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IRS WARNS PUBLIC ON ILLEGAL TAX SCAMS

 IRS WARNS PUBLIC ON ILLEGAL TAX SCAMS
 SEATTLE, Nov. 26 /PRNewswire/ -- The Internal Revenue Service


(IRS) today warned Washington taxpayers that December through April is the prime season for promotion of illegal tax scams that promise startling ways to avoid taxes, but can get those participating into serious financial and legal trouble.
 IRS Public Affairs Officer Dick Wightman said, "Nobody enjoys paying taxes, and every year we see some taxpayers get in trouble by falling for schemes that promise they can get out of it. In past years, claims have been made that the tax law is illegal, that there is no legal money in circulation, or that claiming to work for a foreign company makes your earnings tax free. This year, these is a promotion that claims that you don't have to pay taxes because the IRS is not a government agency, but rather a private corporation chartered in Delaware!"
 Wightman cautions that these schemes to avoid taxes have been heard and dismissed by the federal courts and their use can result in greatly increased tax bills and criminal prosecution. His advice: "If it seems too good to be true, it undoubtedly is.
 "There are certainly plenty of provisions in the tax law for a wide variety of deductions," he said. "We don't want anyone to miss deductions they are entitled to or pay more tax than they owe. However, if someone starts saying you can avoid taxes completely by twisting some of the provisions in ways that don't seem reasonable or logical, run, don' walk, to the nearest exit."
 Wightman also commented that while the schemes are still present, the IRS is seeing fewer returns using them than in the past. "Tax law changes over the past several years have made it more difficult to use abusive shelters and schemes. Some people who used to use those schemes are trying to get by without filing, but that's a fool's game. There are so many records now that we pick these up pretty quickly with computer matching."
 -0- 11/26/91
 /CONTACT: Dick Wightman of Internal Revenue Service, 206-553-5515/ CO: Internal Revenue Service ST: Washington IN: SU:


JH-LM -- SE007 -- 7419 11/26/91 15:09 EST
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Publication:PR Newswire
Date:Nov 26, 1991
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