Wealth Preservation, Trusts and Estates

David M. Frees III on a Asset Protection

It is that time of year when the IRS publishes warnings about tax fraud to try to keep the tax payers honest. And, it is also that time of year, when faced with increasing tax liabilities, many tax payers update their estate and asset protection planning and look for opportunities for tax savings as well as the opportunity to shelter assets from frivolous lawsuits.

However, as many of the articles below will confirm, there are unscrupulous “salesmen” who tempt tax payers with tax devices and “asset protective” investments that are just too good to be true.

So, how do you know of that proposed tax advantaged investment is a scam, borderline or flat out illegal?

Here are a series of articles that give you some of the warning signs of a dangerous sales pitch. The danger signs include, but are not limited to: tax investments that radically change your return ( a red flag to the IRS as well), investments where you are prohibited from getting a second opinion by a non disclosure agreement, returns or results that are simply too good to be true, and many more.

In any case, be sure that you really know the law, get good advice, and do your due diligence before investing in any type of investment promising tax results that are too good to be true.

Warning Signs of Bad Tax Investments from the New York Times

The Eight Warning Signs of Tax Fraud in Your Asset Protection