Tax scam targets potential recipients of Advance Child Tax Credit

Daily Record (Rochester, NY), Jun 24, 2003 by Daily Record Staff

The Internal Revenue Service issued a consumer alert, warning taxpayers about a new scam targeting potential recipients of the Advance Child Tax Credit.

Although there have only been isolated instances of this new scheme, it is reported that some taxpayers have received telephone calls promising to speed up the payment of the Advance Child Tax Credit checks. The catch is the taxpayer must agree to a $39.99 charge to a credit card.

No person or organization can "speed up" the payment of tax benefits. In reality, taxpayers do not have to take any action to get the new benefit, which features an advance payment for up to $400 per qualifying child. The Treasury Department and IRS will perform all the calculations and automatically mail a notice and a check to each eligible taxpayer, beginning the week of July 25, 2003.

"The only thing the taxpayer needs to do is cash the check," said Laurie Ruffino, IRS spokesperson for Upstate New York. "If you qualify, we will send you a notice. There's no need to call, no need to apply, no need to fill out another form. The IRS will do all the work. A few days after the notice, you will get the check."

This is not the first scam that has used current events to prey on unsuspecting victims. The scams often feature callers seeking credit card information to get taxpayers to pay for special benefits.

If the taxpayer agrees to the charge and provides a credit card number or other sensitive personal information, she could find a much larger charge to her account. By the time the taxpayer realizes something is wrong, the scam operator is long gone, possibly victimizing another taxpayer.

Additional information on tax scams may be found on the newroom link at the IRS website, www.IRS.gov.