Young adults enrolled in colleges are being approached by tax scammers and fooled into giving up their identification information. Most college students feel they are pretty familiar with scams and don’t think they could be caught off guard, but this scam is working on many. The IRS has identified thousands of bogus refund claims in the past few weeks.
Scammers contact students and tell them they are eligible
for the American Opportunity Tax Credit, which will get them a refund check of
up to $1,000. They offer to file all of
the necessary documents if the student pays them $500 up front. The lure of an extra $500 appears to be
attractive enough to escape the radar of even scam-savvy students. Unfortunately, they instead come to find out
they have lost the $500 for good and will not receive a check from the
IRS. Many of these students have never
filed a tax return and think it would be easier to have someone else handle it
for them. Thus, they get pulled into the
If you know a college student, be sure to warn him or her to
be aware of and avoid this particular scam.
While it is possible that some students are eligible for the American
Opportunity Tax Credit, they should use a reputable tax preparer to assist them,
and be sure to check the company’s credentials with the Better Business
You can always give FlemmerAssociates, LLP a
call. We’ll be happy to see whether you
are eligible for the tax credit and prepare the filings for you.