The IRS has issued its annual 'Dirty Dozen' list of tax scams, highlighting a variety of schemes
Claiming excessive or bogus business credits to reduce your taxes is improper. Two schemes, in particular, involving the fuel tax credit and the research credit, have attracted the attention of the IRS. Unsupported claims for tax credits may subject taxpayers to penalties and interest. It is not illegal to have cash, brokerage accounts or other investments in foreign countries. It is, however, illegal to use foreign accounts to evade U.S. taxes.
Frivolous tax arguments may be used to avoid paying tax. Examples of frivolous tax arguments include refusal to pay taxes on religious or moral grounds by invoking the First Amendment, claiming that only federal employees are subject to federal income tax, or declaring that only foreign-source income is taxable. Those are all bogus. The penalty for taking one of these positions on a tax return is $5,000; additional penalties may also apply, including criminal prosecution.
Don't get sucked into schemes promoted by advisors who promise you that you can permanently avoid taxation by buying their shelters and products. If it sounds too good to be true, be wary.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Phishing Schemes Top List of IRS Dirty Dozen Tax Scams For 2019With just a few weeks until Tax Day, the Internal Revenue Service (IRS) is reminding taxpayers to be on the lookout for tax scams. The IRS has issued its annual 'Dirty Dozen' list of tax scams, highlighting a variety of schemes. The common thread, according to the IRS: Scams put taxpayers at risk.
Read more »
Over 92% of kale samples contained two or more pesticides, study findsKale has joined the 'dirty dozen' list of fruits and vegetables that are most likely to contain pesticides
Read more »
How Much Do You Know About IRS Audits?The more you understand about audits, the better prepared you’ll be.
Read more »
IRS Offers More Cushion To Taxpayers Who Paid Too LittleThe Internal Revenue Service lowered the threshold for avoiding penalties on underpaid income taxes again: Taxpayers can avoid the penalty for 2018 if they withheld or made timely estimated payments of at least 80% of what they owe.
Read more »
IRS gives even more taxpayers a break on 2018 underpayment penaltiesIf you were short on your 2018 tax withholding, the IRS may be giving you a pass.
Read more »
IRS Expands Tax Underpayment Penalty ReliefIf you’ve already filed your 2018 tax return and paid an underwithholding penalty, you might be eligible for a refund.
Read more »
If you hit the $750 million Powerball jackpot, here's your tax billRight off the bat, the IRS would get more than $100 million in taxes.
Read more »
IRS Will Offer Free Help For Those Struggling With Withholding TaxesIf the changes to tax rates and withholding over the past year have you scratching your head, help is on the way. The Internal Revenue Service (IRS) is offering a free online information session on how to do a Paycheck Checkup.
Read more »