Miller Helms & Folk


Tip of the Month for October 2002

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Beware of these Tax Scams... They are Tricks not Treats

Knock! Knock! - It's the IRS, Coming to Collect!

Word of warning: take special caution of whom you let in your home. Photo IDs are carried by IRS special agents and field agents. And in most legitimate cases, you will be contacted prior to a visit. Beware of any unauthorized person without an ID who claims to be asking questions about your tax information.

Paying Tax is Voluntary!

Ads claiming that paying your taxes is actually only voluntary are definitely a scam. The going rate to participate in these "untax" packages is around $50.

Bogus Deduction for Individuals!

Tax scammers may try to sell you on this one: Buy a coin-operated telephone and be able to claim a $5,000 Disabled Access Credit on your tax return due to the phones having volume control. The truth: This is a real credit but it only applies to businesses installing the machines to coincide with the American with Disabilities Act.

For All Home-Based Businesses!

While it is certainly true that there are tax-saving deductions if you conduct a legitimate home-based business, don't fall for things that sound too good to be true - such as trying to make all personal expenses tax deductible. It is made clear in tax laws that there must be a business purpose and profit motive prior to business expenses being claimed.

E-Audit Potential Scam!

This is somewhat of an urban legend but better safe than sorry. In this particular scheme, taxpayers receive emails from non-IRS sources that they are under audit and must complete specified paperwork within 48 hours or else. The email mentions an e-audit and references IRS Form 1040. Personal information like Social Security Numbers and bank account numbers are asked for. Just to set the record straight, the IRS does not do e-audits.

Don't let yourself get caught in the tax scam game.

These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact their CPA regarding the topics in these articles.

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