BELNAVIS

🚨 DIRTY DOZEN #10:
Overstated withholding schemes (fabricated wage/withholding data).

A tax refund isn't free money.

Generally, it's the result of taxes you've already paid, refundable credits you're legally entitled to, or both.

Scammers continue promoting schemes that involve fabricating or inflating federal income tax withholding to create a refund that doesn't actually exist.

The IRS specifically warns about schemes involving information reported on forms such as W-2s, 1099s, retirement distributions and other documents.

Here's the thing, the IRS receives copies of many of these forms too.

When the numbers on your return don't match third-party records, processing can be delayed while the IRS investigates.

And an improper refund claim can lead to much more than a delayed refund; you could also face penalties and interest.

Your tax return should report actual events; not numbers designed to produce the refund you want.

🚨 DIRTY DOZEN #9:
Non-cash charitable contribution schemes.

The IRS continues to scrutinize arrangements involving inflated valuations of donated property, including certain:

🏞️ Conservation easements
🎨 Artwork
🏠 Property
📦 Other non-cash assets

Charitable contributions are absolutely a legitimate part of tax planning.

Artificially inflating the value isn't.

If a promoter's primary sales pitch is:

“You'll get a deduction worth several times what you paid…”
then it's time to ask more questions.

Legitimate tax planning is based on the tax law, proper valuation, documentation and economic substance, not manufacturing deductions.

🚨 DIRTY DOZEN #8:

Ghost preparers.

Does Your Tax Preparer Sign Your Return? If not, you may have a ghost preparer.

A ghost preparer prepares a tax return but refuses to sign it or include their required Preparer Tax Identification Number (PTIN).

Why would someone do that?

Sometimes it's because they don't want their name associated with questionable deductions, inflated credits or fraudulent refunds.

🚩 Other warning signs:

• They base their fee on the size of your refund.
• They promise unusually large refunds before reviewing your records.
• They ask you to sign a blank return.
• They want your refund deposited into their account.
• They disappear after filing.

Remember:

Your name is on the tax return.

Even when someone else prepares it, you remain responsible for the information reported.

🚨 DIRTY DOZEN #7:
“Bogus “Self-Employment Tax Credit” promotion.”

The IRS is warning taxpayers about misleading promotions for a broad “Self-Employment Tax Credit.”

Promoters may make it sound as though simply being self-employed automatically qualifies you for thousands of dollars.

It doesn't.

Eligibility for tax credits depends on very specific provisions, facts and circumstances.

Before allowing anyone to submit your return with a credit claim:

✔️ Ask exactly which tax provision they're using.
✔️ Ask why you qualify.
✔️ Ask what documentation supports the claim.
✔️ Get a second opinion if the promise sounds unusually generous.

YOUR tax return is ultimately YOUR responsibility.

Don't let the promise of “free money” turn into an expensive IRS problem.

🚨 DIRTY DOZEN #6:
Abusive undistributed long-term capital gains claims.

The IRS is seeing an increase in questionable claims involving Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains. Form 2439 has a legitimate tax purpose for shareholders of certain regulated investment companies and real estate investment trusts.

The problem?

Promoters may encourage taxpayers to report inflated or completely fabricated amounts to generate improper refundable credit, including claims supposedly connected to organizations that aren't legitimate investment funds or REITs.

If someone presents you with an unfamiliar tax strategy promising a large refund based on investment income you don't recognize:

Ask where the numbers come from and have the strategy independently reviewed by a qualified tax professional.

A large refund isn't a win if you have to repay it, with penalties and interest.

Today, we honor the dedication, resilience, and hard work of everyone who help build stronger families, businesses, and communities.
"There is no job with a future in it; the future is in the one who does the job." - Eric Butterworth
Happy Labor Day from all of us at BELNAVIS!

🚨 DIRTY DOZEN #5:
Identity theft involving IRS Online Account access.
“Let me help you set up your IRS account.”
That offer may sound harmless, but be careful who you allow to “help.”

Criminals can use stolen personal information to attempt to access IRS Online Accounts. Others may pose as helpful third parties and ask taxpayers for sensitive information while supposedly assisting with account setup.
Your IRS account can contain valuable tax and identity information.

BELNAVIS TIP:
Create and access your account directly through IRS.gov.
Never provide passwords, verification codes, Social Security numbers or other sensitive information simply because someone contacts you offering assistance.

Think of your IRS Online Account like your online banking:
Protect the keys to the front door.

🚨 DIRTY DOZEN #4:
Misleading tax advice on social media.

Don't Get Your Tax Advice From TikTok!
“Here’s a tax loophole the IRS doesn’t want you to know about…”
“Use this form and get a HUGE refund…”
“Everybody qualifies for this tax write-off…”

🚩 Before you try that viral tax hack: STOP and verify it.
The IRS continues to warn taxpayers about false and misleading tax advice spreading on TikTok, Instagram, Facebook and other social media platforms.
Some posts encourage taxpayers to misuse real IRS forms, make up income or withholding, claim credits they don't qualify for, or report false information just to generate a bigger refund.

At the end of the day, you are responsible for what's on your tax return, even if you got the advice from social media.
Following a bad “tax hack” could result in:
- A delayed or denied refund
- Having to repay an improper refund
- IRS penalties and interest
- A $5,000 frivolous return penalty in some cases
- And potentially more serious consequences for intentionally filing false information

BELNAVIS TIP: Social media can be a great place to learn about a tax strategy. I recommend to ask a qualified tax professional whether it actually applies to your situation.

See something online that sounds like an amazing tax loophole? Verify before you file.

Day 2 at Tax Nerd headquarters, the IRS Tax forum in Orlando, FL. It was a very full and productive day.

🚨 DIRTY DOZEN #3:
Fake charities.Natural disaster. Family tragedy. Humanitarian crisis.

Scammers know that people are often most generous when emotions are high. Fake charities may use names and websites that closely resemble legitimate organizations. The goal is to steal your donation, or your personal and financial information.Before donating:
🔎 Research the organization.
🔎 Don't allow anyone to pressure you into donating immediately.
🔎 Be cautious about giving financial information to unsolicited callers or messages.
🔎 Verify that the organization is a qualified tax-exempt organization if you're expecting a charitable deduction.

https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizationshttps://www.irs.gov/ch… Generosity is a beautiful thing. Protect it with due diligence.

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