| Tax-Definition.org ( is reporting on the | | | | tax exemption to the to religious leaders, |
| second part of the tax scam alert from the | | | | thereby separating them from the ownership of |
| Internal Revenue Service (IRS): Manipulation | | | | church and other assets, legally. The tax |
| of Tax Codes and Laws in Tax Scams. | | | | agencies ask people to use this statute to |
| | | | escape taxes, other debts, and child support. |
| With the IRS bringing out its annual listings | | | | |
| for the numerous tax scams that are taking | | | | Increasing offshore transactions: Most of the |
| place, the debate on the misuse of tax laws | | | | people are advised to hide their income in |
| has become hotter. The "Dirty Dozen" looks at | | | | offshore banks and accounts by the tax |
| different kinds of tax scams that have taken | | | | agencies. Such people tend to use offshore |
| place in a year, to keep the people of United | | | | credit cards, life insurance, leasing |
| States aware of the fraud agencies and their | | | | schemes, wire transfers, and foreign trusts |
| owners who move around in the guise of tax | | | | to evade paying huge taxes. The IRS and other |
| professionals. | | | | U.S. agencies are on a look out for such |
| | | | people who approve of and promote such |
| The modus operandi of the so-called tax | | | | illegal transactions. |
| agencies and tax counselors is to manipulate | | | | |
| the established rules and laws in order to | | | | Cases of Identity thefts: The IRS has |
| get tax reduction. They catch hold of people | | | | received information about some identity |
| who are most prone to falling for their false | | | | thefts where impostors have stolen valuable |
| claims. Following the tax-deduction | | | | information from people guising themselves as |
| techniques given by them can land you in | | | | officers from the IRS. The stolen data has |
| prison. The IRS keeps a strict tab on the | | | | then been used for credit card and loan |
| numerous agencies and takes legal action | | | | application. Some people have also received |
| against the fraudulent ones. | | | | fictitious correspondence from different |
| | | | agencies posing as the IRS. People tend to |
| The different clauses and doctrines that are | | | | disclose very important information to them |
| twisted and used for getting tax reduction | | | | like their social security and checking |
| are: | | | | account numbers, and many other things. |
| | | | |
| Evasion of employment tax: There are times | | | | Deductions for charitable institutions: |
| when the tax agencies instruct the tax filers | | | | Different charitable institutions and |
| not to withhold the employment taxes from | | | | non-profit organizations have the benefit of |
| their wages. This is a wrong interpretation | | | | tax deductions. The tax agencies advise their |
| of the Section 861. Following anything like | | | | customers to transfer all their assets and |
| this can lead to criminal convictions and | | | | other properties to any such institution, on |
| injunctions. Penalties and extra taxes can be | | | | paper. The person still maintains actual |
| charged from the people found guilty by the | | | | control or hold of that property. This helps |
| IRS. | | | | the individual to get tax exemption and other |
| | | | deductions. IRS discourages such practices |
| Corporation sole: There are many people, who | | | | and takes legal action against the guilty. |
| apply for incorporation by claiming to be a | | | | |
| part of some religious organization, or other | | | | The best thing to do is to avoid getting |
| phony institution in the hope that they may | | | | duped by fraud tax agencies, and contacting |
| be exempted from federal income tax. The | | | | the IRS directly for any sort of information, |
| corporation sole statute gives the benefit of | | | | or clarification. |