ElectroFile Tax Software Tax Info Newsletter            Dated: 07/16/2001

Advance Payment Scams Surface

Information from a report filed by Accountingweb.com
Some people will do anything for a buck - they even try to take advantage of confused taxpayers.

Reports have come out of four states - Oklahoma, Missouri, Mississippi, and Ohio - regarding a scam based on the IRS summer rebate program.

It has been discovered that scam operators are sending "Taxpayer Refund Information Card" notices to taxpayers in these four states recommending that recipients send in a fee of $14.95 to receive information about how much they can expect to receive in their tax rebate.

The IRS is not sending these notices, and indeed the rebate information and the schedule for mailing payments is available for free from a number of sources, including here at ElectroFile Tax Tips . You can also call the IRS at 1-800-829-1040 for information about the rebates.

The U.S. Treasury Department has announced plans to send out letters in July explaining the rebate and the payment schedule. The rebates will be mailed from late July through September.

NOTE: The news media seems to be bent on reporting on the "tax rebate" and the public and advertisers are misunderstanding the "2001 Advance Payments" program as a rebate. You may want to further educate your clients that this is not a rebate of taxes already paid, but instead is an advance payment of a tax credit they will receive when they file their 2001 tax return. These misunderstandings are definitely going to create problems for you as a tax preparer during the coming filing season. And it will be absolutely necessary to know the actual amount of the advance payment your client has already received while completing his 2001 return.

For more information, eMail: taxinfo@electrofile.com

All information provided is general in nature and intended to create awareness, not to address the specific circumstances or concerns of any individual or entity. Although we try to provide correct and timely information, we cannot guarantee the accuracy of any information or that such information will continue to be accurate in the future due to the changing nature of the tax laws. Before acting on any of the information provided here, you should consult with a professional advisor who knows all of the unique facts and circumstances pertinent to your particular situation.