Tag

taxes

Tax Scam Victims Avoidance

Tax scam victims have become a targeted work for tax fraud.  Paying taxes is a fact of life, it always has been, and it always will be. For years the IRS has warned taxpayers about tax fraud, tax schemes, and plain old individual dishonesty. In many cases the dishonesty can result in stiff financial penalties and the fraud can result in jail. But still, this warning continues to evade some taxpayers. So be for warned.

Start Now, Get help with your financial issues, Develop top level finances.

This evening on our nightly news one of the potential tax victim was rescued by a tax cab driver. An elderly lady told the tax cab driver she needed to go to her bank. She was not aware that she owed the IRS 25 thousand dollars. He ask her several questions and found out someone called her on the phone and told her to wire money to pay off her taxes.

He convinced her that he did not think it was the IRS, there are several tax fraud calls and he would take her to the police station. They informed her that it was not the IRS who called her. Creating tax scam victims continues in the year 2020, but thanks to an aware taxi cab driver she was rescued.

The IRS wants you to know many tax scams and schemes still exist and is heavily promoted as legal by con artist, and individual taxpayer dishonesty is not an option.

1. Tax Scam Victims

As per the IRS, they look shady. They lurk in the shadows. They try to entice you with promises of bigger refunds, audit-proof tax breaks or sure ways to beat the IRS. But the only sure thing about them is that they can cause you trouble … a lot of trouble. If you are aware of this you can avoid becoming a tax scam victim.

Defend yourself by reviewing the IRS update of the Dirty Dozen – 12 schemes and tax scams prowling for victims during tax season.

Check out what IRS agents are finding in their criminal investigations of crooked tax preparers – and their tips for avoiding these characters.

 The IRS urges people to avoid these common schemes targeted to making you a tax scam victim:

Go here for fantastic finances that grow and protect you now and in the future.

2. Offshore Transactions

Some people use offshore transactions to avoid paying United States income tax. Use of an offshore credit card, trust or other arrangement to hide or underreport income or to claim false deductions on a federal tax return is illegal.

Through April 15, the IRS is offering people with improper offshore financial arrangements a chance to make things right. Eligible taxpayers who step forward will not face civil fraud and information return penalties. A taxpayer involved in these schemes who does not come forward now, however, will be subject to payment of taxes, interest, penalties and potential criminal prosecution.

People interested in participating in the program, called the Offshore Voluntary Compliance Initiative, can contact the IRS by calling 215-516-3537 (not toll-free).

3. Identity Theft

Identity thieves use someone’s personal data to steal his or her financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name and even file fraudulent tax returns.

The IRS is aware of at least two recent identity theft scams involving taxes or the IRS. In one, tax preparers allegedly used information, such as Social Security numbers and financial information, from their clients’ tax returns to commit identity theft. In another, fraudsters sent bank customers fictitious bank correspondence and IRS forms in an attempt to trick them into disclosing their personal and banking data.

For taxpayers, it pays to be choosy about disclosing personal and financial information. And the IRS encourages taxpayers to carefully select a reputable tax professional.

Creating Fantastic Finances That Bank, Find Out How…

4. Phony Tax Payment Checks

In this scheme, con artists sell fictitious financial instruments that look like checks to pay a tax liability, mortgage and other debts. The con artists may also counsel their clients to use a phony check to overpay their taxes so they can receive a refund from the IRS for the overpayment. The false checks, called sight drafts, are worthless and have no financial value. It is illegal to use these sight drafts to pay a tax liability or other debts.

5. African-Americans Get a Special Tax Refund

Thousands of African-Americans have become tax scam victims and misled by people offering to file for tax credits or refunds related to reparations for slavery. There is no such provision in the tax law. Some unscrupulous promoters have encouraged clients to pay them to prepare a claim for this refund. But the claims are a waste of money.

Promoters of reparations tax schemes have been convicted and imprisoned. And taxpayers could face a $500 penalty for filing such claims if they do not withdraw the claim.

In early 2002, the slavery reparations scam ranked as the No. 1 scheme on the Dirty Dozen list. Following a sweeping public outreach campaign and assistance from members of the Congressional Black Caucus and other organizations, the number of reparation scam claims fell sharply. Tens of thousands of claims were received in 2001, but the claims fell to less than 50 per week in 2002.

