I.R.S. Audits of Working Poor Increase

New York Times ^ | March 1, 2002 | By DAVID CAY JOHNSTON

[razorback-bert]

Scam artists are bilking African-Americans nationwide by charging them for information about a phony “slave reparation” tax credit, the latest in a line of schemes dealing with money for descendants of slaves, federal officials said Friday, October 6, 2000. The Internal Revenue Service said its tax centers nationwide all have received thousands of slave reparation-related claims in the last few months. But because there is no law allowing reparations, the IRS rejects the claims. The claims are prompted by scam artists, who charge money for the false information on how to file the claims.

Because there is no such law providing for such reparations, the IRS rejects such claims. Taxpayers who repeatedly file claims after receiving a denial notice are subject to a $500 penalty for filing a frivolous tax return.

[Fred Mertz]

I just received another love letter from the IRS in today's mail. I'm assuming it's a love letter, but I haven't opened the last three or four. My blood pressure might explode if I did.

[speekinout]

Because there is no such law providing for such reparations, the IRS rejects such claims.

Not quite true. Until this year, the IRS hadn't noticed the scheme, and actually paid many of these claims.

[Vigilanteman]

Strongly suggest you read To Harass Our People by former Congressman George Hansen.

[Dianna]

In the early years of the EITC, there were problems with military families claiming it.

I read the stupid tax book and it said very clearly that non-cash benefits had to be figured in before one could qualify. We never qualified because we lived in Navy housing. That didn't stop everyone my husband worked with, the neighbors, and HR and R Block from trying to get me to claim it.

Within a couple of years they began listing the amount of the housing benefit on the tax forms.