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How Can You Report Suspected Tax Fraud Activity

How Can You Report Suspected Tax Fraud Activity

By on May 5, 2016 in Tax Problems | 0 comments

How Can You Report Suspected Tax Fraud ActivityIf you feel that you have been a victim of a tax scam, the one thing you absolutely don’t want to do ignore it, especially if you have entrusted your personal information to a person or service that you believe to be false.  

The consequences of fines and imprisonment can be the ultimate punishment for anyone involved in a tax scam, so the best way to combat such actions is to report them. Reporting a tax scam doesn’t mean that you’ll get in trouble. If you’re aware of a tax scam, it is your duty as a United States citizen to report such misconduct.

Types of Common Tax Schemes

Anti-Tax Law

This type of tax offense can be done by doing nothing at all! The Anti-Tax law is for those who have neglected their tax-filing obligation. Whether the reason for not filing is due to the inability to pay or just outright neglect, the Internal Revenue Service (IRS) has made strides to ensure that the tax filing process is easy for anyone to complete.

The IRS takes serious offense against taxpayers who don’t follow through on their annual tax filing because according to the IRS website, it poses “a serious threat to [the] tax administration and the American economy” and hinders the United States government’s ability to “administer the tax laws fairly and effectively.” As a result, anyone who neglects to file his or her annual taxes, or even submits them after the due date must pay a fee.

Home-Based Business

Anyone operating a business from home is eligible for a home office deduction. Unfortunately, people are taking advantage of this deduction unlawfully. This too is a serious offense and not taken lightly by the IRS that can have serious ramifications.

Trust

This is one of those tax schemes that can become quite complicated. The IRS says that in the way of a foreign trust tax scheme is set up to “give the appearance that the taxpayer has turned his/her business and assets over to a trust that is no longer in control of the business or its assets.” This leaves a confusing paper trail that brings a red flag to the IRS’ attention that gives them reason to audit.

Off-Shore Schemes

There are a handful of companies and corporations that try to avoid paying taxes on their annual gross income by hiding their finances in off shore accounts. The misconception here is that if these businesses hide the bulk of their earnings outside of the United States, they won’t have to pay taxes on it.

The IRS eventually finds out about these accounts because businesses need to account for all of their income, and if it doesn’t add up with the amount reported to them, they will issue an audit letter and comb through all of the accounts for that business that can go as far back as 3 – 7 years, possibly even more.

Success Tax Relief: Helping You Out of Trouble

If you have fallen victim to any of these tax crimes, you’re obligated to report it to the IRS. However, with the IRS, there are certain forms you need to fill out to make the complaint legit. Like filing annual taxes, this can sometimes be intimidating and difficult to follow through with. That’s why the professionals at Success Tax Relief, a tax relief firm that specializes in relieving tax debt, can help you. Call us today at 877-825-1179 or online for a consultation.

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