The Internal Revenue Service offers the following seven tips to help taxpayers avoid an emerging scheme tempting senior citizens and other taxpayers to file tax returns claiming fraudulent refunds.
These schemes promise refunds to people who have little or no income and normally don't have a tax filing requirement.
Promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.
Con artists falsely claim that refunds are available even if the victim went to school decades ago. In many cases, scammers are targeting seniors, people with very low incomes and members of church congregations with bogus promises of free money.
A variation of this scheme also falsely claims the college credit is available to compensate people for paying taxes on groceries.
These schemes can be quite costly for victims. Promoters may charge exorbitant upfront fees to file these claims and are often long gone when victims discover they've been scammed.
Taxpayers should be careful of these scams because, regardless of who prepared their tax return, the taxpayer is legally responsible for the accuracy of their tax return and must repay any refunds received in error, plus any penalties and interest. They may even face criminal prosecution.
To avoid becoming ensnared in these schemes, the IRS says taxpayers should beware of any of the following:
In recent weeks, the IRS has identified and stopped an upsurge of these bogus refund claims coming in from across the United States. The IRS is actively investigating the sources of this scheme, and its promoters can be subject to criminal prosecution.
To get the facts on tax benefits related to education, go the Tax Benefits for Education Information Center on this website.
March 3 (Farmers & fishermen)
File your 2013 income tax return (Form 1040) and pay any tax due - Details
March 10 (Employees who work for tips)
If you received $20 or more in tips during February, report them to your employer - Details
March 17 (Corporations)
File a 2013 calendar year income tax return (Form 1120) and pay any tax due - Details
March 17 (S Corporations)
File a 2013 calendar year income tax return (Form 1120S) and pay any tax due - Details
March 17 (S Corporations)
S Corporation Election: File Form 2553, Election by a Small Business Corporation, to elect to be treated as an S corporation beginning with calendar year 2014 - Details
March 17 (Partnerships)
Electing Large Partnerships: Provide each partner with a copy of Schedule K-1 (Form 1065-B), Partner's Share of Income (Loss) From an Electing Large Partnership, or a substitute Schedule K-1 - Details
March 31 (All businesses)
File Forms 1097, 1098, 1099, 3921, 3922, and W-2G with the IRS. This due date applies only if you file electronically - Details