New Tax Scam Targets Potential Recipients of Advance
Child Tax Credit
IR-2003-79, June 18, 2003
— The Internal Revenue Service today issued
a consumer alert, warning taxpayers about a new
scam targeting potential recipients of the Advance
Child Tax Credit.
IRS has seen isolated instances of this new scheme.
A taxpayer receives a telephone call from a person
who promises to speed up the payment of the Advance
Child Tax Credit checks. The catch is the taxpayer
must agree to a $39.99 charge to a credit card.
IRS reminds taxpayers that no person or organization
can “speed up” the payment of tax benefits.
In reality, taxpayers do not have to take any action
to get the new benefit, which features an advance
payment for up to $400 per qualifying child. The
Treasury Department and IRS will perform all the
calculations and automatically mail a notice and
a check to each eligible taxpayer, beginning the
week of July 25.
only thing the taxpayer needs to do is cash the
check,” said Mark W. Everson, IRS Commissioner.
“If you qualify, we will send you a notice.
There’s no need to call, no need to apply,
no need to fill out another form. The IRS will do
all the work. A few days after the notice, you will
get the check.”
the new scam, the IRS is seeing the continuation
of a trend that emerged earlier this year when the
families of those serving in the Armed Forces were
targeted. In both of these schemes, scam artists
use current events to prey on unsuspecting victims.
The scams also feature callers seeking credit card
information to get taxpayers to pay for special
the taxpayer agrees to the charge and provides a
credit card number or other sensitive personal information,
she could find a much larger charge to her account.
By the time the taxpayer realizes something is wrong,
the scam operator is long gone, possibly victimizing
you encounter this latest tax scam or suspect tax
fraud or abuse in some other situation, report it
to your nearest Internal Revenue Service office.
When in doubt, seek help from the IRS or a tax professional.
can call the IRS tax fraud hotline at 1-800-829-0433.