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SOUTH
CAROLINA DEPARTMENT OF
CONSUMER AFFAIRS
3600
Forest Drive, 3rd Floor
P.O. Box 5757
Columbia, SC 29250
(803) 734-4200 or (800) 922-1594 (toll free in S.C.)
Teletips (803) 734-4215 or (877) 734-4215 (toll free in S.C.)
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BEWARE
TAX SCAMS |
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Ask
Consumer Affairs
Click
Below

Teletips
RECORDED CONSUMER INFORMATION
(803) 734-4215 or
(888) 734-4215 (toll free in S.C.)
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It is getting near tax preparation time again. Folks are getting
their W-2s and are thinking of what strategies they can use to
minimize the taxes they pay to Uncle Sam and the State of South
Carolina when April 15 rolls around.
In addition, many people feel very strongly
about taxes. They feel they are overtaxed and they do not
get benefits from the state and federal government services that
justify the taxes they are required to pay. This debate
dates back to before the revolutionary war when the Massachusetts
colonists revolted against the taxing of tea in the Boston Tea
Party.
Because the payment of taxes raises peoples'
blood pressure, if someone were to tell us simply we did not have
to pay taxes, we would be intrigued. Well, that is happening
now. Various groups in South Carolina and throughout the
nation have been teaching the principle that people really do
not have to pay income taxes. They cite various provisions
of the Constitution and statutes, often out of context, and arrive
at the conclusion that the assessment of income tax is merely
a conspiracy of the IRS-there is no provision of law that actually
requires people to pay income taxes. The notion is preposterous.
The Constitutional and legal implications of income taxation have
been repeatedly litigated since it was instituted near the turn
of the century. The courts have repeatedly upheld the legality
of income tax. Nevertheless, if a person is already angry
at taxes or at government, claims that taxes are not legal may
fall on fertile soil.
These claims are scams. As with most
scams, the victims have to buy something-a kit or a book with
instructions on how not to pay taxes, all at a cost of several
hundred dollars. One of the instruction books even ominously
advises its buyers on "What to do if you get arrested."
Yes, there's the rub. With most other
scams, you may not lose anything other than money. These
tax evasion scams are inviting you to do an illegal act.
Not only will you ultimately have to pay back taxes, you will
be subject to penalties, fines and possibly to prison.
The originators of one of the tax scams accumulated
over ten million dollars in victims money. They are both
now also serving lengthy prison terms.
If you have a problem with the tax policies
of the state or federal governments, take it up with your elected
representative. Do not succumb to a pitch that says for a price,
you can learn how the taxes are illegal. It is a lie, and will
lead you down a troubled path.
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