Thursday, July 21, 2011

IRS Warns Taxpayers To Avoid Being Victimized By Scam Artists

Taxpayers continue to fall prey to perpetrators of tax scams, and IRS is urging they exercise more vigilance. (IR 2011-73) Scam artists are increasingly trying to persuade taxpayers to file false claims for tax credits or rebates, IRS said in a July 12 advisory. According to the agency, there has been an upswing in tax-return-related scams, often involving “unsuspecting taxpayers who normally do not have a filing requirement in the first place.” These taxpayers are led to believe they should file a tax return for tax credits, refunds or rebates for which they are not entitled, IRS said. In the advisory, IRS offered a list of situations that should raise a taxpayer's suspicion, including: 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 IRS enabling a payout from the agency; unfamiliar for-profit tax services teaming up with local churches; and homemade flyers and brochures implying credits or refunds are available without proof of eligibility. Further details are located at,,id=241789,00.html.

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