Tuesday, July 19, 2011

Avoiding Tax Scams

The IRS is warning taxpayers that it is seeing an increase in tax related scams. Scammers are targeting people who do not have a filing obligation. They are encouraging these individuals to file in order to claim credits, refunds and credits for which that are not entitled.

At Brycast your tax return is prepared by an Enrolled Agent. Enrolled Agents are federally licensed to represent taxpayers in all tax matters before the IRS.  Enrolled Agents must pass all parts of the Special Enrollment Examinations which cover individual and business tax returns, as well as a representation, practices and procedures. Additionally, they must pass a background check to ensure that they have not engaged in any conduct that would justify the suspension or disbarment of an enrolled agent from practice before the IRS.   

Here is a list of red flags that the IRS says you should watch for:
  • Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.
  • Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS.
  • Unfamiliar for-profit tax services teaming up with local churches.
  • Home-made flyers and brochures implying credits or refunds are available without proof of eligibility.
  • Offers of free money with no documentation required.
  • Promises of refunds for “Low Income – No Documents Tax Returns.”
  • Claims for the expired Economic Recovery Credit Program or Recovery Rebate Credit.
  • Advice on claiming the Earned Income Tax Credit based on exaggerated reports of self-employment income.
Brycast Financial Planning in Austin Texas --- We Can Help
Income Tax Preparation in Austin Texas
contact: (512) 293-4170 service@brycast.com http://www.brycast.com/
Enrolled Agent and Investment Advisor Reprentative

1 comment:

  1. Thank you for sharing this article, it is very easy to understand and informative. Excellent!


    Tax Profesional

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