IRS warns of growing tax return scam

By Staff
The IRS is warning Alabama taxpayers about reports of yet another tax scheme in the state.
The newly reported scheme appears to target the elderly and is related to the Telephone Excise Tax Refund, which most individuals were allowed to request on their 2006 tax returns.
About 10 days ago, the IRS alerted taxpayers in Louisiana and Mississippi to this scheme, but it reportedly has now spread to Alabama.
In the most recently reported scheme, some unscrupulous tax-return preparers are advising their clients to file tax returns requesting much more in Telephone Excise Refunds than they’re entitled to, sometimes hundreds of dollars more. Some of the erroneous refund requests appear to be for the entire amount of the phone bill, rather than just the three-percent tax charged on long-distance services.
The IRS is urging taxpayers to follow procedures described on the IRS Web site at IRS.gov to make accurate requests for the one-time telephone excise tax refund.
Taxpayers who request more of a refund than they are entitled to receive will likely have their refunds held and they may be subject to an audit. If you have any doubt as the legality of any tax deduction, credit or refund claim, contact the IRS before you use it. Knowingly filing a false federal tax return can lead to civil penalties or, in some cases, to criminal charges.If you think you’ve been the victim of a tax fraud, you will be required to file an amended return.
Taxpayers who want to report suspected tax fraud directly to the IRS may complete Form 3949-A, “Information Referral,” and submit it to the IRS. The form is available at www.irs.gov or by calling the IRS forms number toll-free at 1-800-829-3676. This form can be submitted anonymously.