| Seniors are victims of cons more often than any other | | | | law. Unsuspecting investors lost thousands of dollars, |
| age group. Seniors tend to be more trusting, and less | | | | and Alpha Telecom filed for bankruptcy after being |
| apt to question someone who portrays himself as an | | | | investigated in at least twelve states. |
| "expert". Here are two common scams against | | | | Scam #2: Website Mall Scams |
| seniors that you should look out for! | | | | In a similar scam, a salesman offers to set up an |
| Scam #1: Disabled Access Telephone Scam | | | | internet "virtual mall." The internet mall supposedly |
| According to the IRS, a new tax scam has been | | | | qualifies the buyer for the Disabled Access Credit, and |
| uncovered. Con artists sell expensive coin-operated | | | | the scam promises huge profits from internet sales, |
| telephones to individuals. Then, the salespeople offer to | | | | which, of course, never materialize. The website |
| "lease back" the phones and service them for a fee. | | | | company sets up a "dummy" website and then |
| The unsuspecting "investors" are then charged | | | | charges the buyer an inflated commission. When the |
| outrageous amounts. According to the Federal Trade | | | | unsuspecting investor attempts to claim the tax credit, |
| Commission, the phones are often never delivered, and | | | | the IRS disallows the deduction. The investor is then |
| the fees continue to be charged anyway. | | | | liable for additional taxes and penalties. |
| The telephone salesman also informs the "investor" | | | | A Las Vegas telemarketing company, National Audit |
| that they qualify for IRS Disabled Access Credits; a | | | | Defense Network (NADN), is one of the companies |
| substantial tax break offered to businesses who invest | | | | involved in this "Virtual Mall" scheme. In 2004, NADN |
| in equipment and upgrades designed to make their | | | | filed for bankruptcy after the justice department |
| businesses more accessible to disabled individuals. The | | | | discovered that it had sold numerous abusive tax |
| phones do not qualify for the credit, and the victim is | | | | shelters, costing the US Treasury over $320 million |
| then also in trouble because of tax fraud. The | | | | dollars. The justice department obtained NADN's |
| responsibility for tax mistakes always lies with the | | | | customer list, allegedly comprised of 640,000 |
| taxpayer, regardless of where the information came | | | | taxpayers, all of which may have unknowingly |
| from. | | | | participated in an unlawful tax shelter. |
| Seniors are particularly vulnerable, because most of | | | | If you feel that you may have been a victim of an |
| them are unfamiliar with complex tax law. Seniors are | | | | abusive tax shelter, contact a tax professional |
| eager for passive income, since most are retired and | | | | immediately. Enrolled Agents, CPAs, and attorneys are |
| do not work. The scam artists promise to provide | | | | all qualified to represent taxpayers in an audit and in |
| enormous tax breaks and a steady income. Multiple | | | | tax court. They can file an amended return for you, |
| tax cases have been brought before the IRS | | | | and help represent you, if necessary. Enrolled Agents |
| regarding this scam. In at least three cases, the | | | | may be the least expensive of the three, because |
| company "Alpha Telecom" incorrectly advised | | | | they specialize only in tax. |
| investors that the pay phones qualified for a Disabled | | | | Remember, "if it sounds too good to be true, it |
| Access tax deduction. Alpha Telecom was cited by | | | | probably is! |
| the Federal Trade Commission for violating Federal | | | | |