NEW DELHI (AP) – Indian police have arrested 70 people and are questioning hundreds more after uncovering a massive scam to cheat thousands of Americans out of millions of dollars by posing as U.S. tax authorities and demanding unpaid taxes, a police officer said Thursday.

According to police in Mumbai, the yearlong scam involved running fake call centers which sent voice mail messages telling U.S. nationals to call back because they owed back taxes.

Those who called back and believed the threats would fork out thousands of dollars to “settle” their case, Mumbai police officer Parag Marere said Thursday.

The scam brought in more than $150,000 a day, Marere said without giving a total sum. If the scam netted that amount daily, it would have made almost $55 million in one year.

Some victims were also told to buy gift vouchers from various companies, and hand over the voucher ID numbers which the impostors then used to make purchases, Marere said.

Police said they are likely to file charges against many of the 600 or more people still being questioned on suspicion of running the fake call centers, housed on several stories of a Mumbai office building.

Those arrested so far include several of the alleged ringleaders, as well as people accused of providing equipment and setting up the fake call centers. The criminal charges filed against the suspects include extortion, impersonation and violations of India’s information technology laws.

“We are questioning those who were involved in the fraud, including those posing as tax investigators,” Marere said.

Police raided the offices this week and seized hundreds of hard disks, hard disks, high-end servers and other electronic equipment.

Indian media reports said 70 percent of the scam’s proceeds were retained by the suspects in India, while the rest was paid to collaborators in the U.S.

Indian news broadcaster NDTV reported that one U.S.-based company allegedly collected the victims’ personal information and passed it to the fake call centers.

The IRS reports receiving more than 900,000 complaints about similar scam calls since October 2013. More than 5,000 people have fallen for the scam, paying out more than $26 million collectively as a result of scams.

The IRS has yet to comment on this recent arrest in India.

The IRS warns it will never call and demand immediate payment. It will never require you to use a specific payment method for your taxes, like a gift card or prepaid debit card. The agency will never ask for credit card numbers over the phone.

If you receive a call from someone claiming to be from the IRS and asking for money, you should never give out personal information. Report the call to the IRS using their “IRS Impersonation Scam Reporting” web page. You can also call 800-366-4484.

If, however, you or your business owes more than $10,000 in back taxes, contact Direct Tax Relief for a free, no-obligation consultation. Our team of tax attorneys can work with you to develop a strategy to resolve your IRS and state tax debt with a tax relief program. Leverage our ten years of experience and 95% success rate and achieve a custom tax resolution for your situation.

The post Dozens arrested at India call center linked to IRS scam calls appeared first on Direct Tax Relief.

After the rejection, Direct Tax Relief filed an immediate request with the National Taxpayer Advocate’s office to reopen the unwarranted dismissed case. For nine months, Direct Tax Relief persistently worked with three separate advocates until the IRS finally agreed to re-examine the initial Offer in Compromise. After careful review, a newly assigned Offer Examiner approved the initial debt settlement proposal! In the end, James was able to settle his IRS debt for roughly $200.

That’s right—from $118,000 down to $200 via an IRS Offer in Compromise. That is cause for celebration!

Even when things didn’t look good, Direct Tax Relief never stopped pursuing (and yes, pestering) the IRS for the debt relief it knew James deserved. And, in the end, it was all worth it.

If you owe back taxes on your income, contact Direct Tax Relief and learn about the IRS tax relief programs including IRS payment programs and the Corona Virus Tax Relief.  For example, the American Rescue Plan Act of 2021 introduced tax relief for individuals and employers.

*Information on this website, including real-life case examples, is not intended to guarantee, warranty or predict the outcome of a particular case, and it should not be construed as a guarantee, warranty or prediction. Financial information including, but not limited to, income, assets, equity, and supporting documentation will affect the specific and unique resolution options available to each client. Some names and identifying details have been changed to protect the privacy of the individuals.

The post James* Owed Over $118K to the IRS—But Not Anymore! appeared first on Direct Tax Relief.

1. Restrictions on Travel

Luckily for Iggy, she’s got an Australian passport. For U.S. citizens owing over $50,000, traveling may not come so easily. With the new IRS passport law, individuals with this sizeable debt (and that includes fees and penalties) will now find themselves unable to travel using their passports. And this won’t just affect international visits. Thanks to non-compliance with the controversial Real ID Act, citizens living in Minnesota, New Hampshire, New York, and Louisiana may soon be unable to travel domestically without an approved passport.

2. A Tax Lien

One of the biggest tax debt penalties concerns tax liens. A standard tax lien lasts for 10 years and can be extended if the IRS chooses. Tax liens will lower credit scores and prevent real estate closings. They are also on public record, so they can possibly threaten employment opportunities and be a general embarrassment to your reputation. Iggy’s fame may make it easier to deal with the credit, employment, and real estate side of the equation, but, if you follow the celeb on Twitter, the embarrassment of such a giant lien is still pretty evident.

3. Lots of Fees

Iggy is currently paying her debt in installments. If she ends up failing to pay, she may face another one of the big tax debt penalties: giant fees. In fact, if Iggy fails to pay, she could end up owing thousands of dollars a month in late payment fees. It might temporarily feel less stressful to ignore your tax debt, but just as with so many things in life, the problem will simply compound.

So how does someone like Iggy Azalea end up owing $400,000 to the IRS?

While she may be high-profile (and highly paid), Iggy’s story is similar to many people in the U.S. who find themselves in debt to the IRS. Like any self-employed individual, she may not have known exactly when her next check would come or how much she would end up owing, so she didn’t hold anything back. It could also be that Iggy didn’t have the necessary financial counsel to advise her on what to spend, what to save, and what she’d owe. One thing is for sure, her mistakes are something any of us could make.