6. No Taxes Withheld From Wages

Illegal schemes are being promoted that instruct employers not to withhold federal income tax or employment taxes from wages paid to their employees. These schemes are based on an incorrect interpretation of tax law and have been refuted in court. A recent flurry of court actions has been taken against promoters of these schemes. Taxpayers who have concerns about their employer and employment taxes can get help by calling the IRS at 1-800-829-1040.

A Car Buying Couse That Will Save You Thousands…

7. Improper Home-Based Business

This scheme purports to offer tax “relief” but in reality is illegal tax avoidance. The promoters of this scheme claim that individual taxpayers can deduct most, or all, of their personal expenses as business expenses by setting up a bogus home-based business. But the tax code firmly establishes that a clear business purpose and profit motive must exist in order to generate and claim allowable business expenses.

8. Pay the Tax, Then Get the Prize

The caller says you’ve won a prize, and all you have to do to get it is to pay the income tax due. Don’t believe it. Someone who really wins a prize may need to make an estimated tax payment to cover the taxes that will be due at the end of the year. But the payment goes to the IRS – not the caller.

Whether the prize is cash, a car or a trip, a legitimate prize giver generally sends both the winner and the IRS a Form 1099 showing the total prize value that should be reported on the winner’s tax return.

Since tax scam victims appear to not be doing their research and reading news reports they are particularly vulnerable, so please pass these tax scams on to the elderly and underinformed.

9. Frivolous Arguments

Frivolous arguments are false arguments that are unsupported by law. When a scheme promoter says “I don’t pay taxes – why should you” or urges you to “untax yourself for $49.95,” beware. These scams are as old as snake oil, but people continue to be taken in, and many have become tax scam victims. And now they’re on the Internet. The ads may say that paying taxes is “voluntary,” but that’s just plain wrong.

The U.S. courts have continuously rejected this and other frivolous arguments. Unfortunately, hundreds of people across the country have paid for the “secret” of not paying taxes or have bought “untax packages.”

Then they find out that following the advice contained in them can result in civil and/or criminal penalties. Numerous sellers of the bogus schemes have been convicted on criminal tax charges.

10. Social Security Tax Scheme

Taxpayers shouldn’t fall victim to a scam offering refunds of the Social Security taxes they have paid during their lifetimes. The scam works by the victim paying a “paperwork” fee of $100, plus a percentage of any refund received, to file a refund claim with the IRS.

This hoax fleeces the victims for the up-front fee. The law does not allow such a refund of Social Security taxes paid. The IRS processing centers are alert to this hoax and have been stopping the false claims.

Purchase a Home the right way and live affordably for decades…

11. “I Can Get You a Big Refund …for a Fee!

Refund scheme operators may approach someone wanting to “borrow” their Social Security number or give him or her a phony W-2 so it appears that the person qualifies for a big refund. They may promise to split the refund with that person, but the IRS catches most of these false refund claims before they go out.

When one does go out, the participant usually ends up paying back the refund along with stiff penalties and interest. Two lessons to remember: 1) Anyone who promises someone a bigger refund without knowing their tax situation could be misleading them, and 2) Never sign a tax return without looking it over to make sure it’s honest and correct.

12. Share/Borrow EITC Dependents

Unscrupulous tax preparers “share” one client’s qualifying children with another client in order to allow both clients to claim the Earned Income Tax Credit. For example, one client may have four children but only needs to list two to get the maximum EITC.

The preparer will list two children on the first client’s return and the other two on another client’s tax return. The preparer and the client “selling” the dependents split a fee. The IRS prosecutes the preparers of such fraudulent claims, and participating taxpayers could be subject to civil penalties.

in 60 days learn to create fantastic finances

13. IRS “Agent” Comes To Your House To Collect

First, do not let anyone into your home unless they identify themselves to your satisfaction. IRS special agents, field auditors and collection officers carry picture IDs and will normally try to contact you before they visit.

If you think the person on your doorstep is an impostor, lock your door and call the local police. To report IRS impostors, call the Treasury Inspector General’s Hotline at 1-800-366-4484.

Beyond the “Dirty Dozen,” the IRS sees many more tax schemes. Some examples include home-based business scams, disabled access credit for pay phones and a variety of improper abusive trusts.

“The best advice for taxpayers is to remember the concept of ‘buyer beware,’” Wenzel said. “Think carefully before paying for services or signing important documents.

