"A fool and his money are soon parted."
Here are some scams involving legal issues. If any transaction
sounds to good to be true, it is! Before you give your credit card number over the phone, or before you
sign anything, call Ronald J.. Cappuccio, J.D., LL.M.(Tax), Counsellor at Law, at (856) 665-2121 or
E-Mail at Ron@taxesq.com
The Web Site Terms and Conditions Scam
The biggest web scam is hiding outrageous legal "gotcha's" in the Terms and Conditions section of the web site. A particularly egregious set is contained on the Equity Engine web site. This site purports to connect service providers and dot.coms --- but what a price. First, the site prohibits the user from talk to anyone, especially the press, about the site. It also claims that it owns all of the intellectual property produced by the professional for the dot.com. It also holds all of its information confidential and all of the user's information as public. Forget it!!
The Bank Wire Transfer Scam
A caller claims that in response to a computer malfunction, your bank is asking customers to transfer
their money to a "special account" which will ensure safety through the computer change and the
coversion of all computer systems. The caller then asks for your account numbers and authorization to
transfer your money to this "special account." The truth is there is no "special account" and the caller is
not from you bank. The caller users you account numbers to wire funds from your account to his.
The Nigerian Money Scam
First, you will receive an "urgent" or "confidential e-mail or letter as follows:
From:Dr.S------ A------
Tel/Fax:234-1-2------(Office)
Tel:234-1-7------(Home)
Lagos-Nigeria.
Attn: THE PRESIDENT/CEO.
STRICTLY CONFIDENTIAL BUSINESS PROPOSAL
RE: TRANSFER OF US$21.5 MILLION (TWENTY ONE MILLION,
FIVE HUNDRED THOUSAND US DOLLARS ONLY).
I am a member of the Federal Government of Nigeria
Contract Award and Monitoring Committee in the Nigeria
National Petroleum Corporation (NNPC)
Sometime ago, a contract was awarded to a foreign firm
in NNPC by my Committee. This contract was over
invoiced to the tune of US$21.5M. U. S. Dollars. This
was done deliberately. The over- invoicing was a deal
by my committee to benefit from the project. We now
want to transfer this money which is in a suspense
Account with NNPC into any Overseas Account which we
expect you to provide for us.
SHARE: -
For providing the account where we shall remit the
money into, you will be entitled to 30% of the money,
60% will be for me and my partners while 10% has been
mapped out from the total sum to cover any expenses
that may be incurred by us during the course of this
transfer, both locally and international expenses. It
may interest you to know that a similar transaction
was carried out with one MR. PATRICE M------R, President
of C-----e International Trading Corp. of 1------- East -7th
St., 2-th floor, NY10022, TEL: (212)-3--------- AND
TELEX: 6------. The deal was concluded and all
covering documents were forwarded to MR. MILLER to
authenticate the claim. Once the funds were
transferred, MR. M---- presented his Bank with all
the legal documents and remitted the whole funds to
another Bank Account and disappeared completely. My
colleagues were shattered, as such opportunities do
not come all the time.
I would require the following: -
1. Your Company's Name,Address,Tel & Fax Numbers.
2. Your Bank Account Number and Address where the
money will be remitted.
The above information would be used to make formal
applications as a matter of procedure for the release
of the money and onward transfer to your account.
It does not matter whether or not your company does
contract projects of this nature described here. The
assumption is that your company won the major contract
and subcontracted it out to other companies. More
often than not, big trading companies or firms of
unrelated fields win major contracts and subcontracts
to more specialized firms for execution of such
contracts.
We have strong reliable connections and contacts at
the Central Bank of Nigeria, as well as the Federal
Ministry of Finance and we have no doubt that all the
money will be released and transferred if we get the
necessary foreign partner to assist us in this deal.
Therefore, when the business is successfully concluded
we shall through our same connections withdraw all
documents used from all the concerned Government
Ministries for 100% security.
We are ordinary civil servants and we will not want to
miss this once in a lifetime opportunity to get rich.
We want this money to be transferred to the overseas
Accounts for us, before the present Democratic
Government starts Audditting all Federal Government
owned Parastatals.
Please contact me immediately through my telefax
number whether or not you are interested in this deal.
If you are not, it will enable me scout for another
foreign partner to carry out this deal. But where you
are interested, send the required documents
aforementioned herein through my above tel/fax number,
as time is of the essence in this business.
I wait in anticipation of your fullest co-operation.
Yours faithfully,
Dr.S--- A----
Tel/Fax:234-1-2-----(Office)
Tel:234-1-7------(Home)
The many variations on the theme are to get you bank account information to empty it out by wire transfer. (See the "wire transfer" scam above. Every year, some client rushes in with one of these letters. If you believe it, I know a guy that has a bridge for sale that connects Manhattan and Brooklyn...
The Bigger, Better Nigerian Money Scam
Will they never stop? Since the $29mil scam was too small, they have now come up with the $458 mil scam. Here is a sample email:
Click Here for More Information!
The "Liberian Twist" to the Nigerian Money Scam
For the mere storage fee of $2500 per year for 10 years, you could have $100million cash.....
Click Here for More Information!
Nice Try Angola - the Savimbi version of the Nigerian Scam
Why should the Nigerians have all the fun!
Click Here for More Information!
Why get only 25% from the Nigerians
when the Philippinos will give you 40%?
Click Here to Help a poor widow!
God is Making me Scam you!
The "saved" scam-artist of Nigeria
Click here if you believe!
