Common tax scams are a problem for countless people in day-to-day life. There are ten major tax scams that should be paid full attention to in order to avoid them from affecting you as an individual. Many tax systems will have hidden expenses or other misplacements that can leave negative results for the victims of common tax scams. However, by distinguishing what the real scams are, it is possible to completely avoid them.
1. A common tax scam is identity theft and phishing. This is a serious issue and consists of someone stealing your identity and therefore being entitled to your tax refund. This could result to thousands of dollars worth of money being stolen from your rights and this information can be accessed through emails, websites and Spy ware.
2. Filing misleading or false forms is a big problem and one of the common tax scams that affects many people. Fraudsters can gain information from the people around them, including family and friends, to make false claims on their tax returns.
3.Many tax workers have been investigated and have been found to charge unnecessary fees or take a chunk of refunds from clients, which can leave clients greatly out of pocket.
4. Fuel tax credit scams are one of the most notable of the entire list of common tax scams. Usually, farmers are vulnerable to these scams, but very few workers are.
5. Trust can often be misused and it is advised that taxpayers should gain advice from a professional before signing illegitimate trust arrangements.
6. Abusive retirement plans involve the mishandling of funds from retirement, which can result in older people staying in the workplace longer than required.
7. Disguised corporate ownership is very similar to identity theft, but it is on a much more serious level. Some corporations will attempt to prevent their true owner identity from being revealed which can ultimately result in them cutting costs, claiming fictitious deductions or even a serious matter of terrorist financing.
8. The abuse of charitable organizations and deductions are one of the common tax scams that should be focused on. The crazy scale that some people go to can be seen in the abuse of charitable organizations and deductions, such as exaggerating non-cash donations with illegally controlled donated assets.
9. Some frivolous arguments present in the list of common tax scams show writing by the IRS claiming that the filing of tax returns is fully voluntary, when this is not true. It’s important to question the trust of others to protect your safety in situations like this.
10. Social security benefits can be taken advantage of and many people will claim social security benefits that are completely non-taxable. This is one of the many common tax scams that are overlooked.