IRS Issuing Warnings Potential Victims To Schemes
The IRS issued a report claiming that tax schemes are running rampant across the US, including Louisiana. They say that the scheme may consist of an individual trying to persuade them to file false claims for tax credits or rebates.
“Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities,” said IRS Spokesman, Dee Harris Stepter. “Unscrupulous promoters deceive people into paying for advice on how to file false claims. Some promoters may charge unreasonable amounts for preparing legitimate returns that could have been prepared for free by the IRS. In other situations, identity theft is involved.”
Promoters seem to be targeting church congregations, exploiting there good intentions and credibility. These flyers suggest that a entitlement is due from the IRS for little to no forms needed. Promoters also seem to prey on individuals with less income to give a sense of hope to take advantage of them.
The IRS released this list to warn people about what to look for:
- 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 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 Recovery Rebate Credit.