There are TOO Many More to List!
Here are some more versions of the Nigerian Scam
The "Wages are Not Income" and "US Citizens" Scam
is slammed by the IRS
Notice 2001-40
Source: United States. Internal Revenue Bulletin
Publication date: 2001-06-25
Arrival time: 2001-09-12
Part III. Administrative, Procedural, and Miscellanous
Frivolous Filing Position Based on Section 861
The Internal Revenue Service and the Treasury Department are aware that certain persons are promoting the view that U.S. citizens and residents are not subject to tax on their wages and other income earned or derived within the United States based on the claim that the Internal Revenue Code imposes taxes only on income derived from certain foreign-based activities. The Service and Treasury are issuing this notice to inform taxpayers that this reporting position has no basis in law.
The proponents of this position misread the Code and the Treasury Regulations. Although the proponents acknowledge that section 1 imposes income tax on "taxable income," that "taxable income" consists of "gross income" minus deductions (section 63) and that "gross income" is income "from whatever source derived" (section 61), they assert that sections 861 through 865 of the Code and the regulations thereunder (in particular, Treasury regulation section 1.861-8) limit taxable "sources" of income to certain foreign-based activities.
That assertion is refuted by the express and unambiguous terms of the Code. Section 61 includes in gross income "all income from whatever source derived." As the Supreme Court stated in Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429 (1955), "Congress applied no limitations as to the source of taxable receipts . . . ." Nothing in sections 861 to 865 of the Code limits the gross income subject to United States taxation to foreign-source income. The rules of sections 861 through 865 have significance in determining whether income is considered from sources within the United States or without the United States, which is relevant, for example, in determining whether a U.S. citizen or resident may claim a credit for foreign taxes paid. See GreatWest Life Assurance Co. v. United States, 678 F.2d 180, 183 (Ct. C1. 1982) (stating that "[t]he determination of where income is derived or 'sourced' is generally of no moment to either United States citizens or United States corporations, for such persons are subject to tax under LR.C. 1 and LR.C. 11, respectively, on their worldwide income" and that "[likewise, the income of a resident alien individual is taxed under LR.C (sec) 1 without regard to source"). The source rules do not operate to exclude from U.S. taxation income earned by United States persons from sources within the United States. Williams v. Commissioner, 114 T.C. 136 (2000) (rejecting the claim that income was not subject to tax because it was not from any of the sources listed in Treas. Reg. sec. 1.861- 8(a)); Aiello v. Commissioner, T.C. Memo. 1995-40 (1995) (rejecting the claim that section 861 lists the only sources of income relevant for purposes of section 61).
The courts have categorically rejected contentions that U.S. citizens are not lawfully subject to Federal income tax on their income from all sources and have upheld criminal convictions of individuals who based their refusal to pay Federal income tax on such contentions. See, e.g., United States v. Condo, 741 F.2d 238 (9th Cir. 1984).
The Internal Revenue Service and the Treasury Department advise taxpayers that if they file returns reflecting this theory that only certain foreign-source income is taxable, they may be subject to penalties including, but not limited to, the accuracy-related penalty under section 6662 and the frivolous return penalty under section 6702. Under some circumstances, taxpayers adopting this position on tax returns may be subject to additional sanctions, including failure to file or pay penalties under section 6651 and civil fraud penalties under section 6663, and may be prosecuted for criminal violations of the tax law. In addition, practitioners advocating this position may be subject, under some circumstances, to the return preparer penalty under section 6694 or aiding and abetting penalties under section 6701, and may be prosecuted for criminal violations of the tax law.
The Internal Revenue Service and the Treasury Department recognize that some taxpayers may have chosen not to file or have filed incorrect tax returns, taking the position that they were not required to report wages or other income earned in the United States for taxation. We advise these taxpayers to take prompt action to file correct returns and to comply with the tax laws. Taxpayers can obtain tax forms, including those necessary to amend previously-filed returns, via the IRS web site (http://www.irs.gov), obtain them through the IRS' TaxFax Services (from a fax machine call: 703-368- 9694 (not a toll-free number)), or order the forms by phone: 1-800- TAX-FORM (1-800-829-3676).
Copyright Superintendent of Documents Jun 25, 2001
Publication date: 2001-06-25
See also the Irwin Schiff "we are not citizens" scam
Irwin Schiff is Shut Down for Fraud!
The Black Inheritance Scam
African-Americans are being bilked by a phoney "service" claiming to provide information on obtaining IRS funds through a "Black Tax Inheritance" Rebate. This is a scam!
The "service" charges $50 to $250 for the information and help with the claim for the non-existent "refund." Anyone filing such a claim is subject to penalties from the IRS!
Please Note:
There is no such thing as Black Inheritance Tax Credit. It is a FRAUD!
I am not sure how the scammers profit other than by an application fee. It is obviously a scam because it is simply NOT TRUE! There is no Black Inheritance Tax Refund. Please note, there is no Federal INHERITANCE tax in the first place. The US has an ESTATE tax. The States have Inheritance taxes. There is no such credit anywhere!
The Bigger, Better Black Inheritance Scam
PLEASE DO NOT CALL US!
My office is getting inundated with calls from people asking about the scam. I am a solo attorney and my office cannot handle your call. Nevertheless, believe me, this is a SCAM!
Click Here for More Information!
The "Pay No Tax" Scam
Phoney "Common Law Trusts"
The Aegis Trust Scam is Shut Down! Click Here for More Info!
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