Uncle Scam Wants Your Money! A taxing look at taxing.

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The Internal Revenue Service has and several years ago issued a consumer alert, advising taxpayers to beware of these claims. According to the IRS announcement, "This bad advice costs taxpayers money and time. The IRS has the authority to settle, or "compromise," federal tax liabilities by accepting less than full payment under certain circumstances. Late-night television, radio, and even some daytime television commercials fill your ears with promises of tax miracles. You're probably getting lots of e-mail, too.

Since the IRS filed a tax lien against you, your mailbox is being filled with solicitations from certain tax firms promising you quick resolution of your problem. The truth is they'll take far too much of your money — and not help you nearly as much as you'd expect. Only use firms when you can get a recommendation from someone you know who has used them successfully.

Otherwise, go to your own tax professional to have them help you — or to ask them for a recommendation. The IRS also offers a do-it-yourself kit.

There's a Form kit that can be downloaded from the IRS's website. The IRS even provides workshops on filling in these forms. Check the IRS website at www. Before you do all that, be sure you qualify. What if you don't qualify for an OIC?

Don't waste your time applying if you don't meet the IRS standards for applying. Here are some general parameters — not the ones the IRS posts, but the reality they use when considering your offers:. Are you young, healthy, and able to work? Do you have a college education but are choosing not to pursue work in your own field because you'd rather follow your dream? Do you have a steady income? Do you have equity in your home?

Or an IRA or other retirement account? Are you expecting a windfall? Or a great job about to start pouring money your way? It's one of the few reasons the IRS will send you to jail. Look at your own earning capability over the next five years. Even though it may be tight, if there's enough left over, by living within your means, the IRS will reject your offer. They won't wait while you pursue your dreams and live as a starving artist. They'll simply reject your offer in compromise.

Suppose you do qualify and are ready to prepare an OIC.

Watch out for these new tax scams | Consumer Information

Attach legible copies of all forms, bank statements, and bills requested by the IRS. Enclose three months' worth. If you're not willing to provide the IRS with this much information, don't even start the process. The IRS now requires a fee to be sent in with the application. So, you're wasting your money if you don't follow through. If you simply attach everything and enclose anything else they want, you're already in that small minority that might get accepted.

It is highly advisable to work with a competent tax professional who has a track record of getting OICs for their clients. It is a long, complicated process and having a pro who has gone through it can help. Since you must provide all the documents anyway, you can save yourself dozens of hours of billable time if you gather them all and organize them yourself.

The OIC process is slow and nerve-wracking. Even if you hire an ethical tax professional to deal with the IRS on your behalf, expect to pay for at least 10 to 15 hours, if you're organized and cooperative. If you must be chased down and hounded to get documents or if you just dump all your records on them and expect them to do all the work, you're back up to 20 to 40 hours. This discussion is intended to represent a generic discussion of possible payment options when you owe money to the IRS. Your individual results may vary based on the specific facts and circumstances of your case. It is highly recommended that, as early as possible, you consult a tax advisor experienced in dealing with the IRS to discuss the specific options available to you.

Any information presented about tax considerations affecting client financial transactions or arrangements is not intended as tax advice and should not be relied upon for the purpose of avoiding any tax penalties. Neither Merrill Edge nor its financial solutions advisors provide tax, accounting or legal advice. Clients should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with their personal professional advisors. Reproduction in whole or in part prohibited, except by permission.

Not responsible for any errors or omissions. Ive been getting numerous threatening calls for the past month!!.

Watch out for these new tax scams

Everytime i block 1 number, they call from another.. Received the same phone call today! Scared me so bad until I got home.

Luckily my daughter calmed me down and we looked on this site to see the same number being listed as a fake number, based out of Canada! Thank you for this information!!! The fake web site scam is news to me. I wondered if they could put in fake I. Is there a place to check out these numbers, just in case they get smart and start putting look-alike Identification numbers onto their ads? Great and timely alert which is also easy to understand. I've made copies for the members of my Computer Club. The IRS offers free tax help to some people, including people with disabilities.

One free program is called VITA. Call to see if there is a VITA program near you. The other program is TCE. Call TCE at to see if they have a location near you. The federal government has more help for older adults.

Administration on Aging can help you find services. Francesca, Thank for this information. This save all persons young and senior citizen from having their lively hoods taken away from them. In this day and age there are person who are corrupt and dangerous. With people like you, makes this world a better place. When do the scammers start a scam for prepaid funeral expenses, then duping relatives to pay off what isn't covered? You can give details about what you paid and what you were asked to pay.

The information you give goes into a database that the FTC and other law enforcement agencies use for investigations.

Nigerian scams statistics

I did not cash it because I knew it was a scam. If the check came by postal mail, you can give the check and envelope to your local post office. Or, you could give the check to your bank. I retired over 10 years a go, and my retirement income is not taxable, so that should make me immune from this tax scam. Should increase civil penalty to death sentence.

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No one should mess around with other people's hard earned money! I just filed a complaint because those "IRS Services" scammers you prosecuted last year are back! Had two of the IRS calls last week I knew it was a a scam I get swick and tired of these things. Both my mother and my son got the fraudulent call on the second scenario. Luckily they were both cautious enough to know what to do and not fall for it!!!! I have received to many emails: Todd Slone of the Publishers Clearing House. I have kept a file on the mails on paper as print out.

I have also sent some to the FBI. I just received several calls from posing as IRS. Talking about allegations and threat of being arrested. I've received two calls from two different phone numbers saying there are "4 serious allegations pending with local police against me and to call back right away.

They don't provide any other information but this. I did call back one and I don't think they even had voice mail. Then I got another call from the 2nd to follow with the same message. Isn't this a crime to impersonate a legal entity and threaten citizens?? I received the same message today at Also said I'd be picked up by the local police and to call back immediately.

Called the number back he stated my name and asked if this was who he was talking to. I said you called me so I'm assuming you know my name what can I help you with today. He told me he didn't need my attitude and hung up. I did receive a text alert from my local police department warning local residents about this scam. I received a message on my phone this morning telling me also that there are 4 serious allegations against me, and I need to call them. The number was , from Michigan. I called it just to see, and it sounded like a very busy call center.

Then a guy with a heavy Indian accent answered and I asked who they are, and the guy said IRS, kind of laughed and hung up. I live a quiet life and I am law abiding so I figured it was some kind of scam. So I looked it up and found this. They will keep asking for more money as long as you are willing to part with it.

The request includes a long and often sad story about why the money cannot be transferred by the owner. This typically involves some type of conflict or inheritance and they may want to move the money straight into your account.

You are offered a financial reward, such as a share in the amount, for helping them access their 'trapped' funds. The amount of money to be transferred, and the payment that the scammer promises to you if you help, is usually very large. They will claim that a bank, lawyer, government agency or other organisation requires some fees to be paid before the money can be moved. The scammer will often ask you to make payments for the fee via a money transfer service.

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If someone is claiming to be from a particular organisation verify the identity of the contact by calling the relevant organisation directly — find them through an independent source such as a phone book or online search. Do not use the contact details provided in the message sent to you. If you think you have provided your account details, passport, tax file number, licence, Medicare or other personal identification details to a scammer, contact your bank, financial institution, or other relevant agencies immediately. We encourage you to report scams to the ACCC via the report a scam page.

This helps us to warn people about current scams, monitor trends and disrupt scams where possible.

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