What Traps and Pitfalls to Avoid


Everyone wants their tax refund as soon as possible. Unfortunately this can lead unsuspecting Taxpayers to be taken advantage of. These cases will lead to some or all of their money being taken, and in some situations, they can even land in jail. Let’s take a closer look at some common pitches that are offered and the potential consequences.

The “Instant” Refund. The idea here is to give the Taxpayer access to their refund, before it comes from the IRS. This is actually a short-term loan being provided by the Tax Professional. There are many fees applied to loans like this, which means that they have a very high interest rate. So hundreds of dollars from your actual refund will pay for this loan. Make sure to read all the details in the small print.

The “zero wages” tax bill. The idea here is to send false information to the IRS hoping that it will be accepted or missed entirely. Some might suggest moving money to an offshore bank account. Others may urge a Taxpayer to move money to a tax-exempt organization that allows them to keep control of their funds. These are two ways some have tried to avoid paying taxes. All they lead to is a mountain of paperwork, fines, penalties, and prison. Above all, the Taxpayer is always held responsible. Stay informed about how your Tax Professional is working for you.

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