WARKA Forum Index  
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

ዋርካ ቻት - በአማርኛ በቀጥታ ይወያዩ! Warka Live Chat | Home (New!) | About us | Contact us
Tax cheats are out to get YOU!

 
Post new topic   Reply to topic    WARKA Forum Index -> Warka General


 
View previous topic :: View next topic  
Author Message
እህምም

አለቃ


Joined: 19 Dec 2005
Posts: 2400
Location: on a small rock; between an ocean and a sea.

PostPosted: Thu Feb 08, 2007 8:47 pm    Post subject: Tax cheats are out to get YOU! Reply with quote

Tuesday February 6,
By Dayana Yochim


The best-case scenario: You'll pay triple-digit interest rates to borrow your own money for a few weeks. Worst-case: You'll share a jail cell with the con who promised to sweet-talk the IRS on your behalf.

Loathsome but legal

The most common tax-time pitch is the "instant refund," which gives you access to your refund money to tide you over until the IRS sends the official check. In 2004 (the most recent stats available), one in 10 taxpayers got a short-term refund anticipation loan (RAL), according to the Consumer Federation of America and the National Consumer Law Center.

Although RALs are offered by legit businesses, the loan terms rival those of the neighborhood loan shark. Small fees ($30 here, $59 there) add up. On the average refund this year ($2,150), forking over $100 to cover loan costs puts your effective APR at 178%. (No, that's not a typo.) Add in admin fees and you're looking at a 235% APR. (Again, not a typo.)

The hidden fees and misleading marketing of RALs have gotten two tax-prep giants in trouble with the law. A few years ago, H&R Block found itself staring down the business end of a class action lawsuit for neglecting to reveal e-filing, loan document preparation, and administrative fees that could triple the cost of a customer's loan. Just last month, Jackson Hewitt agreed to pay $4 million in consumer restitution for similar abuses. (FYI: Both companies still peddle these products, though probably with more frank fee disclosure.)

Need speed?

If you really can't wait for your refund check, consider e-filing your tax return. (The average fee for electronic filing is $23, according to the National Society of Accountants.) It's interest-free and fast -- boasting a turnaround time of three weeks or less. If you prefer the hard-copy filing, you can shave off several days of waiting by having your refund electronically deposited into your bank account.

Scams, shenanigans, frauds, and fiends

Don't put your guard down after you dodge the RAL rigmarole. The cons are out in full force, too. Typical ploys falsely promise to reduce or altogether eliminate your tax bill. (See also: "I've got some valuable swamp land in Florida I'm willing to part with for a song.") The "zero wages" and the mysterious "form 843 tax abatement" schemes, for example, encourage filers to falsify information on legitimate IRS forms in the hopes that a blizzard of paperwork will distract the Feds.

Other scams encourage taxpayers to illegally hide income in an offshore bank or brokerage or move money into a tax-exempt supporting organization or a donor-advised fund while still maintaining control over the money. (Both no-nos.)

Also beware of phishing scams where ne'er-do-wells pose as IRS agents or other legitimate financial institutions (notifying filers of an audit or outstanding refund) to get taxpayers to reveal personal financial information. Click "delete" ASAP. The IRS doesn't email. Anyone. Ever.

If headaches, fines, prison, and steep penalties are your idea of fun, then go ahead and sign on the shady dotted line. If you do fall prey to any of these scams or suspect tax fraud, report it to the IRS via Form 3949-A. Here are some tips on staying on the right side of the law with Uncle Sam.

Mailbox mayhem

And, finally, this entry comes from the "just because you're paranoid doesn't mean they're not after you" file. Christmas for fraudsters starts in January. That's when information-rich tax-related documents begin to snake through the postal system. According to CNET, about 8% of identity theft cases are linked to mailbox breaches.

Keep a watch on lock-pickers by keeping a running list of everyone who pays you -- employer, banks, brokerages, etc. (Here's a simple way to organize your tax paperwork.) Check off the names as soon as you receive a copy of what they filed to the IRS. Track down docs that are missing in action by mid-February by contacting the original source.
_________________
Homage to darkness : http://yekolotemari.blog.com/2010/02/09/homage-to-darkness/


"Is it stealing
if I take
the pains of others

and make it my healing?"
http://elicitbeauty.blogspot.com/
This message expresses the views and opinions of the author and not necessarily those of CyberEthiopia, its staff or its affiliates. If you think this message is inappropriate or violates our rules and regulations , please notify the Administrators by clicking on the report button below.
Back to top
View user's profile Send private message Report post
samsonH

መንገደኛ


Joined: 16 Jun 2012
Posts: 1

PostPosted: Sat Jun 16, 2012 5:39 am    Post subject: Reply with quote

Tax cheats are becoming very common in the United States. Because of this, legislators are beginning to crack down on businesses that use so-called "tax zapper" programs to keep 2 sets of books by basically inserting a flash drive into the cash register. States say the software programs costs them billions of dollars in unreported taxes.
_________________
https://personalmoneynetwork.com/moneyblog/2012/04/05/tax-zappers/
This message expresses the views and opinions of the author and not necessarily those of CyberEthiopia, its staff or its affiliates. If you think this message is inappropriate or violates our rules and regulations , please notify the Administrators by clicking on the report button below.
Back to top
View user's profile Send private message Report post
Display posts from previous:   
Post new topic   Reply to topic    WARKA Forum Index -> Warka General All times are GMT + 1 Hour
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Provided by CyberEthiopia.com , powered by phpBB © 2001, 2005 phpBB Group , Original Amharic translation by Ethiopic Open Source Translation modified by CyberEthiopia