And don’t be fooled by outrageous promises. If something sounds too good to be true, it probably is.” Don’t help a con person make you one of many tax scam victims.

These times are taxing, state taxes, federal taxes, do your taxes

Knowing Basics of Small Business Taxes Will Protect You and Your Business

Knowing Basics of Small Business Taxes Will Protect You and Your Business

Basics of Small Business Taxes

It is imperative that if you have a small business, you should have, at least, the basics of small business taxes so you can check your returns and understand why your accountant has chosen the deductions for you.

Small business taxes

Where to Get Tax Forms

All tax forms are available at IRS.gov. Search and print any form you need.

What is a Tax Publication?

Something every small business should know about are tax publications. You can verify any major tax issue when you read a publication, they hold the IRS facts. There are publications for home selling, home buying, selling a business, running a business, tax deductions for small business, and much more.

All the facts are listed in the publications. So, when you are told to check your taxes, the place to verify tax facts are the IRS publications. You will have to search publications and sometimes order the one you need, but most are online at the IRS. 

Publication 17 gives you all of the general information you need to file an individual federal tax form. Small Business Publications are here to make sure you get all of your deductions you qualify for and verify your forms.

Download the Federal Tax Bulletin at IRS.gov

Basics of small business taxes

Importance of Tax Timing and Honesty

It is better to pay your taxes on time and not risk ruthless penalties, than to get an extension and go over your extension or run out of money. If you are a small business, you could miss your social security contribution, and have to pay later.

You can go online to make sure you are getting credited with your social security contribution if you file an extension and the credit is not posted, this can be corrected.

Understand the best of tax and money,Chat with Lois

Small Business Taxes Estimated

Some new (first year) business owners forget that they have to pay taxes on profits at year end, so they inadvertently spend all of their profits.

At the end of the first year when taxes are calculated you will be put on a quarterly estimated tax schedule and will also be told how much you owe for your first year. This means you must save funds from your first year into a tax savings account on your own.

Most first year business owners will be safe to put aside at least 30% of their first-year profits. Now, in subsequent years you will have quarterly estimated payments you will make every 3 months, these payments are based on your previous years income, so be prepared to pay over your estimated taxes, at year end, if your income skyrockets the previous year.

Who is Responsible for Your Tax Form Calculations?

It benefits you as a small business to use a qualified enrolled agent or certified public accountant. No matter who does your taxes it is important to understand that you are responsible for what is put on your tax forms.

You will have to pay penalties and interest on understated income if your taxes are done incorrectly. So, create a system where you can verify your tax deductions and the math on your tax forms.

Understand the best of finances,Chat with Lois

Every Business is Based on Profits and Losses

Because every business is based on profits and losses, the internal revenue service wants to know the details of your profits and losses. Those are recorded on Schedule C of 1040.

You should have receipts for everything you have done, and each receipt should be part of a category listed on your Schedule C. From expenses and the income you take in, you can calculate your profits and losses.

Download Schedule C at IRS.gov

1099 Income; Verify that you have all your 1099 statements

When you do business with another business and are paid income and they file a 1099 (income statement) they send you a copy. You must report that income to the IRS and claim it on your taxes.

Understand Tax Publications and Their Valuable Information

Something every small business should know about are tax publications. You can verify any major tax issue when you read a publication, they hold the IRS facts. There are publications for home selling, home buying, selling a business, running a business, tax deductions for small business, and much more.

All of the facts are listed in the publications. So, when you are told to check your taxes, the place to verify tax facts are the IRS publications. You will have to search publications and sometimes order the one you need, but most are online at the IRS.

Download the Small Business Tax Guide at IRS.gov

Importance of Tax Timing and Honesty

It is better to pay your taxes on time and not risk ruthless penalties, than to get an extension and go over your extension or run out of money. If you are a small business, you could miss your social security contribution, and must pay later.

You can go online to make sure you are getting credited with your social security contribution if you file an extension and the credit is not posted, this can be corrected.

basics of small business taxes

Estimated Taxes for Business

Some new (first year) business owners forget that they must pay taxes on profits at year end, so they inadvertently spend all their profits. At the end of the first year when taxes are calculated you will be put on a quarterly estimated tax schedule and will also be told how much you owe for your first year. This means you must save funds from your first year into a tax savings account on your own.

