Posts Tagged ‘irs’
In Accounting & Finances,Business,Taxes on March 2, 2012 by Sufen Wang Tagged: Dirty Dozen, Identity theft, Internal Revenue Service, irs, IRS tax forms, Social Security number, Tax, United States
Another Dirty Dozen: The Top 12 Tax Scams of 2012
As long as there are taxes, there are going to be scams. A lot of money gets moved around in April and a lot of people want to get their hands on it – illegally. If you’re one of those people, you’ll probably be in jail sometime soon. Luckily, the IRS’ “Dirty Dozen” – the list ranking scams taxpayers are most likely to get sucked into – is back. Let’s see how things have changed since we brought you the “Dirty Dozen” last year.
The new leader of the IRS’ “Dirty Dozen” is Identity Theft. This is a growing problem in which somebody uses a real taxpayer’s personal information to file a return and then receives the refund. If that sounds like a good idea to you, just know that the IRS is cracking down on this particular scam with law-enforcement. There’s even a special web page to help taxpayers spot when somebody is pretending to be them. So how do you know if your name is being used elsewhere? If you get an IRS notice telling you that you filed more than one return, you could be a victim of identity theft.
Close behind is Phishing. This does not have to do with going out on a boat and catching things in the water. This is actually when a scammer uses a fake website or email to steal your personal information – which they can then use for the big bad identity theft. Always check that you’re on the real IRS site (the address should contain irs.gov) and since the IRS doesn’t send out any e-mails, don’t open anything that is supposedly from the agency or the Electronic Federal Tax Payment System (EFTPS). Oh, and don’t post your social security number on the “IRS” Facebook page.
Remember that post a few weeks ago about finding the right preparer? It was supposed to help you avoid becoming a victim of scam number three, Return Preparer Fraud. These corrupt preparers will do anything, from stealing part of your return, to charging you outrageous fees. Make sure your preparer includes his/her signature and PTIN on your return, and walk away if they tell you to include false information.
You really can’t get away from Hiding Income Offshore. The number one scam on last year’s “Dirty Dozen” list, evading taxes by storing your assets out of the United States, continues to be a huge problem. That’s not to say that you can’t keep stuff overseas – you just have to tell the IRS about it. If you’ve had a change of heart and want to stop being a scammer, the Offshore Voluntary Disclosure Program is still going on.
The above are the most prevalent issues, but there’s still a lot of scamming going on at the bottom of the list. Don’t pay attention to people offering advice – for a fee – about how to get “Free Money” from the IRS & Tax Scams Involving Social Security. You’ll be paying money for a claim that is eventually going to get rejected by the IRS. And don’t think you can get away with penning in False/Inflated Income and Expenses on your tax return. Although it might seem easy to claim income or expenses you didn’t really pay, so that you can receive refunds like the EITC, you’ll face interest and penalties when you do get caught.
The same goes for False Form 1099 Refund Claims. Filing a fake information return to verify a fake refund claim will result in real problems for you. And don’t listen to Frivolous Arguments about why you don’t need to pay taxes. Pay first, and then if you have a problem, bring it up in court later. You also need to pay the correct amount that you owe, so don’t Falsely Claim Zero Wages.
Perhaps the dirtiest scam on the Dirty Dozen is Abuse of Charitable Organizations and Deductions. Yes, people will do things like “improperly shield income or assets from taxation” and “maintain control over donated assets.” Charities are for you to help other people – not yourself. The penultimate scam, Disguised Corporate Ownership, is when the true ownership of a business is obscured. Last but not least is Misuse of Trusts. Promoters will convince taxpayers to transfer their assets into trusts, promising less income subject to taxation or reduced estate taxes. In reality, this is just a fancy way of avoiding tax liability.
The IRS is watching you.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on February 23, 2012 by Sufen Wang Tagged: First-Time Homebuyer Credit, First-Time Homebuyer Credit Account, Internal Revenue Service, irs, IRS Form 5405, IRS tax forms, Social Security number, Tax
The IRS is reminding individuals who received the First Time Homebuyer Credit not to wait for a repayment reminder in the mail. All account information has officially gone digital. Recipients of this credit must now go online to check their total credit and repayment amounts.
