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Education for Justice |
FACT SHEET T-4 |
For
tax year 2011 |
COMMON
TAX SCAMS
·
No Taxes Being Taken Out of Your Wages. Unless you are an independent contractor, or
self-employed, your employer must take taxes out of your paychecks. It is illegal for an employer not to.
·
“I Don’t Pay Taxes – Why Should You?” Some people run ads saying that they don’t
pay taxes. They offer to share their
“secret” for a fee. Many of these people
actually do file and pay taxes, but don’t publicly admit it. Anyone who fails to file or pay taxes can be
subject to civil and/or criminal penalties.
·
African Americans Get a Special Tax
Refund. Thousands of African
Americans have been misled by people offering to file (for a fee) to get tax
credits or refunds as reparations for slavery.
There is no tax law which allows such refunds. Taxpayers who file such claims may be subject
to a penalty.
·
Social Security Tax Scheme. This scam charges taxpayers a fee
to claim a refund of all social security taxes paid. The law does not allow such a refund.
·
Pay the Tax, Then
Get the Prize. A caller says you have won a prize and all you have
to do to get it is to pay the income tax due.
Most prizes are taxable, but no honest contest makes you pay the tax
before getting the prize.
·
Untax
Yourself for $49.95. Some ads
say that paying taxes is “voluntary”.
The tax system is largely voluntary.
But if you don’t file and pay voluntarily, the IRS can collect taxes by garnishing wages and putting liens against
property. Following the advice in “untax packages” can get you civil and/or criminal
penalties.
·
“I Can Get You a Big Refund – for a
Fee!” Refund scammers may try
to “borrow” your social security number or the numbers for your children. They may also give you a phony W-2 so that it
seems you should get a bigger refund. Never let anyone use your social
security number or your children’s. Never use a false W-2 form. When the IRS catches you, you must pay back
all the money, plus interest and penalties.
You could be charged with a crime.
Anyone who promises you a bigger refund without knowing your tax
situation could be misleading you.
·
NEVER sign a tax return
without looking it over to make sure it is honest and correct. If you have questions, ask your tax
preparer. Explaining the tax return to you
is part of their job.
·
If you pay someone to do your taxes, ALWAYS make sure the preparer signs
your tax return. It is misdemeanor for
paid preparers to not sign a return.
|
MN Legal
Services Coalition |
Don’t use this fact sheet if it is more than 1 year
old. Write us
for updates, a fact sheet list, or alternate formats. Fact Sheets
aren’t a complete answer to a legal problem. See a
lawyer for advice. |
|
© 2012 Mid-Minnesota
Legal Assistance. This document may be
reproduced and used for non-commercial personal and
educational purposes only. All
other rights reserved. This notice
must remain on all copies.
Reproduction, distribution, and use for commercial purposes are
strictly prohibited. |
|
To find other Legal Aid Society materials, including
any fact sheets mentioned in this document, go to www.lawhelpmn.org/LASMfactsheets