The Internal Revenue Service has issued a warning for taxpayers in Delaware about a tax scam that has re-emerged and may be spreading to other areas.
The scam involves people posing as tax preparers and luring victims in by promising large refunds from the IRS, frequently involving education credits or the Earned Income Tax Credit.
People who are falling for this scam are discovering that a side-effect is that it will cost them their federal benefits, ranging from certain veterans benefits to Social Security payments or low-income housing benefits.
IRS Spokeswoman Dianne Besunder says the scammers may operate out of a store front and may appear to be legitimate tax preparers that recently opened for business. She says some scammers lure victims in with street corner signs or flyers.
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