Most first year business owners will be safe to put aside at least 30% of their first-year profits. Now, in subsequent years you will have quarterly estimated payments you will make every 3 months, these payments are based on your previous years income, so be prepared to pay over your estimated taxes, at year end, if your income skyrockets the previous year.

Who is Responsible for Your tax Form Calculations?

It benefits you as a small business to use a qualified enrolled agent or certified public accountant. No matter who does your taxes it is important to understand that you are responsible for what is put on your tax forms. You will have to pay penalties and interest on understated income if your taxes are done incorrectly.

So, create a system where you can verify your tax deductions and the math on your tax forms. So, knowing the basics of small business taxes will protect you and your business.

women love cars. So, buy them the right way. 

Interested in a Free Discussion about how I can help you with Fantastic Finances? Let’s Chat – Make an Appointment Here


GET YOUR FREE Fantastic Finances Tips Course by eMail

7 STEPS OF NEW INVESTORS FREE PDF

YOUR FREE PRINTABLES FOR HOME OR BUSINESS MORE FREE PDFS

JOIN MY PERSONAL FINANCE FACEBOOK PAGE

JOIN OUR ENEWS AND GET A 30-DAY MsFinancialSavvy Tips! ECOURSE

Tax Evasion an Option For the Tax Adverse, 5 Reasons

Tax Evasion is Not an Option
Tax evasion is not a 5th amendment right

Tax evasion is a practice employed by some tax revolt groups and individuals who feel, for different reasons, that paying taxes are not fair to them, either legally or morally. They take their excuse for tax evasion even further, by claiming it is their “fifth amendment right”. The government and interpreters of the law are in disagreement with tax evaders on this topic.

A “Tax” is a compulsory payment imposed or levied upon a taxpayer by their state, federal, or local governments, against their income, product sales, or services. This compulsory payment angers some taxpayers to the degree, that they resort to tax evasion.

The word tax evasion is often misunderstood as tax fraud or penalty, but tax evasion is a totally different term, having a different role in the scheme of “all things taxed”.

The word tax evasion is often misunderstood as tax fraud or penalty, but tax evasion is a totally different term, having a different role in the scheme of “all things taxed”.

Every American employee, business owner, or person with a qualified financial windfall, having an income or a qualified financial gain, normally owes a tax liability to the state, federal or local government, and being a mandatory payment, some resent paying taxes as an over-reach by government. This is the main reason, every year,  thousands of Americans decide to skip paying taxes.

What is tax evasion? How is it different from tax avoidance and tax fraud?

Tax evasion is actually a subset of tax fraud which usually entails a deliberate act of misrepresentation of taxable income to the IRS or Internal Revenue Service. It refers to any attempt by  a taxpayer to avoid paying taxes, usually by some type of illegal methods.

Tax evasion should never be confused with tax avoidance because the latter can be a legal way of avoiding taxes by means of legal deductions, sometimes simple and some very complicated, but always allowed by law.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Get 3 Amazing Gifts When You Join, MsFinancialSavvy Success Tips eNews!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Tax fraud can involve cases that are civil and criminal in nature, while tax evasion usually includes cases which are criminal in nature.

Types of tax evasion

There are a number of ways an individual can evade his/her tax, some of the most common ones are enlisted below:

  • Reporting less than actual income or failing to report any cash income.
  • Claiming false deductions or showing inflated donations to charitable institutions in order to avoid tax payments.
  • Filing an intentionally deceptive and incorrect tax return or deceiving the IRS with misleading details.
  • Omitting a property or not understating the value of property owned, etc.


Why tax evasion is not a short term or long term option for those who don’t like taxes

Taxes are a legal payment that every American with income or gains is obligated to pay the government– both federal and state. Taxes are usually levied on the income of an individual which can be in the form of a salary, capital gains or income from miscellaneous sources, but the idea of giving up a considerable portion of their income to the government disturbs many taxpayers.

People feel that the government is actually exploiting their fundamental rights by taking away a part of their hard-earned money, and as a result, they resort to tax evasion.

However, tax evasion is never a short or long term option for people who don’t like paying taxes, because taxes are a legal income you owe the government. Our government spends tax money making sure public services are available to you and your family, such as government hospitals, schools, roads, dams, and bridges, as well as streets,  government buildings and salaries of government officials.

Thus, your taxes are the government’s rightful claim and are therefore the law, you must pay your share.

