IRS warns of scams involving tax returns

Posted: 12:00am on Jul 13, 2011; Modified: 6:46am on Jul 19, 2011

The Internal Revenue Service has issued a warning about an increase in tax return-related scams.

These scams frequently target taxpayers who normally do not need to file a tax return, according to a news release.

The taxpayers are told they should file a return with the IRS for tax credits, refunds or rebates that they aren't entitled to.

Sometimes, the IRS says that identity theft is involved. Other times, a promoter may charge unreasonable amounts for preparing a return that could have been performed by free by the IRS, or by Volunteer Income Tax Assistance partners.

The IRS says that promoters have been targeting church congregations and exploiting the churches' good intentions and credibility. The scams especially prey on low-income families and the elderly.

Some things taxpayers should look out for include: fake claims for refunds or rebates based on withheld or excess Social Security benefits; claims that a Treasury Form 1080 could be used to enable a payout from the IRS by transferring funds from the Social Security Administration to the IRS; unfamiliar for-profit tax services teaming up with local churches; homemade fliers and brochures implying refunds or credits are available without proof of eligibility; offers of free money with no documentation needed; promised of refunds for low income-no document tax returns; claims for the expired Economic Recovery Credit Program or rebate credit and using the Earned Income Tax Claims on exaggerated report of income from self-employment.

To ask about tax credit or program, contact the IRS at 800-829-1040 or go to IRS.gov.

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