IRS warns about tax-credit scam

Malia Spencer

Friday, June 20, 2003 | 9:19 a.m.

The Internal Revenue Service issued a warning Thursday alerting the public to a scam involving the Advance Child Tax Credit recently passed as part of the Bush administration's tax cut package.

The IRS is not aware of the extent of this new scheme or the types of people who are targeted, but officials want taxpayers to be wary of anyone calling them about the child credit.

Some eligible taxpayers have received phone calls telling them a third party can expedite the payment of their benefit for a credit card fee of $39.99, according to a statement released by the IRS. The IRS does not charge taxpayers for such a service and no one can speed up the time it takes to receive a payment, Bill Brundson, IRS spokesman said.

"We want the public to know so they won't be taken in," Brundson said.

Eligible taxpayers can receive up to $400 per qualifying child with the advance credit. In Nevada, 199,000 families can expect checks in the mail, Brundson said. He added that a few days before the check is received the taxpayer should receive a notice.

The checks will be mailed out in three stages, depending on the last two digits of the recipient's Social Security number and will begin appearing in mailboxes on July 25. Mailings will follow on Aug. 1 and Aug. 8, Brundson said.

IRS officials are urging people not to disclose credit card or other personal information to anyone calling about this tax credit. If a taxpayer is contacted via phone in this manner, Brundson said they should call the IRS tax fraud hotline at (800) 829-0433.

This type of fraud is not unusual, the IRS says.

"Unfortunately there is always a scam coming out to take money from taxpayers' pockets," Brundson said.