DOR warns of Senior Circuit Breaker Tax Credit scam
The Department of Revenue today released a statement from Taxpayer Advocate Dennis Buckley warning the public, tax preparers, and those who assist seniors in preparing tax returns of a scam that surfaced last year involving the popular Senior Circuit Breaker Tax Credit.
"The Senior Circuit Breaker Tax Credit last year helped nearly 80,000 state residents receive a refundable tax credit. Unfortunately, several unscrupulous tax preparers coaxed elderly public housing residents to fraudulently apply for the credit (residents of public housing are ineligible for the credit).
"The preparers who participated in this scam asked for a payment to submit the fraudulent application, and some seniors received the credit without actually qualifying for it. The Department of Revenue has notified those senior residents that the refund was obtained fraudulently and must be paid back.
"We ask you to share knowledge of this scam with your colleagues. Seniors are not eligible for the Senior Circuit Breaker Tax Credit if they live in public or subsidized housing," Buckley wrote.
The Senior Circuit Breaker will deliver a maximum tax credit of $980 in tax year 2011.