Elderly and low-income tax payers in Dallas may be among the targets of scams promising tax relief. The Internal Revenue Service is warning that companies promising rebates and tax refunds for a fee are conning seniors and financially strapped families out of cash.
So-called “no documents” tax return advertisements pitch fraudulent solutions to troubled taxpayers, many of whom believe the fake tax-law loopholes can usurp the power of the IRS.
Seniors are the scammers’ prime targets, according to one IRS spokesperson. Con artists promise the elderly refunds on excess Social Security benefits. The ads, often handed out as flyers in community church settings, falsely claim that retirees can use Treasury Form 1080 to transfer Social Security benefits to the IRS for a refund, which the IRS says is inaccurate and illegal.
Many seniors who are duped into believing they’ve found bonus income are taken for a financial ride. Unfortunately, the IRS representative said, the elderly are often innocently told about the advertised tax schemes by family and friends who mean well.
The IRS warns that companies that make grandiose claims and deliver nothing but trouble frequently promise to file tax returns without documents and encourage trying to recover tax money from expired government credit or rebate programs.
The IRS advises that if the tax benefits offered seem too good to be true, they probably are. Taxpayers who have been affected by the scams are encouraged to report them to an IRS Taxpayer Assistance Center or phone the IRS.
Finding yourself in tax trouble, whether from a situation like this or other circumstances, can be very frustrating and confusing. Speaking to an experienced Dallas tax law attorney may be helpful in sorting out tax problems and working to find a solution.
Source: KTEN.com, “Tax scam targets seniors and low income,” Thomas Miller, Aug. 2, 2011