Every year, we warn you about tax return identity theft: bad guys all over the world obtain enough personal information about U.S. taxpayers to file fake tax returns and steal our refunds. After a taxpayer’s identity gets stolen in this way, the Internal Revenue Service issues them a special identification number that they have to enter when filing their tax return. The problem is that these numbers are pretty easy to access, too, and the IRS doesn’t have a good replacement yet. [More]
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.