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August 18, 2009
Watch for Tax Credit Scam

The IRS recently issued a warning about new tax-related identity theft scams, including one involving the Making Work Pay tax credit implemented as part of economic stimulus legislation.

Under the American Recovery and Reinvestment Act of 2009, the Making Work Pay credit is available to eligible wage earners for tax years 2009 and 2010—up to $800 for married couples filing joint federal income tax returns and $400 for other taxpayers. Most taxpayers receive the credit through decreased tax withholding, resulting in more take-home pay.

However, in a new scam, victims have received an e-mail claiming to come from the IRS, referencing President Barack Obama and the Making Work Pay credit and asking the recipient to register their bank account information with the IRS so that a lump-sum refundable credit can be deposited in their account.

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