How do you know if you should log on to the First Time Homebuyer Credit Account Look-Up page? Well, you must have received a First Time Homebuyer Credit! The credit was introduced in 2008 at a maximum $7,500 – with the footnote that all of the money had to be paid back over 15 years. However, 2010 first time buyers got an even better deal: their credit doesn’t need to be repaid unless the house is sold within three years.
If the credit applies to you, you’ll want to log on for tax reference purposes. Make sure you have your current information ready, including your SSN, date of birth, and street address. The IRS site is secure and encrypted, so you don’t have to worry about your info ending up in the wrong hands. Once you’re in, you’ll be able to see your original credit amount, what you’ve paid back so far, what you still owe, and the amount of each annual repayment.
Now for the hard part. To actually repay your First Time Homebuyer Credit, just add the amount that you are told to repay to the other taxes that you owe on your return. Then use line 59b on Form 1040 to report repayment of the credit. You only need to attach Form 5405, First Time Homebuyer Credit and Repayment of the Credit, if you are repaying because the house is no longer your main home. You can access the First-Time Homebuyer Credit Account Look-Up tool all day, everyday, so there’s no excuse for not knowing how much you owe!
Summary of the First-Time Homebuyer Credit by Year
2008: up to $7,500, the credit is paid back over 15 years.
Jan – Nov 2009: up to $8,000, the credit does not need to be paid back.
Dec 2009 – April 2010: up to $8,000 for first-time buyers, the credit does not need to be paid back.
Nov 7, 2009 – April 2010: up to $6,500 for “long-term residents” buying a new home, the credit does not need to be paid back.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on February 17, 2012 by Sufen Wang Tagged: Alternative Minimum Tax, Earned Income Tax Credit, Filing Status (federal income tax), Internal Revenue Service, irs, Tax, Tax credit, Tax preparation
When and Why You Should File
Tax season is in full bloom with preparer commercials flooding the air waves and “Tax Filing This Way” signs being waved on every corner. The good news is that some of you out there won’t need to go through the hassle of filing this year. The bad news is that if you don’t file a return, you’ll have no chance of receiving certain tax credits.
As a U.S. Citizen or Resident Alien, you only have to file if you made a certain amount of money in 2011, and that amount varies based on your age, your filing status, and the type of income you received. Let’s say you were under 65 years old at the end of 2011, single, and made over $9,500 last year. You earned more than the minimum gross income, so you must file a return. However, if you are under 65, married, and want to file jointly with your spouse, you need to do so only if your gross income was at least $19,000. The IRS provides a handy-dandy chart with explanations for you to decide which categories apply to you.
Of course, there are all sorts of different situations that complicate these rules. Maybe you were self-employed and you made $800 last year. It might seem like a small amount, but if you earn over $400 working for yourself, you must submit a return. Or perhaps you owe certain special taxes, such as the Alternative Minimum Tax, or Recapture Taxes – once again, you’re going to be filling out a return in the next few months.
These are some reasons why you’re required to file, but even if none of them apply to you, you could still benefit from sending in a return. It’s the only way you can get a refund on that federal tax your employer withheld from your paycheck, or that overpayment you made on your 2010 taxes. There’s also the Earned Income Tax Credit, which is a refundable tax credit for people who worked, but barely made any money.
Sometimes kids are a good thing, especially when it comes to taxes. Maybe you decided to adopt last year and need help with all of the fees you paid during the process. You might be eligible for the Adoption Credit, a refundable tax credit for those adoption expenses. If your son or daughter (or both) attends college, you can offset the cost of their tuition with the American Opportunity Credit. Each student is eligible for a maximum $2,500 and 40% of the credit is refundable. It doesn’t take a math major to realize you should file a return even if you owe no taxes: you can still receive as much as $1,000 cash back for each student. So think twice before you set aside your financial records for next year – you might be missing out on the money you deserve.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on February 10, 2012 by Sufen Wang Tagged: Best Buy, Capital asset, Capital gains tax, Income tax, Internal Revenue Service, irs, Republicans, Tax
Capital Gains Tax this, Capital Gains Tax that…
We have been hearing this phrase a lot in the presidential debates. But what are those politicians actually arguing about? Don’t shake your head and say “Just another tax I have to pay.” Understanding how the Capital Gains Tax works and what’s at stake will benefit you and your finances in the long run.
