How to Report Tax Scams
Promoters of tax avoidance scams are not only acting illegally, but they can put unknowing participants at risk of penalties and even jail time. The old saying “if it seems to good to be true, it probably is” certainly applies here, but plenty of celebrities have fallen prey to such schemes, including Wesley Snipes.
There are plenty of legitimate tax reduction techniques available, but when someone tells you he can help you avoid taxes altogether, I recommend running for the hills. You can also report the scam and its promoters to the IRS. Think of it this way – the less tax cheats out there, the more money our government gets, and theoretically, anyway, the less likely it is to raise taxes on the rest of us.