Many taxpayers get trapped into participating in
illegitimate tax schemes and end up with tax troubles. Tax frauds use various
methods to either steal a taxpayer’s financial and personal information or dupe
them into sharing their tax information so that they can carry out tax theft. Some
of the popular abusive tax schemes are abusive foreign trust schemes and false
Abusive tax schemes violate the Internal Revenue Code, but since
most taxpayers are not aware of all the various tax rules, fraudsters often
succeed in convincing taxpayers to participate in fraudulent schemes. Many
illegal schemes use the mask of trusts, Limited Liability Companies (LLCs),
International Business Companies (IBCs) and Limited Liability Partnerships
(LLPs), and foreign financial accounts to hide their illegality.
Often, fraudulent schemes try to attract taxpayers by
offering a reduction in taxes, or sometimes even elimination of the entire tax
liability. To achieve that, they use illegal means such as hiding unaccounted
income. Many fraudulent schemes run away with taxpayers’ money.
Taxpayers who wish to participate in trusts and tax schemes
must ensure that they are legitimate before they share their financial and
personal information with anyone. Fraudulent charities also dupe taxpayers into
donating and sharing their tax information. Before donating, participating, or
sharing tax information, ensure that the people and the organization are
legitimate. In most cases, a quick online research and a call to the
organization is sufficient to judge whether it is legitimate or fraudulent.
It is best not to entertain cold calls or strangers
appearing at your doorstep promising tax reduction. Their identity and purpose
cannot be known. The simple rule of not sharing sensitive information online or
with strangers can help taxpayers save themselves from fraud.
Labels: Back Taxes, IRS, IRS Extension, Tax Filing, Tax Scams, Taxpayers