• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Fraud Guides

Fraud Guides

Investment Schemes, Internet Scams & Consumer Fraud

  • Car Scams
  • Consumer Fraud
  • Internet Fraud
  • Investment Scams
  • Tax Scams
  • Telemarketing Scams
You are here: Home / Tax Scams / Abusive Roth IRAs

Abusive Roth IRAs

Don’t listen to bad advice concerning your Roth IRA or you could wind up in a world of hurt

There are some new items on this year’s IRS “Dirty Dozen” Tax Scams for 2007 and one of them concerns the popular Roth IRA. A “Roth” IRAs is an IRA that allows for tax-free withdrawals as long as the contributions remain in the account for five years, and the account holder meets on e the of the following: age 59 1/2, death, disability or first-time home purchase.

There’s nothing fishy about Roth IRAs in general. For many a Roth IRA is the only way to fly and, when the rules are followed, the IRS has no problem with them. This year the IRS has seen enough cases of Roth IRA fraud to put it on the Dirty Dozen list. This is what they had to say:

Abusive Roth IRAs:

If your tax adviser recommends shifting under-valued property to a Roth Individual Retirement Account (IRA), then it’s time to get a new advisor. One example of abuse has a consultant telling a taxpayer to shift under-valued common stock to a Roth IRA. This allows the taxpayer to get around the annual maximum contribution limit, causing income that normally would have been taxed to go untaxed.

Don’t listen to bad tax advice!

People selling this kind of idea don’t have a lot at stake themselves. They’re just peddling books and investment programs. Identifying the ones that could land you in hot water is your job. When you file your taxes you sign on the line and take responsibility for what you’re sending the IRS. You can’t blame the shyster that sold you on the idea in the first place.

Before trying something like this ask a friend who you respect and trust or a professional accountant. Getting bad tax advice is a classic. Don’t become someone else’s cautionary tale.

Subscribe
Login
Notify of
0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

  • Car Scams
    • Buying a Used Car
    • Car Airbag Scams
    • Car Dealership Scams
    • Car Insurance Accident Scams
    • Car Insurance Company Practices
    • Car Insurance Referral Scams
    • Car Leasing Scams
    • Car Prep Fee Scams
    • Car Repair Scams
    • Car Title Loans
    • Car Title Washing Scams
    • Car Warranty Scams
    • Curbstoning Scams
    • Finance A Car
    • Gas-Saving Scams and Tips
    • Odometer Rollback Scams
    • Parking Lot Scams
    • Risky Credit Rating Car Financing Scam
    • Spot Delivery Scam
    • Towing Scams
    • Water Damaged Cars
  • Consumer Fraud
    • Affinity Fraud
    • Airline Ticket Scams
    • ATM and Debit Card Fraud
    • Bankruptcy Fraud: The Ultimate Guide
    • Bird Flu Scams
    • Check Fraud
    • Consumer Credit Fraud
    • Contest Scams
    • Credit Card Fraud
    • Credit Card Skimming
    • Credit Card Validation Code Scam
    • Debt Elimination
    • Food Stamp and SNAP Fraud
    • Fraud Protection Tips
    • Gift Card Fraud
    • Home Business Scams
      • Assembly and Crafting
      • Envelope Stuffing
      • Medical Billing
      • Multi-Level Marketing
      • Reshipping
      • Turnkey Websites
    • Home Repair Scams
    • Hospice Medicare Fraud
    • Hospital Billing Errors
    • Hotel Scams
    • Identity Theft
    • Improving Credit Score
    • Inheritance Scams
    • Living Trusts
    • Locksmith Scams
    • Lottery Scams
    • Manufacturer Rebate Fraud
    • Medicaid Fraud
    • Medical Insurance Scams
    • Modeling Agency Scams
    • Mortgage Appraisal Fraud
    • Mortgage Foreclosure Rescue
    • Moving Company Scams
    • Mystery Shopper Scams
    • Online Banking
    • Optoutprescreen.com
    • Phony Charities
    • Product Counterfeiting
    • Real Estate Closing Fees Kickback
    • Rent to Own
    • Rental Scams
    • Scholarship Scams
    • Sweepstakes Scams
    • Travel Scams
    • Weight Loss Scams
    • Welfare Fraud
  • Internet Fraud
    • Advance Fee Scams
    • Adware
    • Auto Dialers
    • Counterfeit Money Orders
    • Craigslist Scams
      • Craigslist Apartment Rental Scams
      • Craigslist Car Scams
      • Craigslist Escrow Service Scams
      • Craigslist Ticket Scams
    • Detect Spoofed Emails
    • Ebay Scams
    • Fake Escrow Sites
    • Firewall
    • Internet Security
    • Lottery Scams
    • Nanny Scams
    • Nigerian Check Scams
    • Nigerian Email Scams
    • Online Auction Scams
    • Online Dating Scams
    • Phishing
    • Spyware
  • Investment Scams
    • Bank Fraud
    • Bulk Mail Ponzi Schemes
    • Business Opportunity Scams
    • Forex Currency Trading Scams
    • Gold Financing Agreement Scams
    • Investment Scams Targeting Seniors
    • Mining Investment Scams
    • Multilevel Marketing (MLM) Plans
    • Oil and Gas Investment Scams
    • PIPs PureInvestor Scam
    • Ponzi Schemes
    • Prime Bank Scams
    • Pump and Dump Schemes
    • Pyramid Schemes
    • Short and Distort Stock Scams
  • Tax Scams
    • Abusive Roth IRAs
    • Corporation Sole Statutes
    • Credit Counseling Tax Schemes
    • Dodging Your Taxes
    • Home Business Tax Schemes
    • Illegitimate Trusts
    • IRS Scams
    • IRS Audit Red Flags
    • Not Withholding
    • Offshore Tax Havens
    • Offshore Tax Shelters
    • Sharing Tax-Credit Dependents
    • Tax Fraud – Terminology
    • Tax Professional Preparer Scams
    • Tax Protesting
    • Tax Refund Anticipation Loans
    • Tax Return Fraud
  • Telemarketing Scams
    • 809 Area Code Scam
    • Boiler Room Schemes
    • Do Not Call Registry
    • Fax Scams
    • Federal Telemarketing Regulations
    • Government Grant Money Scams
    • Magazine Sales Scams
    • Office Supply Scams
    • Phone Phishing
    • Phony Charity Telemarketing
    • Recovery Room Scams
    • Rip and Tear Schemes
    • State Do-Not-Call Registry
    • Telephone Company Cramming Fees
    • Travel Scams
  • Lemon Laws
  • Report Fraud
  • Sitemap
  • Contact Us

Scam Alerts!

  • Bank Fraud: The Ultimate Guide

  • Bankruptcy Fraud: The Ultimate Guide

  • IRS Fraud and Scams: The Ultimate Guide

  • How to Avoid Paypal Scams and Protect your PayPal Account

  • Craigslist Ticket Scams

Copyright © 2021. Fraud Guides. All Rights Reserved.

  • Privacy Policy
  • Sitemap
  • Contact Us
wpDiscuz