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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.)
Fax (803) 734 4299

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BEWARE TAX SCAMS


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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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