Charlotte Taxpayers Beware of Fake IRS Solicitations
Posted by Michael Beauchemin on Fri, Jul 22, 2011 @ 08:19 AM
The IRS just released an IRS Notice (IRS-2011-73) alerting taxpayers to some of the latest taxpayers scam. One scam they highlight is regarding unethical individuals persuading taxpayers to file false claims for tax credits or rebates.
Individuals behind these scams will start out with flyers or advertisements around churches and then allow "word of mouth" advertising to spread this illegal scheme. Members, believing they are assisting and helping fellow members, unknowingly share misinformation and help perpetuate these false filings.
The IRS Notice highlights what taxpayers should watch for.
"taxpayers should be wary of the following:
- Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.
- Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS.
- Unfamiliar for-profit tax services teaming up with local churches.
- Home-made flyers and brochures implying credits or refunds are available without proof or eligibility.
- Offers of free money with no documentation.
- Promises of refunds for "low income-No Documents tax Returns."
- Claims for the expires Economic Recovery Credit program or recovery Rebate Credit.
- Advice on claiming the Earned Income tax Credit based on exaggerated reports of self-employment income."
Tax filers pay these unethical individuals to file these claims. The victims eventually discover they have been duped when their false claims are rejected. By the time the tax filer discovers that they have been scammed, the perpetrator is long gone.
The IRS requires tax preparers to register and obtain a tax preparer identification number. Before engaging the services of a paid tax preparer, make sure they are registered and have a proper tax preparer identification number. Additionally, you may want to consult with a licensed professional such as an Enrolled Agent or CPA.
Finally, if you have any questions regarding tax credits or current scams, you should visit the IRS web site, www.IRS.gov, or call the IRS toll-free number 1-800-829-1040.