Don't Fall Victim to Economic Stimulus Scams
By: Amos Goodall
The Economic Stimulus Act of 2008, passed in February, instructs the Treasury Department to distribute "rebate" checks expected to total some $100 billion to working-class families across America.
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households who qualify for the rebates.
The Act contains other incentives, more applicable to more affluent Americans and businesses.
For example, the maximum depreciation deduction for luxury automobiles is more than tripled, and some first year depreciation deduction elections for non-real estate business purchases are almost doubled, to mention two of the new Act’s features.
“Rebate” checks are officially referred to by the government as economic stimulus payments.
They are available to individuals who file tax returns for 2007 who have valid Social Security Numbers and show qualifying income of at least $3,000 on that return.
Eligible individuals will receive between $300 and $600.
Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child.
The economic stimulus law allows Social Security recipients and recipients of certain veterans' benefits and Railroad Retirement benefits to count those benefits towards qualifying for the “rebate”. Supplemental Security Income does not count.
Certain people do usually need to file tax returns. For example, in 2007, single individuals generally do not need to file unless their gross income exceeds $8,450.
However, unless a return is filed, the “rebate” check will not be sent out. Recognizing that this may impose a hardship on lower income taxpayers, the IRS and many of the leading tax software companies (called the Free File Alliance Partners) have teamed up to offer free tax preparation and electronic filing to individuals who meet their guidelines. The IRS Internet site to access these free programs is http://www.irs.gov/efile/lists/0,,id=179739,00.html.
Given the publicity of the Economic Stimulus program, the Treasury warns that consumers’ anticipation of the “rebate” checks has created a whole new set of fraud schemes.
If someone calls, claiming to be from the Treasury and asks for personal information such as social security number or date of birth, it is entirely possible that the caller is attempting to perpetrate identity theft.
The IRS has reported the existence of telephone and email use of this ploy as well as, for the first time, emails requesting information for an alleged audit being conducted by the IRS.
According to the Service, the IRS does ever not send unsolicited, tax-account related e-mails to taxpayers, and agents are not expected to be making any telephone calls to taxpayers about the Economic Stimulus program.
Finally, the IRS reports, there have been contacts to consumers alleging that the caller is following up on uncashed government checks, requesting bank account information.
According to the IRS, its agents do not routinely request this information either.
In short, a general rule is that if anyone calls or emails you requesting any personal information at any time, no matter how plausible the requester seems, assume you are being “phished”.
The IRS requests that any suspicious emails and information about any suspicious telephone calls be forwarded to the IRS at phishing@irs.gov.