The Internal Revenue Service issued a warning for a tax preparation fraud involving phony credits based on stimulus packages. Hucksters are apparently targeting the elderly and tricking them into taking tax credits geared toward college students.
South Florida Caribbean News reports the fraudsters are tricking people into claiming the American Opportunity Tax Credit, which is meant to help students defray costs of higher learning. Those pushing the scams are promising big tax returns for people who don’t qualify, then pocketing preparation fees and leaving victims to pick up the mess.
If you’re using a tax pro that you’ve never worked with before who produces mind-blowing results, be sure to talk through your return with him so you understand why you’re getting your refund. Also, make sure he signs your return so he’ll be on the hook if the IRS decides to investigate.
Tax Scam Warning: Beware of Phony Refund Schemes [South Florida Caribbean News]
Previously: IRS Warns Against Tax Scams