Beware of This Possible Military Tax Scam

Beware of This Possible Military Tax Scam
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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.

 

[MORE FINANCE NEWS FROM MOAA]

 

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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About the Author

Lt. Col. Shane Ostrom, USAF (Ret), CFP®
Lt. Col. Shane Ostrom, USAF (Ret), CFP®

Ostrom retired from the Air Force in 2000 and joined the MOAA team in 2006. His responsibilities include researching and answering member inquiries regarding military benefits, health care, survivor issues, and financial concerns.