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 http://www.irs.gov/newsroom/article/0,,id=241789,00.html.