Indulging in tax evasion would mean that you are subject to punishments in the form of several penalties and possibly prosecution. There is a paper trail for everything you do, and the government will eventually find you if you evade taxes. So, I have one bit of advice for you, “pay your taxes, be honest about income”, otherwise tax evasion will eventually open you to severe penalties and punishment.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Get 3 Amazing Gifts When You Join, MsFinancialSavvy Success Tips eNews!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


What happens when you evade taxes?

A person suspected of tax evasion is first; interrogated by the Internal Revenue Service, and if proven guilty the suspect is immediately imposed with penalties. However, in certain cases, the IRS may deploy The Central Investigation Division to collect further evidence.

If an individual is found guilty, he may be imposed with the following penalties (these penalties are subject to change from year to year):

  • If a person is held guilty for cheating on taxes owed to the government, then his penalty may include a prison sentence of up to 5 years or a fine of up to $250,000 or both. In the case of corporations, the fine may be up to $500,000.
  • Filing a wrong return; having misleading information where the motive of the suspect was to evade tax, in this case, the penalty would be imprisonment up to 3 years or fine of up to $250,000 or both. In the case of corporations, this fine may go up to $500,000.
  • A penalty of 100% of the amount not paid by employers is to be paid by employers when they do not pay the required taxes to government agencies. In the case of businesses with employees, there are certain social security benefits that every employer needs to pay on his employees’ salary, and in the case of failure to pay the required tax, the employer will have to pay 100% of the amount withheld.
  • Non-filing of the tax return also attracts certain penalties and thus a person held guilty may get 1-year imprisonment or $100,000 fine or both. The amount of a fine is $200,000 in the case of corporations.
  • The penalty for failure to file a timely tax return- If a taxpayer who is required to file a tax return fails to do so within a stipulated time period then, he may be charged with a penalty. There will be a 5% penalty on the amount of tax unpaid per month until the return is made, but up to a maximum of 25%.
  • The penalty for failure to pay a timely tax- If a tax- payer is unable to pay his taxes due by the return date then, he/she will have to pay a penalty of 0.5% of the amount of unpaid tax per month up to a maximum of 25%.
  • The penalty for non-payment of stipulated dues- If a taxpayer is unable to pay his taxes even after being notified about the same within a given time period then, he will have to pay interest on the amount withheld along with a penalty of 0.5% per month applied to the unpaid amount.

easy budget planner, prevent tax evsion


Prevent tax evasion under all circumstances

By now you know that tax evasion is a crime and the best way to avoid penalties and fines imposed by the IRS, states, and local governments, would be to follow all tax rules and laws. Make use of legal deductions and avoid anything not permitted by tax law. In case you will be late filing your return, ask for an extension from the IRS, clear your tax debts as soon as possible and always stay away from tax evasion.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Get 3 Amazing Gifts Join, MsFinancialSavvy Success Tips eNews!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Amazon Kindle - 68 Powerful Ways to Save Money

5 reasons tax evasion is not a 5th amendment right at msfinancialsavvy

These are five great reasons tax evasion is not your 5th amendment right

How to Protect Your Tax Returns and Pay Taxes Online

Tax returns can be protected and avoid unnecessary stress.

How to protect tax returns and pay taxes online


Tax preparation and tax preparer selection are not all that difficult, but there are those who make it difficult by not adhering to a few simple rules.


Avoid tax fraud by choosing your tax preparer carefully, and carefully communicating with your tax preparer once he or she is chosen. You can pay taxes online  with the new IRS systems.

The IRS defines someone who is an Abusive Tax Preparer as someone who prepares fraudulent or abusive tax returns for compensation. Here are some of the ways they prepare false tax returns that are easily detected by the IRS.

  • They may inflate expenses related to business or personal use.
  • State false deductions, give tax credits that are not allowed, state excessive exemptions
  • Give false tax credits, such as business equipment credits or personal Earned Income Tax Credit (EITC)
  • Claiming false income and loss statements
  • Claiming non-existent charitable contributions
  • Claiming false dependents
  • Preparing fraudulent schedule C (for business expenses)
  • Claiming false medical and dental expenses; usually over inflating medical cost so they can deduct them.

These and other deductions are usually caught with the IRS “red flag” system as tax fraud. The return is rejected for review because it does not make sense according to computer analyses of the return. You can check own tax forms, filing your own tax forms, and pay taxes online.

