- The Internal Revenue Service announced it will investigate U.S. citizens in connection with a charity tax scandal in Liechtenstein. Foundations in Liechtenstein are not required to serve a charitable purpose and are allowed to give money to founders or their family members, and a number of European citizens stand accused of using those foundations to avoid taxes. The IRS announced last week that it suspects more than 100 Americans have done the same.
- Tax rebates approved last month by the federal government to stimulate the economy have also stimulated tax-rebate scams aimed at nonprofit groups. The Internal Revenue Service has warned charities to watch out for a fraudulent e-mail message that appears to be from the IRS and promises a quick rebate.
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The message asks people to click on a link to a “refund claim form” and enter personal information that could be used to gain access to bank or other financial accounts.
The IRS warns charities that the rebate scams will probably continue through at least May, when the government will begin issuing rebate checks up to $600 per individual.
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