The Economic Stimulus Act of 2008 (the Stimulus Act) provides tax rebates for millions of eligible individuals (see the related page 1 article). Even before the Stimulus Act became law, the IRS warned taxpayers that scammers were already using the word “rebate” as bait in fraudulent activities to induce innocent victims to reveal their identity to the scammer. Typically, identity thieves use a victim’s personal and financial data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, and apply for new loans, credit cards, services, or benefits in the victim’s name. Most of these fraudulent activities can be committed electronically from a remote location, even overseas. So, please contact us if you receive any suspicious phone calls or emails related to rebates or other issues that purportedly come from the IRS.

Tax and Business Alert