The IRS has a special division whose sole purpose is to investigate tax preparer abuse and fraud. It is the IRS Criminal Investigation Return Preparer Program (RPP) that flags the fraudulent returns. Through the RPP, all fraudulent tax preparers are subject to criminal charges.

The abusive tax preparer usually prepares taxes for large numbers of people. The people, who use the services and receive bad tax preparation, will later be charged with interest, penalties, and sometimes civil and even criminal charges.

In 2010 the IRS launched the tax preparer oversight program. This allows the IRS to monitor and catches tax preparers easier. It is important for every taxpayer to make absolutely sure they have closely researched their tax preparer, so they can choose a preparer carefully. The taxpayer is responsible for every single item their tax preparer places on their return.

With electronic filing of income tax returns, and refund anticipation loans (RAL), came new abuses in filing for tax preparers. There were fake tax preparers, filing fake electronic returns and taking fake RAL’s. Since 1977 the Criminal Investigation Unit in the 10 IRS campuses, monitor returns for fraud at their Fraud Detection Centers (FDC). The FDC’s role is to detect tax fraud and tax fraud schemes, and send them to the Criminal Investigation Unit of the IRS.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Get 3 Amazing Gifts When You Join, Live Rich Save Money Now!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Here are questions you can ask your tax preparer before you get started.


1.   What are your qualifications?

A CPA or Enrolled agent are the best qualified to do taxes. Both of these designations regularly take classes and take an exam for their designations. A CPA or certified public accountant is the highest qualified in the tax field.

2.   Would you be willing to lie on my return?

If your preparer says yes, run as fast as you can. This can get both of you in trouble so why would he/or she be willing to lie. Perhaps your preparer is not licensed. Licensed preparers can lose their designation if they are caught lying on a return.

3.   How is your information protected in their office?

The computer and backup files should be secure during and after hours. All paper files should be secured in locked cabinets. Identity theft is on the rise.

Easy Budget Planner for an outrageously great budget4.   What are your costs?

Agree on a tax preparation fee before you hand over your information, so there are no surprises.


5. Can I pay you extra to re-check my return against documents I have given you?

Ask your preparer to re-check your return. If you have the ability to check your return against your documents that is fine. But, you absolutely should check for the small things: correct spelling of your name, correct social security number, correct occupation, correct income, and any other minor items, which could turn major if entered incorrectly.


6.   How Long Will It Take?

It is your responsibility to organize your tax information and submit it to your tax preparer early. It is your tax preparer’s responsibility to get the information back to you in a timely manner, so you can file your taxes well before the tax deadline.

The Internal Revenue Service has several ways to find dishonest tax preparation. They have a series of checks and balances in their system that can signal fraud.

Why would you risk getting caught by the Internal Revenue Service when the penalties are far, far greater than the savings you will get for dishonesty, by you or your tax preparer? There are many ways your preparer can be dishonest about preparing your tax return.

He or she can make it seem as though you have more business or personal expenses than is true. I have listed many of the ways dishonest tax preparers try to fool the IRS. Some of the more common are; going through the trouble of presenting false receipts for equipment or furniture not purchased.

They can get you a credit where you do not deserve one. They can make false claims about deductions you are not entitled to. False receipts can be detected by the IRS, as well as other forms of fraud.

Understand how tax preparers charge. This is another area where you can get scammed. Tax preparers charge according to the difficulty of your tax return. This should be a flat fee. If a tax preparer charges you according to the percentage of the money you receive from your return or if they claim they can get you a higher return than anyone else, run, as fast as you can. This should raise a red flag in your mind.

You have heard this in other articles I have written, but I will say it over and over. You are responsible for every item that goes into your tax return. You will be heavily fined and penalized for dishonesty in your tax return. So, check your tax return carefully. If there is something you don’t understand, ask your tax preparer to explain it. As you can see from all of the above, you will sleep better for years to come if you file an honest return.

But, better yet, you will save money, lots of money in the long run if you are honest with your return, and you choose an honest tax preparer. You can pay taxes online when you find you own money after tax preparation.

Be sure your preparer signs your return and gives you a signed copy of the return, so you can verify everything on your return is correct before you mail it, and avoid tax fraud at all cost.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Get 3 Amazing Gifts When You Join, Live Rich Save Money Now!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

How to protect tax returns and pay taxes online