WGN-TV Show Notes — January 03, 2002

ANCHOR: WOULD YOU LIKE TO PAY LESS IN TAXES? SURE. WHO WOULDN’T?

ANCHOR: THERE ARE VERY FEW LEGAL WAYS TO CUT YOUR TAX BILL, BUT SCAMS ABOUND. MONEY AND REAL ESTATE EXPERT ILYCE GLINK IS HERE WITH A FEW TAX SCAMS YOU’LL WANT TO AVOID WHEN PREPARING YOUR TAXES.

GOOD MORNING.

ILYCE: {ONCAM} WHEN PREPARING YOUR TAX RETURN, IT’S EASY TO GET SIDETRACKED BY PROMISES OF HEFTY REFUNDS. THIS TAX SEASON, CON ARTISTS ARE OUT IN DROVES, TRYING TO REEL IN A FEW UNSUSPECTING TAXPAYERS.

FALLING FOR A TAX SCAM COULD BE A DOUBLE WHAMMY. NOT ONLY WILL YOU LOSE MONEY, BUT YOU COULD GET IN TROUBLE WITH THE I-R-S FOR FILING A FALSE TAX RETURN, SAYS TAX PREPARER PAUL WICKLIFF.

“IF IT SOUNDS TOO GOOD TO BE TRUE, IT IS,” WICKLIFF SAID.

ONE OF THE BIGGEST SCAMS IS THE SLAVERY REBATE. HERE’S HOW IT WORKS: SOMEONE CALLS YOU AND TELLS YOU FOR A FEE OF $100, THEY’LL FILE FOR THE SLAVERY REBATE ON YOUR BEHALF, AND YOU’LL RECEIVE A BUCKETFUL OF MONEY. BUT DON’T TRY IT.

“IF YOU HAVEN’T ACTUALLY SEEN IT ON TV AND SAID, THIS IS A NEW LAW, OR THIS HAS BEEN PASSED BY CONGRESS, THEN IT’S NOT TRUE,” WICKLIFF SAID.

YOU MIGHT HEAR THAT YOU CAN GET A REFUND ON YOUR SOCIAL SECURITY PAYMENTS. NO WAY.

“THAT WOULD ABSOLUTELY BE A SCAM. YOU WANT TO PAY INTO SOCIAL SECURITY. YOU ARE INVESTING FOR DOWN THE ROAD. THAT’S WHAT WE TELL CLIENTS,” WICKLIFF ADDED.

AND THEN THERE ARE THE ADS THAT PROMISE: “I CAN GET YOU A BIG REFUND.”

“THEY CAN’T GUARANTEE, BUT THE ADS THAT ARE OUT THERE, THEY TELL YOU ENOUGH TO GET YOU TO CALL. ….. IT’S JUST ENOUGH TRUTH TO GET YOU TO BELIEVE THAT THIS APPLIES TO YOU,” WICKLIFF SAID.

AND WHAT IF AN IRS AGENT KNOCKS ON YOUR KITCHEN DOOR? TAXPAYER BEWARE.

“DON’T LET THEM IN,” WICKLIFF STATED. “THEY WILL GENERALLY CALL FIRST OR THEY WILL HAVE WRITTEN. IF THEY’RE AT YOUR DOOR, YOU PROBABLY KNOW WHY. IF THEY CALL OR SHOW UP AND YOU HAVE NO IDEA WHY, DON’T LET THEM IN.”

AND FOR $5,000 TO $7,000, SCAM ARTISTS SAY THEY CAN SHOW YOU HOW TO PUT YOUR ASSETS IN TRUST AND NEVER PAY TAXES ON THEM AGAIN.

“TRUSTS, PARTNERSHIPS, THOSE WERE BIG IN THE 1970s,” WICKLIFF SAID. “I WOULDN’T BELIEVE THAT AT ALL. IF SOMEONE WOULD MAKE A STATEMENT LIKE THAT, I’D PRETTY MUCH DOUBT THEIR CREDENTIALS.”

AND THEN THERE’S THE PHONY HOME-BASED BUSINESS DEDUCTION. THIS SCHEME CLAIMS TO OFFER TAX RELIEF BY SETTING UP A PHONY HOME-BASED BUSINESS. IN REALITY, IT’S ILLEGAL TAX AVOIDANCE. EVEN IF YOU HAVE A REAL HOME OFFICE, THE DEDUCTION MAY NOT BE WORTH IT.

“IF YOU RENT, THEN YOU WRITE OFF THE SQUARE FOOTAGE AND UTILITIES. IF YOU OWN, THEN THE RECAPTURE GENERALLY ISN’T WORTH IT,” WICKLIFF SAID.

FINALLY, WHAT ABOUT THOSE ADS THAT PROMISE YOU CAN AVOID TAXES FOREVER? THIS MAY BE THE BIGGEST SCAM OF ALL. FEDERAL LAW REQUIRES THAT YOU FILE A TAX RETURN EVERY YEAR.

“IF SOMEONE CALLS YOU ON THE PHONE AND PICKS YOU OUT, THEN IT’S GENERALLY TOO GOOD TO BE TRUE,” WICKLIFF ADDED.

TAG: IF YOU HAVE ANY QUESTIONS ABOUT YOUR RETURN, YOU CAN CALL THE IRS OR YOUR TAX PREPARER. AND IF SOMEONE SHOWS UP AT YOUR DOOR CLAIMING TO BE FROM THE IRS, YOU CAN CALL THE TREASURY INSPECTOR GENERAL’S HOTLINE AT 800-366-4484

FOR MORE TAX INFORMATION, VISIT WWW.TAXPLANET.COM

March 12, 2002.