Like everything else in the world, taxes are also prone to scam, and many taxpayers have fallen victim to tax scammers.
IRS scams come in different shapes.
Some promise you large tax refunds, while others offer illegal ways to un-tax yourself.
These scammers pose as tax preparers, and they earn their money by skimming their clients?refunds and/or charging scandalously large fees for preparing tax returns.
But then there are other forms of tax scams.
Identity Theft The worst tax scammers do not do anything tax-related at all.
Instead, they have you reveal your personal and credit card information.
They even go to the extent of applying for a loan in your name.
Some IRS tax scammers even pose as the IRS itself.
The IRS warns against tax scammers making telephone and email rounds that use the stimulus payments as bait.
You should know that the IRS does not email to get in touch with taxpayers regarding their account.
If you doubt the authenticity of a supposed IRS tax agent, you can call the IRS?toll free number 800-829-1040.
Frivolous Arguments Some scammers make outlandishly claim that the Sixteenth Amendment on congressional power to establish and collect income taxes was never ratified.
These scammers also claim that wages are not income or that filing tax returns and paying taxes are voluntary.
Some even go to the extent of claiming that Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy.
What you should know is that such claims are false.
You have to pay your taxes.
However, you can always contest your tax liabilities in court.