Senior America's Information Magazine

 

Tax Fraud

Conman tricks to get you to cheat the IRS at tax time

Most people think of tax fraud as something that only involves the person or company filing the tax documents.  There are however, conmen that attempt to engage the poor, indigent, and seniors to commit fraud against both federal and state tax departments.  It sounds like easy money and it probably is, unless you get caught.

The tax fraud approach

The tax conman generally approaches individuals that they know are in a tough financial position, though there are some that pose as legitimate financial planners or debt consultants.  A few make no bones about the fact that what they are doing is illegal.  Others claim total compliance with federal and state laws, claiming that there are loopholes which allow their activity.  

Their prospective victims are often willing to believe that everything is on the up and up because they need the cash, and again, the guy that is explaining the deal sounds legitimate.

The tax fraud con

The conman creates legal corporations and then sends W-2 forms to the people he has recruited. The W-2 form indicates that the corporation has deducted thousands from their paychecks. (Of course there never were any paychecks, therefore, no deductions.)  He may even help the recruits file the tax forms to get the money back from the IRS and the stateís department of revenue office. 

The rub

Though the corporation hasnít paid the taxes to the government, the government considers that an issue between themselves and the company, and pays the full tax refund to the filer.  The filer then splits the tax refund with the conman and the conman disappears.  The government canít find him and when the IRS investigates the situation, the only person they can find is the filer who has knowingly filed a fraudulent tax return.  Guess who gets arrested!

If someone tells you that they can get you a tax refund that is more than youíve paid in,  contact a tax expert.  If someone sends you a W-2 or any other statement about or from a job that you never held, get in touch with the IRS immediately.  Contact information can be found at http://www.irs.gov.  Interestingly enough, the IRS occasionally pays rewards for such information and you may come out ahead anyway.

Disclaimer:  These pages are created to inform and educate the public only.  They are not and should not be considered legal opinions or advice.  You do not and cannot have any client-attorney relationship with SeniorMag or any of its employees.  You should not act upon legal advice found on SeniorMag and are advised to seek professional counsel before taking any action based upon information found on this site. 

 

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