Last time, we introduced you to some IRS tax problems called the IRS Dirty Dozen list. This is an annual collection of DON’Ts to consider when you, or a tax pro, is filing your IRS tax return. We discussed two of the biggest tax problems on the list, falsifying income and using fake forms. And we warned you that, no matter who dreamed up the scheme, YOU are ultimately responsible when the IRS discovers the problem.
Today, let’s look at some of the other IRS tax problems on the list.
- Fake Charities: The main culprit here are charities that use names that sound similar to names you know and trust. They prey on your generosity, taking money from you AND the legitimate charities. Avoid IRS tax problems by using the internet to thoroughly investigate every charity you support! Also, the IRS has a helpful list to identify the known offenders.
- Inflated Refund Claims: Red flags should pop up whenever: a tax preparer “promises” or “guarantees” you a bigger tax refund before they even take a look at your records. Be wary when a tax preparer bases their fees on a percentage of your tax refund. Be suspicious when a tax preparer asks you to sign a blank return before they get started.
- Frivolous Tax Arguments: These days, people are full of passionate opinions about the way our government conducts business. One way to invite IRS tax problems? Use your tax return as a forum for protest to avoid tax responsibility. Know that the IRS has heard every argument, and penalties are high. Check out this IRS rundown of frivolous tax arguments.
- Falsely Padding Deductions on Returns: In the midst of a tax panic, Homer Simpson once declared that “Lisa is now a clergyman, Maggie is seven people and Bart was wounded in Vietnam.” Avoid IRS tax problems – don’t be like Homer! Also, check out these IRS FAQs on proper Earned Income Tax Credits and child tax credits.
IRS Tax Problems? Contact IRS Away!
It bears repeating: whether you have you committed tax fraud knowingly, or an unscrupulous tax preparer led you astray, YOU are ultimately responsible. The time to address your IRS tax problems is NOW. But you don’t have to go it alone. The IRS Away team offers you the peace of mind knowing that your tax problems are being dealt with effectively and professionally. Contact tax attorney Joseph M. Arndt III at (803) 771-4037 for a free consultation.