Beware of This Possible Military Tax Scam

By: Shane Ostrom

May 20, 2020

Beware of This Possible Military Tax Scam — designer491/Getty Images

A member wrote in about this “offer” by a tax preparer in the Maryland area:

“For $1,500, military retirees can get amended federal and state income tax returns to receive a big tax refund. Military retirees who served in a combat zone, with at least a 40% VA disability rating, are promised a refund of previously paid federal and state income taxes. Reportedly, the flow of retirees through their office is such that three people work full time, Wed-Sat, collecting money and preparing amended returns. Of course, there is much excitement and word spread quickly. Folks have paid, shared their original tax returns, then signed and mailed the LLC amended returns, but I am aware of no one who received anything from IRS — or state.”

The information is only hearsay, but I am playing it safe rather than sorry.

Though I’m not a tax specialist, I have some training and knowledge in taxes, and my research turned up no such tax program. I consulted two tax specialists who work closely with military members and neither know of such a program.

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Have you used this service and actually received a tax refund? What about a friend of yours? If so, email beninfo@moaa.org.

Does this tax preparer know something other preparers don’t? I don’t know, but I doubt it. I suggest that anyone considering such help question the tax preparer about the source of this program and provide proof from the IRS or seek other help.

Remember: You have more time to file and pay federal taxes this year, but state deadlines vary.

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