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                         February 8, 2002

Beware of Social Security refund hoax

WASHINGTON -- The IRS warned taxpayers not to fall victim to a scam offering them refunds of the Social Security taxes they have paid during their lifetimes. The victim pays a "paperwork" fee of $100, plus a percentage of any refund received, to file a refund claim with the IRS.

"This is nothing more than a hoax designed to fleece the victims for the upfront fee," said Ted Brown, IRS Assistant Commissioner for Criminal Investigation. "The law does not allow such a refund of Social Security taxes paid."

Brown cautioned during the tax filing season, people try to take advantage of taxpayers by offering questionable tax advice for an unusual fee.