Tax Scam Essay

Now the following information is well documented and is presented for your review and edification. Do not try to fight the IRS in federal court, you will not win. The deception runs rampant throughout the executive, legislative and judicial branches.

Tax avoidance has become a massive topic of discussion over the past few years, given the current global economic conditions and the cuts to the public sector by the government as a result. This led to increased anger from the public who perceive avoidance by many of the country’s wealthiest people in a time of austerity as greed. Perhaps the most notable demonstration of this anger can be seen in the actions of the group UK Uncut, who for the past year have been organising protests at shops owned by retail tycoon Philip Green who, as the poster boy for tax avoidance, paid a £1.2 billion dividend to his Monaco-resident wife.

One type of fraud is called fraud against other adults, specifically grandparent fraud. The scammer poses as their grandchild, close relative, or a representative (policeman or lawyer) of the relative, and tells them that they are in trouble, such as jail, and need money wired to them as soon as possible for hospital bills, jail bail, lawyer’s fees, etc. They tell the grandparent that they should not mention this

When illegal immigrants claiming the earned income tax credit are found to have fraudulent Social Security Numbers, the IRS issues them temporary numbers and sends them checks anyway (64).

Stanton Delaplane once joked about the IRS, saying he heard it had suggested a simplified tax form with only one question: How much money did you make last year? The IRS response was, "Mail it in"." Thank goodness, our taxes haven 't gotten quite that bad. It is true though, that the majority of Americans, most of us included, have to bite the

Irwin Schiff’s The Federal Mafia: How It Illegally Imposes and Unlawful Collects Income Taxes is a how-to manual on how to stop paying income taxes. Schiff wrote this book in 1980 while in prison for failing to file income tax reports. Schiff has been in jail several times for tax evasion and other crimes involving taxes.

Along with the rising threats of larger militaries spawning in the world, it became apparent we needed more funding for our own. Along with the rapid development of America came more demands for the government to pay for. Although, how the money is collected is confusing, and how it is spent becomes wasteful at times. The IRS is one of the most confusing systems to understand for not only citizens, but the people who operate and work for it. Alongside with how the money is never saved and meant to be spent when given to government agencies, doesn’t respect the taxpayer. I find it necessary, although how it is practiced boots it down the list.

2. The complaint is frequently heard that the IRS appears to operate as if there were no restrictions upon its authority to investigate and harass taxpayers. Discuss what controls Congress, the courts, and the executive branch exert over the IRS and its administration of the tax law.

This type of fraud needs to stop because it is only affecting hard working people that pay their taxes.

Also many people can find ways around taxes, both legal and illegal, so they don't pay as much as they should be.

In the past several years, technology advancement has made individuals identity more susceptible to be stolen. I find this topic to be very interesting because I have had my identity compromised. Several years ago when I was nineteen I was completing credit reports on several popular credit reporting websites. Each time I would finish answering the questions and putting all of my personal information into the website I would be directed to another questionnaire where I would be asked to list properties that I had owned, if I lived in a certain location, and if I knew certain people. I did not know any of these locations or individuals that the website would list. Being nineteen and naïve I would just take the incident as something being wrong with the website or just a minor error on my part. A few months went by I was filing my taxes like the year previous. I had no problems occur and everything seemed to be good. About a week later I was at work, and the Internal Revenue Service had called. I was extremely nervous. The IRS had called to tell me that my identity needed to be confirmed. I thought this was really strange. So while this was going on my tax return was just at a standstill. I was so aggravated, between the calls with my tax preparer and the IRS, I thought it was never going to be resolved. During this time, my bank had been trying to reach me, but the bank had the wrong information on file. One day I was sent a letter in the mail that informed me that my last

One of the easiest ways to make a mistake when filing taxes is to use the wrong designation. Many individuals wrongly file that they are single, when in fact they qualify as head of the household on there taxes. There is a big tax difference between filing as single verses filing as head of the household. You will get a much larger refund when the government believes you are responsible for other people than when they just believe you are taking care of yourself.

In this composition, we will be discussing two topics that go hand in hand when it is dealt with in tax accounting. To fully understand the scope of this article, passive activity is defined by the IRS as “any rental activity or any business in which the taxpayer gains income but does not materially participate in the activity”(IRS). Examples of passive activities can include equipment leasing and real estate leasing, in contrast to salaries, wages which are generally considered non-passive activities. As the article “Skip the dorm, buy your kid a condo” states, there are tax benefits when renting a property, but now individuals have exploited loopholes in the tax code that can be controversial and even illegal.

KPMG was one of the biggest accounting firms in the 90’s that with a lucrative end, would serve wealthy companies using forged revenues in order to avoid taxes. The accountants that worked for the firm were expected to meet certain quotas. Consequently, instead of trying to run an honest business they were trying to maximize the sales using all kinds of dishonest marketing approaches. KPMG employees used foreign banks as well as bogus law firm statements to preserve a legitimate business running. This accounting firm manipulated financial data of clients, costing the internal revenue service over 2.5 billion in lost tax revenue

Types of misuse and fraud include claiming unemployment benefits while working another job that pays cash only which isn't reported, failing to actively seek employmen while collecting unemployment, and fraudulently using stolen social security numbers to claim unemployment.