Watch Out For Tax Scams



Telephone Tax Refund Abuse:

Encouraged by tax preparers, some individual taxpayers have requested large and apparently improper amounts for the special telephone tax refund. In some cases, taxpayers appear to be requesting a refund of the entire amount of their phone bills, rather than just the three-percent tax on long-distance and bundled service to which they are entitled. The IRS is investigating potential abuses in this area and will take prompt action against taxpayers who claim improper refund amounts and against the return preparers who help them. You may request a refund on your 2006 tax return if you paid long distance telephone excise taxes after February 28, 2003 and before August 1, 2006. For most taxpayers the telephone tax refund will be $30 to $60.

Return Preparer Fraud:

Dishonest tax return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients" refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Choose carefully when hiring a tax preparer. As the saying goes, if it sounds too good to be true, it probably is. No matter who prepares your tax return you are ultimately responsible for its accuracy and for any tax bill that may arise due to a questionable claim.

Because of the great deal of abuse modern technology. The IRS is clamping down on taxpayers and preparers who try to illegitimately claim refunds or falsely claim credits. This has been a growing concern since the introduction of the Earned Income credit. Many people have been prosecuted for claiming children, animals, and relatives under the E.I.C. guidelines fraudulently. Make sure the preparer you use is reputable and not trying to take a deduction/credit illegally. Ultimately it is your responsibility for the content of the return. Their mistake may mean a great deal of trouble for you.

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27 Aug 2008 08:06:04

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