Don’t lose your tax return to thieves and tricksters! Stay alert this tax season!
Every year the Internal Revenue Service releases their ‘dirty dozen’ list – a list of the 12 most pervasive tax scams that end up costing people a small fortune. Scams that are illegal in every state in the U.S., and can rob people of money they were counting on. Scams that, if you decide the risk is worth it in the name of easy money, could land you behind bars for years, if not decades.
Since it’s that time of year again – tax time – we break down a few of the most common tax scams you’re likely to encounter here in Michigan, and what our state laws have to say about them. Remember, you have until April 17th to file your taxes this year, and if you go past that date you have to file for an extension or risk having the IRS come after you for tax evasion!
Tax Preparer Fraud:
How it happens:
According to the IRS, tax preparer fraud usually involves “the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may manipulate income figures to fraudulently obtain tax credits, such as the Earned Income Tax Credit.”
The facts about tax preparer fraud:
It is important to choose an honest and reputable accountant to prepare your taxes for you. When you have someone file your taxes for you, you provide them with all kinds of private information about you and your family. If they aren’t honest, they could steal this information and use it in all kinds of illegal ways. Also, if your tax preparer inflated your expenses or misrepresented your income in such a way as to get a higher refund for you, you could also be facing criminal charges!
Tax preparer fraud in Michigan:
A tax preparer who is convicted of fraud will lose their professional license, and may also face state of federal criminal charges. A single count of Preparing Fraudulent Tax Returns is punishable by a minimum of three years in prison under Michigan law. A tax preparer who prepares multiple fraudulent tax returns may face a felony charge for each and every one they file! This can amount to many years in prison.
Phone Scams:
How it happens:
These usually come in the form of someone calling you to tell you that the IRS is investigating you for unpaid taxes. They are likely to tell you that you can make up the unpaid taxes by providing them with a credit or debit card number so that the amount can be settled immediately. They may tell you that local law enforcement has been provided with a warrant, and has been authorized to arrest you. They also sometimes threaten deportation or revocation of a professional license.
The facts about back taxes:
It is important to know that the IRS will NEVER call your house to tell you that you are about to be arrested or deported! They will also never threaten you with legal action over the phone. If you do owe back taxes, the IRS will contact you through the mail (several times if they do not get a response). They will always attempt to set up a meeting with you,or provide you with an opportunity to pay what you owe without going to court. And in the event that this isn’t possible, you will have a chance to defend yourself in court. That’s the right time to consult a tax attorney.
Phone scams in Michigan:
Anyone who calls you, claiming to be the IRS and that you owe the IRS money, in an attempt to get private identifying information from you, or to coerce you to pay them, is committing a crime. The Michigan Home Solicitation Sales Act makes it illegal for anyone to call you and use misleading or incorrect information to get you to pay for a good or service. Anyone who violates this law is subject to penalties provided by the Michigan Consumer Protection Act.
Have you been accused of a financial crime in Michigan?
Have you or a loved one been accused of financial or fraud crimes in Michigan? Have you made a mistake that the IRS has assumed was criminal activity? If so, you are going to need immediate help from fraud crime defense attorneys with lots of experience handling financial crimes. You need help from The Kronzek Firm.
Our skilled criminal defense attorneys have spent decades defending people in Michigan against accusations of financial criminal activity, with successful results. We understand the complex nature of financial crimes, and exactly how these type of accusations need to be handled. Call 866 766 5245 (866 7NoJail) today to discuss your case with an attorney who can help. Also, please join us next time to wrap up this short but important list of tax scams in Michigan.