IRS WARNS OF BLACK TAX BREAK SCAMS
Scam artists are bilking blacks nationwide by charging them for information about a phony “slave reparation” tax credit, the latest in a line of schemes dealing with money for descendants of slaves, federal officials said today.
The Internal Revenue Service said its tax centers nationwide all have received thousands of slave reparation-related claims in the last few months. But because there is no law allowing reparations, the IRS rejects the claims.
The claims are prompted by scam artists, who charge money for the false information on how to file the claims.
“It’s despicable that some are stealing from innocent people by charging fees to prepare what they know to be baseless claims,” IRS Commissioner Charles Rossotti said.
Prosecuting a Hoax The scam comes in two forms, IRS officials said. In one, the person tells blacks to claim a credit for black investment taxes or reparations. In the other, the person tells black taxpayers to attach a form listing thousands of dollars in tax withholdings that never occurred.
Officials are trying to prosecute the promoters of the scam, Rossotti said.