March 2, 2012

IRS Tax Scam Warning

Beware of Phony Refund Scheme Abusing Popular College Tax Credit

The Internal Revenue Service (IRS) is warning senior citizens and other taxpayers to beware of an emerging scheme tempting Americans to file tax returns with fraudulent refunds.

This scheme carries a common theme of promising refunds to people who have little or no income and normally do not have a tax filing requirement.

To avoid becoming ensnared in this scheme, the IRS says taxpayers should beware of any of the following:

  • Fictitious claims for refunds or rebates based on false statements of entitlement to tax credits.
  • Unfamiliar for-profit tax services selling refund and credit schemes to the membership of local churches.
  • Internet solicitations that direct individuals to toll-free numbers and then solicit social security numbers.
  • Homemade flyers and brochures implying credits or refunds are available without proof of eligibility.
  • Offers of free money with no documentation required.
  • Promises of refunds for “Low Income – No Documents Tax Returns.”
  • Claims for the expired Economic Recovery Credit Program or for economic stimulus payments.
  • Unsolicited offers to prepare a return and split the refund.
  • Unfamiliar return preparation firms soliciting.

To learn more about this scam and how to protect yourself, please read the Tax Scam Warning recently issued by the IRS.