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How to become a Soprano
Part 2: More tax time scams to watch for
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• 1: Be a Soprano
3: Entire Scam Email
 
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"How come Tony Soprano doesn't have a mob nickname? Paulie Walnuts does. All Tony gets is the occasional "T." Does anyone have any ideas for a new nickname for Tony?"
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"Is Rep. Jim Traficant the 'Tony Soprano' of the United States Congress?"
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  Related Resources
• State Tax Forms
• Online IRS Complaints
• Bush Tax Cut & You

 
 From Other Guides
• The Sopranos
• US Rep. & Mob Ties?
• Paperless Tax Filing
• Paying Your Taxes
 
 Elsewhere on the Web
• The Sopranos on HBO
• Internal Revenue
Current US Tax Code
 
 

"No Taxes Withheld From Your Wages" -- Illegal schemes are being promoted that instruct employers not to withhold federal income tax or employment taxes from wages paid to their employees. These schemes are based on an incorrect interpretation of tax law and have been refuted in court. If you have concerns about your employer and employment taxes, you can get help by calling the IRS at 1-800-829- 1040.

"Special Tax Refund for African Americans" -- Thousands of African-Americans have been misled by people offering to file for tax credits or refunds related to reparations for slavery. There is no such provision in the tax law. Some unscrupulous promoters have encouraged clients to pay them to prepare a claim for this refund. But the claims are a waste of your money. Plus, those who file subsequent claims can be subject to a $500 frivolous return penalty.

"Pay the Tax and Get a Prize" -- The caller says you’ve won a prize and all you have to do to get it is pay the income tax due. Don't believe it. If you really won a prize, you may need to make an estimated tax payment to cover the taxes that will be due at the end of the year. But the payment goes to the IRS – not the caller. Whether you’ve won cash, a car, or a trip, the prize giver generally sends you and the IRS a Form 1099 showing the total prize value that should be reported on your tax return.

"Social Security Tax Scam" -- Taxpayers shouldn’t fall victim to a scam offering them refunds of the Social Security taxes they have paid during their lifetimes. The scam works by the victim paying a "paperwork" fee of $100, plus a percentage of any refund received, to file a refund claim with the IRS. This hoax fleeces the victims for the upfront fee. The law does not allow such a refund of Social Security taxes paid. The IRS processing centers are alert to this hoax and have been stopping the false claims.

"I can get you a BIG refund... for a fee." -- Refund scheme operators may approach you wanting to "borrow" your Social Security Number or give you a phony W-2 so it appears that you qualify for a big refund. They may promise to split the refund with you, but the IRS catches most of these false refund claims before they go out. And when one does go out, the participant usually ends up paying back the refund along with stiff penalties and interest. 

Two lessons to remember: 1) Anyone who promises you a bigger refund without knowing your tax situation could be misleading you, and 2) Never sign a tax return without looking it over to make sure it’s honest and correct.

"IRS 'Agent' Comes to Your Door to Collect" -- First, do not let anyone into your home unless they identify themselves to your satisfaction. IRS special agents, field auditors, and collection officers carry picture IDs and will normally try to contact you before they visit. If you think the person on your doorstep is an impostor, lock your door and call the local police. To report IRS impostors, call the Treasury Inspector General’s Hotline at 1-800-366-4484.

Next page > Entire Example Scam Email > Page 1, 2, 3

 

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