Identity theft is an ever-growing problem, and one type that can be very damaging to small business owners and individuals is tax fraud. There are many different types of tax fraud, so make sure you are cautious whenever you are dealing with personal tax identification information.
One type of tax fraud is called abusive tax schemes, which involve elaborate offshore accounts and fake trusts. Be wary when dealing with a corporation or entity that deals entirely with offshore banks, as it is likely that they will receive payment and then never render the services they promised.
Another type of tax fraud is tax scams, which includes a wide range of scenarios from people stealing your information to receive your return to business owners engaging in illegal schemes to avoid paying the taxes they owe.
Whether you get tax help from a large tax organization, an individual accountant or you do your taxes yourself, always be cautious with your information.