For more than twenty years, the Internal Revenue Service (IRS) has released a list of top tax issues for the year in an effort to help keep taxpayers from falling victim to potential scams. This year, one of the top scams the agency is calling involves promotors selling “bogus tax strategies” to taxpayers.
What is the bogus strategy?
According to the agency, bad actors are posing as tax experts who can help taxpayers save on (or completely avoid) their tax obligations. This year, the agency has warned taxpayers that bad actors are encouraging the use of offshore accounts. Although some such strategies are legal and can optimize tax savings, these bad actors often inflate or otherwise fraudulently apply the strategy.
One such strategy that the IRS has called out involves use of otherwise legal tools to avoid tax obligations by hiding money in foreign accounts — potentially leaving the taxpayer exposed to allegations of criminal tax fraud.
How can I reduce the risk of making a wrong move in these types of situations?
Two steps can make all the difference:
- Seek legal counsel. An attorney experienced in this very niche area of law can review any potential tax plans and discuss the pros and cons — helping to better ensure you are aware of any potential risks before you move forward with any tax saving strategy.
- Take allegations of wrongdoing seriously. Do not brush off a letter from the IRS. Take any notification of an upcoming audit or request for additional information seriously. The IRS is aggressive when they believe you have evaded tax obligations.
Those who find themselves in the IRS’ crosshairs are wise to act to protect their interests. The attorneys at Goldburd McCone are experienced in these matters. They can review the allegations and discuss your options, tailoring a strategy to your specific situation to better ensure a favorable outcome.