Wednesday, April 15, 2009
The IRS has published a "dirty dozen" list of tax scams taxpayers should avoid. These include things like phishing and hiding income offshore. Number 4 on the list is "Abuse of Charitable Organizations and Deductions." The abuse identified includes attempts by donors to improperly shield income or assets, attempts by donors to maintain control over assets, and overvaluations involving non-cash assets. The IRS also notes schemes under which a charity agrees to take a donation with the understanding that the donor can buy back the asset later, at a price set by the donor. The IRS reminds taxpayers of increased penalties for inaccurate appraisals.