Tax Scams & Schemes

Tax Angles That Aren't Legal


Those who are strongly motivated to minimize or avoid taxes are often the victims of unscrupulous promoters of illegal tax schemes. Although the focus of this web site is on legal methods of avoiding or reducing taxes, taxpayers need to be aware of the scams, schemes and hoaxes that can lead them into having to pay extreme penalties (in addition to back taxes) and that could lead them into spending some time in the government's free "hotel" - also known as jail. This web page provides links to articles and other web sites that I believe to be responsible sources of information about what is legal and what is not.

Unlike the tax protestor who argues that the entire tax law is illegal in some manner, a tax scam,  scheme or hoax is simply based on arguments or theories about specific parts of the tax law that have been found to be false by various court cases -- or which are blatantly at odds with the tax law. In some cases, the scam is based on laws that have been changed, but the promoter is quoting out-dated tax laws to the victim.

Vern Jacobs

Copyright, 2003


Avoiding Tax Scams, Shams & Illegal Shelters
http://www.taxboard.com/Audit-Proofing/step4.html

AICPA Journal of Accountancy - Not all Trusts Are Trustworthy -  http://www.findarticles.com/m6280/3_188/55911596/p1/article.jhtml

US Government Resources/Info
http://usgovinfo.about.com/newsissues/usgovinfo/library/weekly/aa021701a.htm

IRS Online - Tax Scams
http://www.irs.gov/newsroom/article/0,,id=98269,00.html

Quatloos - Expose' of the "Tax People" http://www.quatloos.com/groups/taxpeopl.pdf

Milwaukee Journal Sentinal - Article about a Bankruptcy/Tax Scam
http://www.jsonline.com/bym/your/oct99/cookcol01100199a.asp

The Militia-Watchdog
http://www.militia-watchdog.org/puretrust.htm

Contractor Magazine - Five Tax Scams
http://www.contractormag.com/articles/0799/ctaxes.asp

Charitable Family Limited Partnerships - http://www.taxprophet.com/hot/nov99.htm

Trust and Tax Scam Bulletin Board  - http://www.taxprophet.com/hot/Trustscam.htm

Trust Scams; An Update - http://www.taxprophet.com/hot/may98.html

Anatomy of a Trust Scam - http://www.taxprophet.com/hot/sept97.html

Will Trusts Avoid Taxes? - http://www.taxprophet.com/hot/apr96.html

MSN Money Central - How to Attract an Audit
http://moneycentral.msn.com/articles/tax/basics/..%5Cprepare/1384.asp


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Caution:  While the information in this web site is believed to be from reliable sources and is believed to be accurate, it is not intended to represent legal, tax or financial advice for any reader of any part of this web site. Due to frequent changes in the laws, new court cases and differences of opinion among professional advisors, readers should not rely on this information without the help of a qualified professional advisor.