HV Ken Posted February 23, 2009 Report Share Posted February 23, 2009 From: [email protected] Subject: Individual Filers - Bogus Refund Scheme Date: Monday, February 23, 2009 8:59:34 AM ATTN: Authorized IRS e-file Providers/EROs Some taxpayers are attempting to obtain refunds based on false withholding credits. The 1099-OID Refund Scheme involves filing any series Form 1040, U.S. Individual Income Tax Return, which includes false withholding credits from Form 1099 OID, Original Issue Discount, or any type of Form 1099, U.S. Information Return. Documents listing the false withholding credit may or may not be attached to the tax return. Characteristics of this refund scheme include a withholding credit is equal to or greater than the (1) interest income and/or (2) other income and/or (3) total income reported on Form 1040. However, returns reporting uncharacteristically high amounts of withholding from any series Form 1099 may be part of this scheme. The scheme also includes Form 1120, U. S. Corporate Income Tax Return, in which the taxpayer reports an amount of backup withholding that is equal to taxable income. Tax returns that contain frivolous information are subject to a $5,000 civil penalty imposed by Internal Revenue Code § 6702(a). For more information on frivolous returns, see Notice2007-30, 2007-14 I.R.B on irs.gov. ---------- This has been an IRS e-file QuickAlert Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 23, 2009 Report Share Posted February 23, 2009 Thanx for the info. taxbilly Quote Link to comment Share on other sites More sharing options...
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