[Vision2020] Fleecing The Gullible

[Art Deco]

Tax scam promises churchgoers 'free money'By Blake
Ellis<blake.ellis at turner.com>
@CNNMoney <https://twitter.com/intent/user?screen_name=cnnmoney> March 6,
2012: 5:55 AM ET
[image: Churchgoers are among the most common targets for tax scams, the
IRS said.]

Churchgoers are among the most common targets for tax scams, the IRS said.

NEW YORK (CNNMoney) -- The IRS is cracking down on scammers promising
elderly and low-income churchgoers "free money" by urging them to claim
fraudulent tax refunds.

The nationwide scheme, which reaches victims through flyers and online
advertisements, claims taxpayers can receive non-existent Social Security
refunds or other tax rebates and credits for which they don't qualify. The
con artists often tell taxpayers that they don't even need the proper
paperwork to claim the refunds.

The "free money" plots tend to target people with such low incomes that
they aren't required to file taxes, so the victims are caught off guard
when they are told they are missing out on lucrative credits and refunds.
Once they file the returns for their victims, the promoters collect steep
fees for their "services" and run off with the money, the IRS said.

"In the end, the victims discover their claims are rejected or the refund
barely exceeds what they paid the promoter. Meanwhile, their money and the
promoters are long gone," an IRS spokeswoman said.

Even if a taxpayer hires a preparer to submit a return and has no idea they
are part of a scam, they are still legally responsible for the information
in their return and will therefore be required to repay any money they
receive fraudulently, the IRS said.

One scheme that has been especially rampant this tax season promises senior
citizens they can get refunds or stimulus payments based on the American
Opportunity Tax Credit, a credit for college students or parents paying
tuition and expenses. However, many of the senior citizens claiming the
credit haven't seen the inside of a classroom in years, the IRS said.
Another variation falsely informs people that they can claim the college
credit to offset taxes they've paid on groceries.* *

The IRS said refund-related tax
scams<http://www.irs.gov/businesses/small/article/0,,id=106788,00.html>like
these spiked last summer and have spread from Virginia and the
Southern United States to the Midwest. Generally, they have been less
prevalent in the West and Northeast.

Churchgoers are among the most common targets, the IRS said.
IRS: Beware of 'dirty dozen' tax
scams<http://money.cnn.com/2012/02/16/pf/taxes/tax_scams/index.htm>

"Promoters are targeting church congregations, exploiting their good
intentions and credibility. They build false hopes and charge people good
money for bad advice," said an IRS spokeswoman.

Betty Yee, a member of the California Board of Equalization, the government
agency in charge of the state's tax administration, said these scams have
been showing up in Fresno, Sacramento, Stockton and the San Francisco Bay
Area. They have been especially prevalent among ethnic minorities, namely
the Southeast Asian community.* *

Last year, local community churches and
organizations<http://www.irs.gov/charities/churches/index.html>reported
that scammers were conning residents in Vietnamese, Cambodian,
Laotian and Hmong communities into thinking they were eligible for the
Making Work Pay tax -- a payroll credit of up to $400 per worker* *-- when
many of them weren't even working, Yee said.

They would allegedly approach some victims in person and speak to them in
their native language, often claiming to represent a non-profit tax
assistance organization, said Yee. Other con artists would send flyers and
paperwork to churches, and the churches would distribute them to members,
thinking that they were legitimate advertisements for tax professionals.

"They go through churches because people trust church officials," said Yee.
"But particularly for low-income communities, there are free resources to
help them with tax issues -- they shouldn't be looking to pay someone a
fee. That's a big warning sign."

Because of ongoing investigations, the
IRS<http://www.irs.gov/irs/index.html>won't reveal details about the
number of scams being perpetrated and the
names of the specific churches involved. But the agency said that there are
several red flags that people should be wary of.

These include claims that elderly taxpayers can get refunds and rebates
based on excess or withheld Social Security benefits and claims that
Treasury Form 1080 can be used to transfer funds from the Social Security
Administration to the IRS and result in a payout to taxpayers.
The $13,000 adoption tax credit is
back!<http://money.cnn.com/2012/02/13/pf/adoption_tax_credit/index.htm>

Consumers should also be skeptical of any unfamiliar for-profit tax
services that team up with local churches, as well as homemade flyers and
brochures that suggest credits or refunds are available with little or no
documentation. Some of these scammers advertise that low income taxpayers
can file their returns with catch lines like, "Low Income -- No Documents
Tax Returns," implying that low-income earners can get refunds without
supplying necessary documentation and proof of eligibility.

The IRS has been trying to raise public awareness by issuing nationwide
alerts, and alerting individual churches to be on watch for con
artists. [image:
To top of page]<http://money.cnn.com/2012/03/06/pf/taxes/tax_scam_churches/index.htm#TOP>


-- 
Art Deco (Wayne A. Fox)
art.deco.studios at gmail.com
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