Pages
Stay In Touch
More
© 2011 MLMAttorney.com - Sponsored by Jeffrey Babener
(Read Part One of this post here.) One leading business journal lists seven more red flags the IRS focuses on when looking to audit taxpayers:
1) Comparative size of deductions to each other. An item that is large in proportion to other deductions will draw more scrutiny.
2) Absolute size. A huge deduction, regardless of the accompanying deductions or the income shown on the return, will draw more scrutiny.
Continue reading »
How can you tell if a company is an pyramid scheme, fraudulent con game, or otherwise illegal? There is no single authority on the on the subject. However, there are certain “red flags” that can cause law enforcement agencies to investigate. These “red flags” can help you steer clear of illegal pyramid schemes:
- Promotions where the business opportunity is the product. If no legitimate product or service is being sold, but only the opportunity itself, chances are that it’s a pyramid scheme.
- Products are sold at inflated prices. Pyramid promoters try to mask their true intentions by selling a product. Often, the product will be vastly over-priced, and unlikely to generate much retail activity. This is a sure tip-off that the real “product” being sold is the compensation opportunity.
Continue reading »
Connect with MLMLegal.com!