That nice fridge you just bought from Best Buy is no ordinary refrigerator: it’s also something called a capital asset. The same term applies to your car, your house – even your secret Disney figurine collection. The IRS sums it up pretty well with the explanation that “almost everything you own and use for personal or investment purposes is a capital asset.”
Don’t panic yet hoarders. You can own as much stuff as you want without paying a cent of Capital Gains Tax on it. The problem starts when you sell any of that stuff and make more dough than you originally paid for it. For example, you might have purchased a rare book at a garage sale for $5 and you end up selling it for $6,000. Nice job on your $5,995 profit, but the IRS is going to want a piece of the pie too.
How much the IRS gets from you depends, in part, upon how long it takes you to sell the asset. A short-term gain is when you sell something for a profit less than a year after its original purchase. Therefore, a long-term gain is when you keep something for at least a year before you sell it. And then, for those people who are really patient, the super-long-term gain is when an asset is held for over five years after the original purchase.
You’re currently better off making long-term investments. For short-term investments, you get charged at the same rate as your income tax – so those in the highest income category get hit hard if they take the fast lane. However, everyone pays a flat rate of 15% for long-term capital gains (except individuals in the 15% income tax range and below, who are now paying 0%). The rates also vary depending on the nature of the asset. Sorry, but everyone is stuck at a 28% long-term rate for collectibles, so you might want to save those figurines for your kids. You can’t avoid paying taxes when you profit from your assets, but the rates aren’t set in stone, so pay attention to what politicians are proposing.
On the Money,Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on February 1, 2012 by Sufen Wang Tagged: Address (geography), Cheque, InternalRevenueService, irs, IRS e-file, Tax, tax refund, Tax returns
IRS Seeks to Return Undelivered Refund Checks…
Are you missing your refund? Don’t miss out on your missing money….
The IRS is doing a little year-end cleaning and they want to get rid of your money. Almost 100,000 taxpayers didn’t receive their tax refunds last year due to simple mailing address errors. That means over $153.3 million, or about $1,547 per check, in refund checks had to be sent back to the IRS offices because of scribbled, incorrect, or just plain missing addresses – and are just waiting to be returned.
So if you’re one of those people still asking “Where’s my refund?”, you might find the “Where’s My Refund?” tool on IRS.gov very useful (or call 1-800-829-1954). You can check the status of that mysteriously absent check and find instructions on how to resolve any delivery problems. These are the only ways to find out about your pending refund, so don’t be fooled by e-mails that look like they are sent by the IRS. Those messages are phishing scams and your computer will be grateful if you don’t open the attachments or click on any suspicious links.
A word of advice on future filings, you really should just choose direct deposit when you file your return and completely avoid the hassle of lost, stolen, and undelivered checks. You can receive the tax refund directly into your bank account, divvy it up between two or three financial accounts, or even buy a savings bond! You might as well go digital all the way and file your tax return electronically, so that you don’t have to go all the way to the post office. The IRS also recommends e-file because it eliminates the risk of lost paper returns, reduces errors on tax returns, and speeds up refunds. This is particularly useful for taxpayers who can’t even read their own handwriting; well, maybe they can, while the IRS Revenue Agent has to guess what those numbers really are on their returns.
The IRS knows best when it comes to tax returns, so listen to its recommendation and use e-file and direct deposit to avoid future delivery problems. You can also literally listen to the IRS’ Undeliverable Refund Podcast for more information or check out the agency’s Undeliverable Refund Video.
On the Money
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on January 9, 2012 by Sufen Wang Tagged: Internal Revenue Service, irs, IRS e-file, IRS tax forms, Tax, Tax preparation, tax return
Good-Bye Paper Returns, The IRS Makes Its Digital Move
The IRS is doing everything it can to ensure e-filing remains alive and well. In 2011, paid preparers who expected to file 100 or more individual income tax returns during the calendar year were required to file electronically. However, the new year means new requirements. As of January 1, 2012, paid preparers who expect to file just 11 or more individual, estate, or trust returns must file electronically.
Members of a firm will also have to play by these revamped rules. The e-file requirement applies if the firm’s members in the aggregate expect to file 11 or more covered returns in 2012. Basically, if your firm is doing any business at all, you’re probably going to be e-filing.
