My Neighbor Did It…Why Can’t I?

February, 01 2016 by Charla Suaste
IRS Scam written on a sitcky-note

As this year’s tax season shifts into full gear, tax scammers are at hard at work — attempting to sway fellow taxpayers into overstating their income, claiming credits they don’t qualify for, exaggerating deductions, and taking part in other fraudulent activities and schemes. Tax scams will often appear to be harmless; perhaps shared by a friend or neighbor who has seemingly found a loophole in the tax system. But more often than not, tax schemes are promoted by professional scam artists who have found ways to profit from them.
 

At TaxAudit, we hear these stories more often than we’d like, and, unfortunately, participating in tax schemes is likely to result in a letter from the IRS. At minimum, the outcome will be a larger tax bill, with penalties and interest tacked on to the original amount owed. In the worst case scenario, the perpetrator could be charged with fraud and even be subjected to jail time. So, if you could take any adage with you into the rest of tax season, it should be this one: “If it sounds too good to be true, it probably is.” Or, in other words: If your refund seems too good to be true (or if the tax amount you owe seems impossibly low), it probably is.
 

For those of you who haven’t taken up the challenge of filing your 2015 tax return just yet, keep in mind to stay away from any and all tax advice being offered to you by seemingly well-meaning strangers and friends through social media and office gossip. Take your time to find a tax professional who is knowledgeable, reliable, and above all, trustworthy. Or, if you self-prepare your tax return, be sure you understand each number on your forms before you file.
 

For help finding a local tax return preparer, please visit IRS.gov and search for “IRS Tax Pro Association Partners.” You will be directed to a list of national organizations that will help you locate a variety of tax professionals in your area.

Want peace of mind?

Learn About Prepaid Audit Defense

 
Charla Suaste

Charla Suaste
Communications Content Developer

 
Charla Suaste joined TaxAudit back in 2007 and, over the past 14 years, she has worked in a variety of different roles throughout the organization, including as a Customer Service Representative, Case Coordinator, and Administrative Services Assistant. She now serves as the Communications Content Developer and is passionate about writing, editing, and making even the most complex concepts easy to understand. Outside of work, Charla enjoys traveling, listening to podcasts, and spending time in her garden.
 

Recent Articles

Yes, car insurance can be tax deductible for self-employed taxpayers, Armed Forces reservists, qualified performing artists, and some government officials.
PMI, funding fees, and guarantee fees can be deductible if you qualify. One qualification is your mortgage loan must have been taken out between 2007 and 2021.
A tax lien occurs when the IRS makes a legal claim to your property to settle a tax debt. There are options if you can't pay the total amount or disagree.
The IRS treats payroll tax liability lapses as a very serious offense and makes it a priority within their enforcement wing to collect these amounts.
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.