| Tax time also means scam time
There's no good news that some crooks won't find a way to spoil. As the U.S. Department of the Treasury announces that every taxpayer is getting a check as part of an economic stimulus package, consumer advocates are expecting some to take advantage of the windfall. Every year, scammers use tax time to go ‘‘phishing'' for people's bank account numbers and Social Security numbers. Scammers may send e-mails or make phone calls claiming to be from the Internal Revenue Service and promising a quick refund. Their goal is to get bank account information or Social Security numbers. News of the stimulus checks will be no different, advocates say. ‘‘We can absolutely count on scams like that,'' said Bob Brammer, spokesman for the Iowa Attorney General's office. ‘‘The reason we expect it for sure is because we always have IRS scams,'' he said.
Tax preparer in Burnsville has been charged with fraud
A 37-year-old Burnsville man who ran a Minneapolis tax preparation business has been charged with helping his clients claim false tax credits and refunds. Abdikarim Osman Mohamed, who did business under the name Amal Tax Return, was indicted Thursday on 32 counts of aiding and assisting in the preparation of false tax returns. The indictment, which was unsealed Tuesday, lists the initials of 27 of Mohamed's clients. It says Mohamed prepared their returns in 2003 and 2004, helping them to file phony education credits totaling $44,202. Each dollar of education claims reduces the amount of taxes owed by $1. The Internal Revenue Service (IRS) says that fraud by tax preparers is among the 12 "most egregious tax schemes and scams" it's targeting this year.
Tax scams on the rise at NCL’s Fraud Center
Washington, D.C. -- Tax-related scams are on the rise, according to consumer complaints tracked by the National Consumers League's Fraud Center. Reports of tax scams from consumers nearly quadrupled in 2007 from the year before, and the trend seems to be continuing into 2008."This time of year - and with the economy in the shape it's currently in - crooks see vulnerable prey in consumers feeling the squeeze at tax time, said Sally Greenberg, Executive Director, National Consumers League. "Posing as IRS officials, these criminals pretend to be helping consumers claim a refund they're due, but they're really setting up a sting to steal consumers' hard-earned cash. Consumers who are eager to get their refund faster may be vulnerable to these pitches."In the scam, which was first reported to NCL's Fraud Center in April 2005, the two most common scenarios are both "Phishing" schemes: the victim receives a phone call from an "IRS employee" offering a tax refund - however, they need the taxpayer's checking account number, he or she is told, in order to deposit the money.
|
