you report zero income from wages, even if you have a W-2 that clearly shows you have wages. The rationales behind this are varied, but the most common argument is that your personal labor does not create “income.” Rather, you are working and trading that work for dollars that are exactly equal to the value you provided, so there is no gain or income to you.
This wacky idea is completely wrong, and you shouldn’t go along with any plan that suggests you not claim your wages as income. Don’t try to “correct” your W-2 with the IRS and make all the income numbers zero. That will get you in trouble too.