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Tax Fraud
Corporation Sole Statutes
It's true that religious groups are treated differently under the tax laws, but only
if they are legitimate and meet IRS guidelines. The Corporation Sole statutes, when
used as intended, allow religious leaders (usually bishops or parsons) to incorporate
as individuals in order to separate themselves legally from the control and ownership
of church assets.
But in this scam, con artists convince individuals to apply for incorporation under
false religious pretexts so that they, too, are entitled to exemption from federal
income taxes as a nonprofit, religious organization. The promise is Corporation Sole
provides an individual a legal way to escape paying federal income taxes, child support
and other personal debts. In addition to eventually running into trouble with the
IRS, victims of this scam also are usually out pre-filing money. Con artists have
been charging up to $1,000 or more per person to sell the details of this tax avoidance
scheme.
You need to do your own homework so that you are in compliance with the law. People
are easily sucked into these tax evasion schemes because it's quite natural for a person
to want to reduce their tax obligations. The scam artists running the seminars touting
these schemes capitalize on this desire by presenting very logical sounding cases for
their programs. They are just out to make a buck by getting you to first having you pay
to listen to their presentation or, even if the seminar is free, purchasing books, DVDs
or other materials.
If you've swallowed their tax scheme and purchased their packets or books or whatever
you've been scammed. If you follow their advice you become a criminal!
Ask Yourself a few Questions
Before you make what could be the biggest mistake of your life you should ask yourself a
couple of questions:
- If I do this am I hiding income or assets?
- Is the intention of doing this to evade paying taxes?
Answering "yes" to one or both of these questions means you are headed down a dangerous road.
If you see an ad saying that Corporation Sole laws provide a legal way to avoid paying
child support, income taxes or even debt by creating a tax exempt entity and hiding assets
in it you should just ignore it. Tax shelters and evasion are illegal. If you want to
make sure you pay only your "fair share" of taxes, seek out a tax professional. Relying
on the legal advice of shysters is a dangerous proposition at best.
Related Tax Scam Links:
IRS Free Online Filing
The "Dirty Dozen" Tax Scams
Tax Scams - How to Recognize and Avoid Them
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