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Article Title: How To Catch On To The 7 Most Common Tax Scams
Author: Huey Harden
Category: Taxes, Finance
Word Count: 776
Keywords: income tax, income tax return, tax scam, tax scammer, how to avoid 
tax scams, how to spot tax scams
Author's Email Address: [email protected]
Article Source: http://www.distributeyourarticles.com
------------------ ARTICLE START ------------------

If you have experienced being contacted by someone who claims to know the easy 
and quick way to reduce your taxes by a wide margin? Or, have your ever 
received an email from the Internal Revenue Service asking for your social 
security number or credit card information?

If you say yes, you’ve probably had a close encounter or have been victimized 
by a tax scammer.

Here's some pointers on the 7 most common tax scams to help you become wiser 
and avoid becoming a victim.

Illegitimate IRS or Government Web Sites

Be sure you got the right federal website. The official site of the Internal 
Revenue Service is  http://www.irs.gov/. Be warned, there are untold thousands 
of fake sites out there, and all of them are after your precious identity.

What’s easy to spot are the amateur ones, but they can still cause a problem. 
While some other more sophisticated sites may be hard to  tell apart from the 
real site because they use and update the site with actual content stolen from 
the real IRS Web site.

E-mail Solicitations

E-mail solicitation scams are in a similar category. An e-mail scam MO is to 
try to get you to click on a link and trick you into giving your personal 
information to a bogus IRS site or another phishing site that will ask for 
personal information.

Some email solicitations may even have attachments which, if opened, can run a 
script which will give hackers a backdoor access to your personal information 
on your computer. Take note that the IRS does not start their contact with you 
by e-mail, so if you receive an e-mail that appears to be from the IRS, you can 
assume it's a scam and delete it outright.

If you really want to make sure, delete the file without opening it and call 
the IRS for a follow up.

Fake Online Tax Forms or Attachments

In a devious move, one complex tax scam uncovered by the IRS involved getting 
people to fill a tax form coming from what was claimed to be a legitimate 
organization representing the Internal Revenue Service.

The scam would complete once you fill the form for detailed personal financial 
information such as  bank account numbers and credit card numbers, for the 
purpose of getting a discount tax deduction.

Just because this particular scam was uncovered doesn't mean that a similar one 
won't appear in your inbox or mailbox in the future, so be on the alert for any 
e-mail that requests person information.

Tax Dispute Scams

A reverse of the online tax scam is the is the attractive idea that you don't 
have to pay income taxes, because paying taxes and/or filing a return is a 
"voluntary" action.

This is dangerous and ruinous to you. If you are charged, not only will you 
have to pay back taxes, interest and penalties, but you will also be charged a 
$5,000 penalty fine as outlined in IRS Notice 2008-14 for filing a "frivolous 
tax return" or failing to file based on a "frivolous position".

The only thing that’s "voluntary" in the tax code is the fact that it is up 
to individual citizens to calculate their own tax liability, and for 
individuals themselves to make arrangements to their finances in such a way as 
to legally minimize their tax liability. In a nutshell, the IRS does not 
periodically send out bills every April telling people how much they owe. But 
that would be nice.

Tax Fixers

Some tax scammers claim they can give you from zero or an extremely low tax 
liability, and then take your money by charging high service fees by skimming 
money from your return. These scams may come as amateurish, but some come 
looking slick and professional as your certified public accountant.

Legitimate ads might simply state that the company or person is available to 
prepare your tax return.

Again, keep in mind that you are ultimately responsible for what is on your tax 
return no matter who prepares it for you. If your name is on it, make sure you 
keep your name clean.

Tax Debt Settlement Schemes

When people owe the IRS large sums of money, people get desperate. And its this 
desperation this form of scammer targets. These tax scammers claim that they 
can settle these debts for pennies on the dollar.

The best these scammers can only prepare is an offer in compromise (OIC) on 
your behalf. Just in case you don’t know, an OIC is a proposal to settle all 
taxes a heavily indebted taxpayer can submit to the IRS, which is rejected 75% 
of the time.

Take note that an OIC is mostly accepted in cases of extreme financial 
hardship, and if you can afford to pay a go-between to submit an OIC for you, 
it’s not a sign of extreme financial hardship.

Huey Harden is your typical guy from Maine who's fired up and well on his way 
to developing multiple income streams online.

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