Indeed, almost every tax return counts when you’re checking for that magic number 11. The regulation covers income tax returns in the Form 1040 and Form 1041 series, and Form 990-T, the Exempt Organization Business Income Tax Return. However, forms such as 1040-NR and 1040X are considered automatic administrative exemptions because they still have to be mailed to the IRS the old-fashioned way, and so you shouldn’t include them in your estimate.
Remember that it’s ultimately up to the taxpayer to decide how he wants to submit his tax return. Psssst, heads-up, keep in mind that most of your client(s) usually do not know what they want; specifically how they want their tax returns to be filed… So, make sure you give sound advice to your clients in this regards. However, for those clients who really do not want to go digital, because of the new regulations, you’ll need to acquire a written statement from the taxpayers on or before the date the return is filed. It must be signed and dated (a joint return need only be signed by one spouse) and should state that the taxpayer chooses to file the return in paper format and will be submitting it to the IRS –rather than the preparer. This way, the individual income tax return will not be treated as filed by you, the tax return preparer, and thus will not be included in your return tally.
It’s important that you don’t send this statement to the IRS or attach it to your client’s tax return – that’s the taxpayer’s responsibility; well, good luck with that… hoping that your client will do what he is supposed to do… So, instead, make sure you do your part by attaching Form 8948, Preparer Explanation for Not Filing Electronically, to your client’s paper return and check box 1. You also need to include your PTIN on each tax return where requested. If your client does choose not to e-file, it’s important that he personally mails his return. The IRS is making it clear this year that once a taxpayer chooses not to e-file, it’s hands-off the paperwork for the tax preparer.
Hopefully you’re already an authorized e-file provider because that’s the only way you’re allowed to e-file with the IRS. If not, you might want to click on the following link and start applying for your Electronic Filing Identification Number – it takes at least 45 days for the authorization process. Otherwise you’re going to have a lot of clients filing complaints against their unprepared tax preparer.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Education,Taxes on November 21, 2011 by Sufen Wang Tagged: accounting, business, Education, Internal Revenue Service, irs, Small business, Tax, United States
Get Schooled by the IRS for Free
Wall Street isn’t the only place that’s been occupied lately. Proposed tuition increases have caused students on college campuses across the U.S. to stand up and say “NO” to raising the cost of higher education. If attending a university will break your bank, the IRS has a solution: the agency offers a variety of excellent educational training and learning tools for small businesses for FREE……
Those of you who consider yourselves tax pros should check out IRS Live. A real-time webinar, IRS Live is a panel discussion among IRS experts and industry professionals aimed at educating tax professionals on current and complex tax issues affecting them and their clients. You can actually earn Continuing Professional Education credits for participating in the webinar! IRS Live is broadcast bimonthly and the next program airs on Dec. 14.
For small business owners who are too busy to hit the books can boost their knowledge by visiting the Small Business/Self-Employed Virtual Small Business Tax Workshop. The curriculum caters to new owners and features lessons about how to set up and run your business so paying taxes isn’t a hassle, what you need to know about Federal Taxes and your new business, and much more. The best part is that you can go to recess whenever you get tired of listening to the teacher talk about retirement plans and tax obligations.
While you’re on the computer, you should print the handy-dandy 2012 tax calendar for small businesses and the self-employed, or set it as your desktop wallpaper. It reminds you about everything from the exact days you should deposit your payroll tax, to what forms you need to file and when. Or, if you’re an avid reader and don’t want to get too lost in that novel, just order a tax information bookmark – or even 100 if you want one for every book! You can go shopping for other business products here, and remember, everything is always free from the IRS.
Brochures are nice, but could you spot a tax scammer walking down the street? The IRS even provides tools to help identify, avoid, and report different types of scams. Still can’t get enough? Whether you’re a teacher looking to freshen up those old lesson plans or just somebody who wants to become more proficient in the business world, Understanding Taxes is a gold mine of educational resources. It provides detailed lesson plans, interactive activities, simulations, and answers for the hows and whys of taxes. The only thing the IRS doesn’t give you is an apple for the teacher.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Taxes on November 6, 2011 by Sufen Wang Tagged: Audit, Budget, Douglas Shulman, Internal Revenue Service, irs, Senate, Tax
Speaking up for the IRS….
