Apple Inc. (AAPL), Cisco Systems, Inc. (CSCO), Oracle Corporation (ORCL), and Seven Tax Scams You Can’t Afford to Fall For

Page 2 of 2

4. Fake Social Security refunds.
Many con artists target the elderly with promises of Social Security refunds or rebates, offering to help them claim nonexistent money from the IRS in an effort to obtain personal information. As appealing as it can sound to get a refund back, most of these promises are patently false. If you don’t know someone who approaches you about such a scheme, the odds are good that it’s too good to be true, and you need to protect yourself when the criminal inevitably wants your personal information.

5. Fake charities.
The most egregious scams involve taking advantage of people giving to charity. Criminals set up fake charities and take donations, only to pocket the cash. To make sure a charity is legitimate, the IRS offers this charity search tool that lists approved charities.

6. Frivolous-argument schemes.
Every year, some tax opponents argue that income tax is unconstitutional or otherwise illegal for the IRS to collect and therefore claim incorrect returns showing no tax owed. Using frivolous tax arguments won’t save you in the long run, though, and will only get you in trouble. Click here to see a list of frivolous tax arguments to avoid.

7. Phishing.
Phishing involves electronic communications that appear to be from the IRS requesting tax information. The key way to avoid phishing is to understand that the IRS never initiates contact by email, text messages, or social-media sites. If you get an attempted phishing contact, you can help the IRS fight criminals by reporting it.

Criminals don’t quit on April 15
These tax scams can strike at any time of the year, so you have to remain vigilant even after April 15 has come and gone. By taking the right steps, though, you can hold the criminals at bay and protect yourself from scam artists.

The article 7 Tax Scams You Can’t Afford to Fall For originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Apple. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Apple and Cisco Systems. and owns shares of Apple and Oracle.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Related tickers: Apple, Cisco, Oracle

Page 2 of 2