Have you found yourself overwhelmed by tax debt? Are you living in fear of these tax debt penalties? Don’t bury your head in the sand. Instead, contact Direct Tax Relief for IRS tax resolution services at 1-877-505-4829.

Sources:

• https://www.nydailynews.com/entertainment/gossip/iggy-azalea-hit-hefty-tax-lien-article-1.2587669
• https://www.forbes.com/sites/robertwood/2016/04/05/iggy-azaleas-400000-irs-tax-lien-dims-10-carat-ring-but-irs-cant-revoke-her-passport/?sh=66df32a32c57

The post Iggy Azalea Owes $400,000 to the IRS. See 3 Possible Tax Debt Penalties She Could Be Facing appeared first on Direct Tax Relief.

The IRS reported that as of April 18, 2014, the IRS has received more than 131 million returns, of which 88 percent were e-filed. Of those 131 million returns 94,809,000 were due refunds (IR 2014-56).

“That means,” noted DTR’s senior enrolled agent and former IRS revenue officer Maurice Rosaler, “that over 36 million returns already filed this year with the IRS had balances due.”

“So here we already have 36 million taxpayers who owe for the tax year 2013,” pointed out Rosaler who was with the IRS for over eighteen years as a revenue officer and manager, “with another 12 million-plus applying for extensions (IR-2014-49, April 10, 2014). My experience has shown that many of taxpayers who file extensions expect to owe when they do file so that indicates millions more individuals and couples will end up owing back taxes for 2013.”

For instance pointed out DTR’s senior enrolled agent who has been doing tax resolution now for 27 years, in 2012 148,390,000 returns were filed with 110,470,000 due to refunds leaving 37,920,000 returns with balances due and tax year 2013 is on about the same pace.

“That means there are tens of millions of people,” continued Rosaler, “who is going to end up owing the IRS back taxes and don’t know what to do next. Yes, some can pay the balance off but the majority most likely cannot and many of those people will be anxious about what happens next and what their options are and what the IRS can do to them to collect on the delinquent tax.”

Most taxpayers don’t know that there are alternatives available to them if they can’t pay their taxes explained Rosaler.

“The IRS,” Rosaler went on, “is looking out for its best interest and basically wants full pay on the back tax as quickly as possible and does not go into the details of the other options available to taxpayers.”

Rosaler elaborated on some of those options available to taxpayers who have filed their returns but owe on the tax due including extensions to pay; various payment plans depending on the amount of the tax owed and the taxpayer’s financial status; reduction of the liability through penalty abatement; and settlement on the balance due for less than what is owed which is known as an Offer in Compromise.

“Most people don’t know the difference or their options,” said the senior enrolled agent, “and don’t know what to do to handle this crisis in their lives as owing the IRS back taxes is a crisis. This really is rather complicated and the best way to handle it is to get professional help by looking for and retaining a trusted tax relief firm with attorneys and enrolled agents who specialize in the field of tax resolution. The best way is to look for an authentic tax relief firm like Direct Tax Relief which is listed with the BBB with an A rating and zero complaints.”

“The other thing to remember,” Rosaler warned, “is that if you don’t address the issue of owing back taxes and make arrangements then the IRS can take collection action against you such as levy action including attaching your bank accounts or garnishing your wages as well as filing liens against you and your property.

“Tax professionals can help you avoid that,” the 27-year tax resolution veteran stated, “or if your case has already gone that far and the IRS has already levied you or filed liens a tax resolution expert like the ones here at DTR can help and get that garnishment or attachment released and the liens are withdrawn.”

“If you file your return,” concluded Rosaler, “and you owe and can’t pay remember you’re not alone. Last year almost 38 million others had the same problem and for 2013 the number is already at 36 million.

Don’t panic and then do get help from a tax professional. Keep in mind the IRS is looking out for the best interest of the government and you want to get someone to look out for your best interest.”

Direct Tax Relief has extensive experience as a tax debt resolution company and has represented numerous clients since 2007 providing professional legal tax advice to resolve tax matters including Offer in Compromise, levy and garnishment release, appeal penalties, and establishing minimal payment plans to the government.

Sources:

• https://www.irs.gov/newsroom/with-131-million-returns-filed-millions-of-amended-returns-expected
• https://www.irs.gov/pub/irs-news/IR-14-049.pdf
• https://www.irs.gov/newsroom/2012-end-of-year-filing-season-statistics

The post IRS Announces 131 Million Returns Already Filed This Season – 36 Million Owe Balances Due appeared first on Direct Tax Relief.

Direct Tax Relief can prepare past returns using various substitute sources when there are missing records. Those returns should be filed as soon as possible in order to avoid accumulated compounding interest and large penalties.  You should also be aware that if returns have not been filed in the most recent three tax years, those returns should be prepared immediately in order to claim any refunds that may be due.

Not filing a tax return is far worse than filing a tax return and not being able to pay the tax amount owed. If you file a tax return but cannot pay, Direct Tax Relief has many IRS tax debt solutions to help you pay the tax amount owed. If you do not file a tax return it is considered a crime and you can be punished for it. Not filing a tax return can result in a fine of up to $25,000 and a 1-year prison sentence for each unfiled tax year. Recently, the actor Wesley Snipes was convicted of failure to file tax returns for 3 years and sentenced to 3 years in prison.  Avoid costly IRS penalties from unfiled tax returns, contact Direct Tax Relief for certified tax preparation and filing services, and receive the maximum refund and deductions you deserve.

The post What is Preparing Unfiled Tax Returns? appeared first on Direct Tax Relief.