Although taxpayers send their returns and payments to the IRS, the agency isn’t exactly rolling in the dough. Yes, the IRS has a budget and, what’s more, it’s in danger of being reduced. Don’t jump for joy yet; less money for the IRS could mean more problems for taxpayers in the near future.
IRS Commissioner Douglas Shulman broke down the implications of a broke IRS in a letter he recently sent to key lawmakers. The IRS budget last year was $12.1 billion: a current House approbation bill wants to cut $650 million from core IRS accounts and a Senate bill proposes a $525 million cut. Shulman stated outright that “These budget cuts will result in a direct increase to the nation’s deficit.”
But how could a decrease in government spending increase the deficit? For starters, “The IRS is unique in that it has a positive return on investment…collecting on average $2.5 trillion per year.” In other words, the IRS is a profit-center not a cost-center. Your tax dollars don’t just magically arrive at the U.S. treasury; there are real people right now who are working to ensure that everyone pays on time. In fact, 92% of the IRS’ enforcement budget is spent on labor and the proposed cuts would reduce staffing, leading to a 5-8 percent decrease in “collection actions taken to recover known unpaid taxes” and consequently, a loss of “$4 billion in revenue annually.”
Closer to home, customer service for taxpayers would also become greatly limited. This means more grey hairs for your practitioners (tax preparers, accountants and CPAs) who are trying to file accurate and timely tax returns. Right now, the normal waiting time for a phone inquiry is between 30 to 45 minutes. Sometimes it’s even difficult to receive an acknowledgement from the IRS that your response to an audit letter has been received. If you think that’s bad, be prepared to never get through to an IRS representative on perpetually-clogged phone lines and to wait five months for a response to your letters. (For tips on how to survive an audit, you can look forward to my e-book: How to Survive an Audit and Other Business Nightmares).
That’s not all folks. Shulman also said the cuts could impact a range of critical, but currently unfunded activities, such as fighting identity theft, cracking down on offshore tax evasion, and processing thousands of offshore asset disclosures. Indeed, the Commissioner said the reductions are serious enough that the IRS will start cutting its spending right away – waiting for enactment would not leave enough time to make the changes needed to adapt.
Here’s the bottom line: as long as the Internal Revenue Code continues to be treated as a social services delivery mechanism by Congress (first-time homebuyer credits, upcoming health care benefits, small business new worker credits, energy efficient equipment credits, etc.), any cuts in the IRS budget are likely to make the work of the tax practitioner more difficult at the same time that practitioner penalties are being increased. The heavy cuts proposed for the current IRS budget will end up costing every taxpayer time and money.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on October 30, 2011 by Sufen Wang Tagged: Death, Executor, Internal Revenue Service, irs, Nov. 15 2011, Tax, Tax return (United States), United States
Think Taxes Will Be the Death of You?…. Well, Death Isn’t the End of Taxes…
Having trouble resting in peace? Do you feel that something is gravely wrong? Concerned about skeletons in your closet? You could be suffering from more than just Halloween fever – you might be haunted by the fact that you need to file that “LAST” tax return after your death!
Yes, you read that right: death does not excuse a final accounting with the IRS. Death and taxes may be equally inevitable, but the taxman demands the last word, and the return is due by April 15 of the year following the taxpayer’s death. The estate tax return for a decedent who died after Dec. 16, 2010 is due nine months after the date of the decedent’s death.
However, if you died between Dec. 31, 2009 and Dec. 17, 2010, you’re in luck! The IRS decided to automatically grant filing extensions, as long as the executor timely files Form 4768. That means no late filing and payment penalties on estates of decedents who submit Form 706 or 706-NA and pay the estate tax by March 19, 2012.
The IRS is offering another treat this Halloween season! The due date for Basis Form 8939 – an information return used to report information about property acquired from a decedent and to allocate basis increase to certain property acquired from a decedent. – has been changed from Nov. 15, 2011 to Jan. 17, 2012. The IRS will not issue another extension and an executor may only file an amended Form 8939 by July 17, 2012 if the provisions of § 301.9100-2(b) are satisfied.
The IRS has one more trick in its bag. Notice 2011-76 also provides penalty relief for certain beneficiaries of estates on their 2010 federal income tax returns. Usually the property recipient will be penalized if they don’t pay taxes on what they received – unless their neglect is due to a reasonable cause. Now, the IRS will presume that the recipient’s failure to pay was due to a reasonable cause; the recipient just needs to write “IRS Notice 2011-76” across the top of their amended return.
