IRS warns of Social Security scam targeting Michigan seniors
Posted: 08.28.2011 at 9:00 AM
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The Internal Revenue Service says a Social Security scam is targeting Michigan seniors.

 

"This scam tricks seniors into filing tax returns to get a refund on withholding from Social Security," explained IRS spokesman Luis Garcia in a written release. "Unfortunately, these victims, like most people, do not have any withholding from their Social Security benefits, the return is false and honest people can be = out hundreds of dollars and may subject themselves to penalties and interest charges."

 

According to the IRS, the scam claims there’s free money that they can receive with little or no documentation. They’re getting names from unsuspecting individuals and targeting senior citizens.

 

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.

 

*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.

 

* 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 return.