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IRS warns of tax scams

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ATLANTA (WTOC) -

The Internal Revenue Service urged consumers to guard against being misled by those trying to persuade them to file false claims for tax credits or rebates.

The IRS has seen an increase in tax-return-related scams that typically involve unsuspecting taxpayers who normally do not have a filing requirement in the first place, according to the IRS.

Taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. The IRS said most of these recent scams have been targeted in the South and Midwest. 

Unscrupulous promoters deceive people into paying for advice on how to file false claims.

Flyers and advertisements for free money from the IRS have been appearing in community churches around the country.

Promoters of these scams often prey upon low-income individuals and the elderly. 

Taxpayers should be wary of these pitches, according to the IRS:

  • 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.
  • Advice on using the Earned Income Tax Claims based on exaggerated reports of self-employment income.

Those with questions about a tax credit or program should visit www.IRS.gov, call the IRS at 800.829.1040 or visit a local IRS Taxpayer Assistance Center.

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