{"id":483,"date":"2011-07-19T11:29:23","date_gmt":"2011-07-19T16:29:23","guid":{"rendered":"http:\/\/hoorfarlaw.com\/blog\/?p=483"},"modified":"2011-07-19T11:29:23","modified_gmt":"2011-07-19T16:29:23","slug":"irs-urges-taxpayers-to-avoid-becoming-victims-of-tax-scams","status":"publish","type":"post","link":"https:\/\/hoorfarlaw.com\/blog\/?p=483","title":{"rendered":"IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams"},"content":{"rendered":"<p>The Internal Revenue Service encouraged taxpayers to guard against<br \/>\nbeing misled by unscrupulous individuals trying to persuade them to file false<br \/>\nclaims for tax credits or rebates.<\/p>\n<p>The IRS has noted an increase in tax-return-related scams, frequently<br \/>\ninvolving unsuspecting taxpayers who normally do not have a filing requirement<br \/>\nin the first place. These taxpayers are led to believe they should file a<br \/>\nreturn with the IRS for tax credits, refunds or rebates for which they are not<br \/>\nreally entitled. Many of these recent scams have been targeted in the South and<br \/>\nMidwest.<\/p>\n<p>Most paid tax return preparers provide honest and professional service, but<br \/>\nthere are some who engage in fraud and other illegal activities.<br \/>\nUnscrupulous promoters deceive people into paying for advice on how to file<br \/>\nfalse claims. Some promoters may charge unreasonable amounts for preparing<br \/>\nlegitimate returns that could have been prepared for free by the IRS or IRS sponsored<br \/>\nVolunteer Income Tax Assistance partners. In other situations, identity theft<br \/>\nis involved.<\/p>\n<p>Taxpayers should be wary of any of the following:<\/p>\n<ul>\n<li>Fictitious claims for refunds or rebates based on<br \/>\nexcess or withheld Social Security benefits.<\/li>\n<li>Claims that Treasury Form 1080 can be used to transfer<br \/>\nfunds from the Social Security Administration to the IRS enabling a payout<br \/>\nfrom the IRS.<\/li>\n<li>Unfamiliar for-profit tax services teaming up with<br \/>\nlocal churches.<\/li>\n<li>Home-made flyers and brochures implying credits or<br \/>\nrefunds are available without proof of eligibility.<\/li>\n<li>Offers of free money with no documentation required.<\/li>\n<li>Promises of refunds for &#8220;Low Income \u2013 No Documents Tax<br \/>\nReturns.&#8221;<\/li>\n<li>Claims for the expired Economic Recovery Credit Program<br \/>\nor Recovery Rebate Credit.<\/li>\n<li>Advice on claiming the Earned Income Tax Credit based<br \/>\non exaggerated reports of self-employment income.<\/li>\n<\/ul>\n<p>In some cases non-existent Social Security refunds or rebates have been the<br \/>\nbait used by the con artists.\u00a0 In other situations, taxpayers deserve the<br \/>\ntax credits they are promised but the preparer uses fictitious or inflated<br \/>\ninformation on the return which results in a fraudulent return.<\/p>\n<p>Flyers and advertisements for free money from the IRS, suggesting that the<br \/>\ntaxpayer can file with little or no documentation, have been appearing in<br \/>\ncommunity churches around the country. Promoters are targeting church<br \/>\ncongregations, exploiting their good intentions and credibility. These schemes<br \/>\nalso often spread by word of mouth among unsuspecting and well-intentioned<br \/>\npeople telling their friends and relatives.<\/p>\n<p>Promoters of these scams often prey upon low income individuals and the<br \/>\nelderly.<\/p>\n<p>They build false hopes and charge people good money for bad advice.\u00a0 In<br \/>\nthe end, the victims discover their claims are rejected or the refund barely<br \/>\nexceeds what they paid the promoter.\u00a0 Meanwhile, their money and the<br \/>\npromoters are long gone.<\/p>\n<p>Unsuspecting individuals are most likely to get caught up in scams and the<br \/>\nIRS is warning all taxpayers, and those that help others prepare returns, to<br \/>\nremain vigilant. If it sounds too good to be true, it probably is.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Service encouraged taxpayers to guard against being misled by unscrupulous individuals trying to persuade them to file false claims for tax credits or rebates. The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers &hellip; <a href=\"https:\/\/hoorfarlaw.com\/blog\/?p=483\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,3],"tags":[],"class_list":["post-483","post","type-post","status-publish","format-standard","hentry","category-general","category-taxation"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=483"}],"version-history":[{"count":2,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/483\/revisions"}],"predecessor-version":[{"id":485,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/483\/revisions\/485"}],"wp:attachment":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}