April 17 is the Federal Tax Return Deadline, and the Internal Revenue Service (IRS) is warning seniors of a scam that has frequented this year's filings.
Because many seniors are not required to submit tax information due to little or no income, slick con artists see this as an opportunity to once again, take advantage of this vulnerable group of citizens.
Scores of seniors are paying swindlers money to file returns for them in the hopes of claiming benefits that they don't actually qualify for. It works well for the con men, as they make off with a senior's money and any important personal information the elderly person has provided them with.
This one will school you...
One popular scheme works by convincing seniors that they qualify for reimbursement through the American Opportunity Tax Credit (AOTC). The AOTC allows people paying for college to reduce their taxable income by as much as $2,500.
A key requirement of the AOTC is that a person be currently enrolled in an institute of higher education-a condition that most seniors do not meet. But here's a big surprise, the scammers actually lie to the elderly, telling them that they can collect benefits even if they went to school many years ago.
Here are some RED FLAGS the IRS tells caregivers and their elderly loved ones to look out for:
- For-profit tax companies they don't recognize.
- Anyone offering to file for you without asking for the proper documentation
- Anyone offering to file for expired programs
- Internet offers from unknown companies that ask you to call a number and request personal info.
- The IRS has issued several consumer warnings about the fraudulent use of the IRS name or logo by scamsters trying to access consumers financial information in order to steal their identity and assets.
Scamsters will uses regular mail, fax, phone or email to set-up their victims.