From the Internal Revenue Service

Unauthorized representation of claimants and unlawful solicitation of fees

WASHINGTON, 30 January 2008 — The Internal Revenue Service today warned taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure. The IRS expects such scams to continue through the end of tax return filing season and beyond. The IRS cautioned taxpayers to be on the lookout for scams involving proposed advance payment checks. Although the government has not yet enacted an economic stimulus package in which the IRS would provide advance payments, known informally as rebates to many Americans, a scam which uses the proposed rebates as bait has already cropped up. The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft. Typically, identity thieves use a victim’s personal and financial data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns or even commit crimes. Most of these fraudulent activities can be committed electronically from a remote location, including overseas. Committing these activities in cyberspace allows scamsters to act quickly and cover their tracks before the victim becomes aware of the theft. People whose identities have been stolen can spend months or years — and their hard-earned money — cleaning up the mess thieves have made of their reputations and credit records. In the meantime, victims may lose job opportunities, may be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.

Click here for details on these most recent scams brought to IRS attention:

Rebate Phone Call

Refund e-Mail

Audit e-Mail

Changes to Tax Law e-Mail

Paper Check Phone Call

What to Do

Anyone wishing to access the IRS Web site should initiate contact by typing the IRS.gov address into their Internet address window, rather than clicking on a link in an e-mail or opening an attachment.

Those who have received a questionable e-mail claiming to come from the IRS may forward it to a mailbox the IRS has established to receive such e-mails, phishing@irs.gov, using instructions contained in an article titled “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes.” Following the instructions will help the IRS track the suspicious e-mail to its origins and shut down the scam. Find the article by visiting IRS.gov and entering the words “suspicious e-mails” into the search box in the upper right corner of the front page.

Those who have received a questionable telephone call that claims to come from the IRS may also use the phishing@irs.gov mailbox to notify the IRS of the scam.  

The IRS has issued previous warnings on scams that use the IRS to lure victims into believing the scam is legitimate. More information on identity theft, phishing and telephone scams using the IRS name, logo or spoofed (copied) Web site is available on this Web site. Enter the terms “phishing,” “identity theft” or “e-mail scams” into the search box in the upper right corner of the front page.

From the Department of Veterans Affairs

Unauthorized representation of claimants and unlawful solicitation of fees

There have been reports about individuals employed by private companies who claim to help veterans and their dependents apply for VA benefits. Some of these individuals have targeted elderly claimants at assisted living facilities. They have given claimants the impression that they are employed by the VA.

Representation
Representation before VA consists of actions associated with the preparation, presentation, and prosecution of claims for a VA claimant. A claimant is a person who has filed or has expressed an intention to file a written application for benefits. Among other things, representation may include counseling on veterans benefits, gathering information necessary to file a claim for benefits, preparing claim forms, submitting claim information to the VA, and communicating with VA on a claimant's behalf.

Federal law requires that lawful recognition of a representative can only be done by the Secretary of the Department of Veterans Affairs. VA may authorize an individual to prepare a benefit claim for a veteran on a one-time basis, authorization cannot be used again without approval of the VA's General Counsel.

Solicitation of fees
Accredited attorneys and agents are allowed to charge fees for representational services they provide after the Board of Veterans' Appeals makes a final decision in a case. VA's regulations provide a narrow exception to the general rule whereby a "disinterested" third party may pay an accredited attorney or agent for services provided before a final Board decision, and that representation can include the preparation of claims.

Some organizations that do not qualify for VA recognition structure their business to receive payment for their services from claimants' private care providers in an effort to avoid criminal penalties. The care providers typically do not know that these organizations are prohibited by law from preparing claims and charging fees, and are generally unaware of the services provided freely by recognized veterans' service organizations such as the PVA.

Recognized representatives
The VA recognizes 87 veterans service organizations--37 nationally, and one in each state. If you would like to know who has been authorized to represent veterans in matters of benefits, contact us by
Phone 800-775-9323 or 412-781-2474
Fax 412-781-2659
E-mail: keystonepva@comcast.net