FraudNews
01-30-2013, 11:12 PM
With the 2012 tax season in force, the Internal Revenue Service has issued a warning to college students, church members and seniors about a new refund scam.
According to the IRS, the scam attempts to attain students’ personal information and file tax returns to claim fraudulent refunds. Scammers have sent bogus, misleading refund claims about the American Opportunity Education Tax Credit on many Southeast college campuses.
Every one of the schemes make the promise that people who have next to no income, are typically clamed as dependents or not required to file an income tax return can get refunds. According to the IRS, The scammers promise free money and are going after people who have low incomes, seniors, college students and church member congregations.
Since the IRS is looking to stop these criminals from stealing others’ identities, taxpayers who want a quick refund may need to wait a little longer. The agency began accepting returns Jan. 30 and is making their automated system extra sensitive to possible signs of fraud. Thus, some returns will be getting a more in-depth look. The IRS stopped $20 billion in fraud returns last year, which is an increase of $6 million from the year before ($14 billion).
The agency has been doing what it can to reduce processing times to speed up refunds, in hopes to encourage more folks to use electronic filing and reduce their dependence on short-term loans. Of course, the speed in which these refunds are given provides the chance for fraud. The IRS said 90 percent of the refunds should be made within 21 days.
According to the IRS, the scam attempts to attain students’ personal information and file tax returns to claim fraudulent refunds. Scammers have sent bogus, misleading refund claims about the American Opportunity Education Tax Credit on many Southeast college campuses.
Every one of the schemes make the promise that people who have next to no income, are typically clamed as dependents or not required to file an income tax return can get refunds. According to the IRS, The scammers promise free money and are going after people who have low incomes, seniors, college students and church member congregations.
Since the IRS is looking to stop these criminals from stealing others’ identities, taxpayers who want a quick refund may need to wait a little longer. The agency began accepting returns Jan. 30 and is making their automated system extra sensitive to possible signs of fraud. Thus, some returns will be getting a more in-depth look. The IRS stopped $20 billion in fraud returns last year, which is an increase of $6 million from the year before ($14 billion).
The agency has been doing what it can to reduce processing times to speed up refunds, in hopes to encourage more folks to use electronic filing and reduce their dependence on short-term loans. Of course, the speed in which these refunds are given provides the chance for fraud. The IRS said 90 percent of the refunds should be made within 21 days.