By the way, one last word, you really should “supervise” your executor to ensure that he/she files the extension on time and avoids any penalties. Not that it matters, since you personally do not have to worry about paying the extra dough!
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on October 23, 2011 by Sufen Wang Tagged: Circular 230, Internal Revenue Service, irs, Preparer Tax Identification Number, PTIN, Tax, Tax preparation, Tax returns
The IRS says Nobody Can Claim the Name – Just Yet
Think you have what it takes to be called a Registered Tax Return Preparer (RTRP)? At the moment, nobody does! In case you missed it, the IRS issued a reminder that NO ONE can currently claim to be a “Registered Tax Return Preparer,” even if they have a provisional preparer tax identification number (PTIN).
Cutting corners (and words) by calling yourself a “Registered Return Preparer” or “Registered Tax Preparer” isn’t going to cut it either. In order to become an official RTRP, an individual must have a valid PTIN, complete 15 units of continuing education, pass the IRS competency examination, and also pass the tax compliance and suitability checks. Sounds simple enough – except for the fact that the examination is not yet available and the IRS is still developing the suitability check!
Although the IRS released the specifications for the exam, the agency hasn’t stated when the test and the check will be up and running. Since NOBODY can satisfy all four of the RTRP requirements, at this point, NOBODY may designate her/himself as a registered tax return preparer. That means EAs, CPAs, and other individuals exempt from taking the IRS competency examination and the 15 education units shouldn’t print “Registered Tax Return Preparer” on their business cards either.
Don’t turn a blind eye to these IRS requirements– especially since all 730,000 PTIN holders are subject to the advertising and solicitation rules under section 10.30 of Circular 230. Advertising yourself as an RTRP when you really aren’t registered could result in a trip to the Office of Professional Responsibility, a monetary penalty, and even a disqualification from the practice. Now stop reading and go study and get ready for the IRS upcoming competency exam!
So, folks, don’t get fool by titles or advertised names, check out your tax preparer’s credential before you acquire the services.
On the Money,
Sufen Wang
Wang Solutions
Another Dirty Dozen: The Top 12 Tax Scams of 2012
The new leader of the IRS’ “Dirty Dozen” is Identity Theft. This is a growing problem in which somebody uses a real taxpayer’s personal information to file a return and then receives the refund. If that sounds like a good idea to you, just know that the IRS is cracking down on this particular scam with law-enforcement. There’s even a special web page to help taxpayers spot when somebody is pretending to be them. So how do you know if your name is being used elsewhere? If you get an IRS notice telling you that you filed more than one return, you could be a victim of identity theft.
Close behind is Phishing. This does not have to do with going out on a boat and catching things in the water. This is actually when a scammer uses a fake website or email to steal your personal information – which they can then use for the big bad identity theft. Always check that you’re on the real IRS site (the address should contain irs.gov) and since the IRS doesn’t send out any e-mails, don’t open anything that is supposedly from the agency or the Electronic Federal Tax Payment System (EFTPS). Oh, and don’t post your social security number on the “IRS” Facebook page.
The above are the most prevalent issues, but there’s still a lot of scamming going on at the bottom of the list. Don’t pay attention to people offering advice – for a fee – about how to get “Free Money” from the IRS & Tax Scams Involving Social Security. You’ll be paying money for a claim that is eventually going to get rejected by the IRS. And don’t think you can get away with penning in False/Inflated Income and Expenses on your tax return. Although it might seem easy to claim income or expenses you didn’t really pay, so that you can receive refunds like the EITC, you’ll face interest and penalties when you do get caught.
Perhaps the dirtiest scam on the Dirty Dozen is Abuse of Charitable Organizations and Deductions. Yes, people will do things like “improperly shield income or assets from taxation” and “maintain control over donated assets.” Charities are for you to help other people – not yourself. The penultimate scam, Disguised Corporate Ownership, is when the true ownership of a business is obscured. Last but not least is Misuse of Trusts. Promoters will convince taxpayers to transfer their assets into trusts, promising less income subject to taxation or reduced estate taxes. In reality, this is just a fancy way of avoiding tax liability.
Wang Solutions 