Tax settlement firm warns taxpayers about filing scams

February 13, 2006 (PRLEAP.COM) Business News
Executives at Maryland-based FSI Tax Corp are urging taxpayers to look out for common tax scams as the April 17 filing date approaches.

The IRS released on February 7 its annual list of the 12 most common tax scams, known as the Dirty Dozen, that taxpayers should avoid. The IRS noted two new scams known as “zero wages” and “Form 843 tax abatement” in which filers use IRS forms to claim their tax bills are wrongly inflated.

Other popular tax scams involve tax preparers who guarantee larger returns — especially without full knowledge of a taxpayer’s situation — or tax preparers who promise to eliminate taxes. These preparers charge inflated fees with the promise to get high tax returns but leave the taxpayer in debt to the IRS when inaccurate or excessive deductions are claimed which the IRS eventually finds illegitimate.

“You are ultimately responsible for your taxes,” said FSI Tax President Sean McCabe. “Even if you are misled by a tax preparer, the IRS will hold you accountable as long as you signed your return.”

McCabe as also warns that identity theft scams are prevalent around tax season. Taxpayers should always be aware of who is receiving personal financial information. This is especially true on the internet because some fraudulent tax preparers create bogus websites to exploit taxpayer information. Scammers can also use sensitive financial information or Social Security Numbers to claim someone else’s children as dependents.

The IRS does not contact taxpayers about their accounts through email. If you receive tax-related information through email and you suspect that it is illegitimate, call 1-800-829-1040 to report the incident.

“If a tax preparer advises you to do something that seems illegal or makes promises that sound too good to be true, that is reason enough to be suspicious,” warns McCabe. “Be especially careful who prepares your taxes and remember to always read your return before signing.”

FSI Tax consultants also urge taxpayers to disregard claims that taxes are voluntary or that the IRS operates illegally. These claims are not upheld in court and following the advice of these tax-protestor scams will get you in trouble.

About FSI Tax Corp:
FSI Tax is a tax resolution company headquartered in Columbia, MD, since January 2004. It is dedicated to helping taxpayers resolve their tax debt through various programs available from the IRS and state tax agencies. FSI Tax services include tax resolution through Offer in Compromise, Installment Agreement and other available tax relief programs. For more information, please call FSI Tax Corp at 1-877-4-FSI-NOW (1-877-437-4669) or visit