March 03, 1999
IRS Warns of Social Security
WASHINGTON - The Internal Revenue Service warned taxpayers not
to fall victim to a scam offering them refunds of the Social
Security taxes they have paid during their lifetimes. The victim
pays a "paperwork" fee of $100, plus a percentage of any refund
received, to file a refund claim with the IRS.
"This is nothing more than a hoax designed to fleece the victims
for the upfront fee," said Ted Brown, IRS Assistant Commissioner for
Criminal Investigation. "The law does not allow such a refund of
Social Security taxes paid, and the IRS will contact taxpayers
filing these claims."
The IRS processing centers are alert to this hoax and have been
stopping the false claims. The IRS has already blocked almost 1,100
refund claims totaling nearly $95 million.
Brown cautioned that during the tax filing season, some people
try to take advantage of innocent taxpayers by offering questionable
tax advice for an unusual fee. When a fee is tied to a percentage of
the refund, as in this scam, a taxpayer will do well to question the
"I invite taxpayers who may have been the subject of this hoax
-- or who may have any related information that could help us in
this matter -- to call the IRS fraud hotline toll-free at
1-800-829-0443," Brown said.
Previous | Next
1999 IRS News Releases | News Releases Main | Home