Poor, Elderly Churchgoers Targets Of Tax Scam

Con artists are preying on seniors and low-income individuals at Southern California community churches, bilking them out of what little money they have, the IRS warned today.

The scam seen in Southern California and Nevada promises a tax refund or rebate based on Social Security benefits, and claims taxpayers can file a return and get a refund with little or no documentation.

Flyers and advertisements for “free money from the IRS” have been appearing in community churches around the country, according to IRS spokesman Raphael Tulino, but Southern California and Nevada have been particularly hard hit. He said the scam is often being spread word of mouth by unsuspecting and well-intentioned people.

“We are seeing various scams that encourage taxpayers to file tax returns for a fee to get a bogus refund, tax credit or rebate,” Tulino said. “Promoters of these scams often prey upon low-income individuals and senior citizens. They build false hopes and charge people good money for bad advice. When the victims discover their claims are rejected and must be repaid to the IRS, their money and the promoters are long gone.”

The IRS says taxpayers should be wary of any of the following:

• 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.
• Homemade 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.
• In some cases, non-existent Social Security refunds or rebates have been the bait used by the con artists. In other situations, taxpayers deserve the tax credits they are promised but the preparer uses fictitious or inflated information on the return, which results in a fraudulent claim.

Taxpayers with questions about a tax credit, tax scam or program should visit the IRS website at IRS.gov or call the IRS national toll-free number at 800-829-1040.