Tax Refund Scam Targets College Students

Darrin T. Mish

Tax Attorney • 32+ Years Experience

The tax-relief industry loves to make IRS problems sound impossible without them. They're not. I'm Darrin Mish. I've been representing taxpayers before the IRS for 32 years. Let me explain how this actually works.

There is a scam going on that targets college students promising them a $1,000 college tax refund or stimulus payment based on the American Opportunity Tax Credits. The scam solicits the students’ personal details with the assurance that all the necessary paperwork and procedures will be done without the students doing a thing. The scam has been widespread through the southeast of the nation especially in Georgia, Alabama and Mississippi states. Besides students, it has been discovered that the same scam has also been promoted to churchgoers and senior citizens.

By the time they graduate, many college students would be in debt due to college loans so may be vulnerable to scams that promise relief from such debt. This scam may even charge an upfront fee besides taking the student’s personal information. Then when the student’s claim is rejected by the IRS, the victim has not only lost money but has his or her personal and financial information stolen as well.

The IRS is actively investigating the matter but has yet to obtain any firm clues as to the source of the scam. The agency has distributed fliers to warn college students about the scam and remind them not to release their personal information to anyone they do not know.

The IRS also reminds everyone that it will never contact any individual via email, text or social media and any communication coming through those channels is fraudulent and should be reported to the IRS. Such scams attempting to get your personal information through electronic means are called phishing. You can send forward any electronic communication purportedly from the IRS to [email protected].

Check out more Tax News stories by clicking that link.