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IRS Erroneously Paid Slavery Credits
AP ^ | April 13, 2002, 12:26 AM EDT | CURT ANDERSON

Posted on 04/12/2002 10:40:19 PM PDT by Jean S

WASHINGTON --

The Internal Revenue Service mistakenly paid out more than $30 million to tax filers seeking nonexistent slavery tax credits in 2000 and 2001, according to a Treasury Department investigation.

A growing number of black taxpayers are being misled by scams falsely claiming that, for a fee, they can get tax credits or refunds as reparations for slavery. The scams are given credence when some taxpayers actually get money.

The IRS received more than 77,000 tax returns last year claiming $2.7 billion in reparations refunds, up from 13,000 the year before. Last year, the IRS discovered that some erroneous refunds were being issued but was only partly effective in stopping them.

The Treasury inspector general for tax administration, David C. Williams, said in testimony this week before the Senate that refunds of more than $80,000 for each spouse in a married couple were issued "in some instances."

In 2000 and the first four months of 2001, Williams said, more than $30 million in erroneous reparations payments were paid. After April of last year, a computer program developed by the inspector general identified an additional $16.1 million in claims before they were paid.

The Washington Post, citing an unidentified official, reported that one IRS employee is under investigation for allegedly helping process returns that claimed the credit. At least 12 current and former IRS employees, all low-level workers in processing centers, applied to receive such a credit, the newspaper report said.

Typical scams use terms such as "black investment taxes," "reparations for African-Americans" or a "black inheritance tax refund."

This is the first indication of what these scams cost the government. Most of the mistaken payments were for about $43,000, a figure Essence magazine suggested in 1993 as the updated value of 40 acres and a mule, which some freed slaves were given under an order by a Union general during the Civil War.

The tax agency is now trying to recover the money it paid out, though officials would not disclose how much has been collected.

Starting Monday, the IRS will be begin levying a $500 fine on taxpayers who do not withdraw the claim if they have been caught.

* ___

On the Net:

Internal Revenue Service: http://www.irs.gov

Treasury inspector general: http://www.ustreas.gov/tigta


TOPICS: Breaking News; Government; News/Current Events
KEYWORDS: taxreform
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1 posted on 04/12/2002 10:40:19 PM PDT by Jean S
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To: JeanS
That would be form 1040BS
2 posted on 04/12/2002 10:44:24 PM PDT by Jeff Chandler
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To: JeanS
I was picked on in eighth grade. So I gave myself an additional deduction of $5000.
3 posted on 04/12/2002 10:46:34 PM PDT by PianoMan
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To: JeanS
Ha!,hee,ha,ho,ha,oh man.

Wait why am I laughing?

Oh yea,because this is so f#^&+ing outrageous I can't belive it!

4 posted on 04/12/2002 10:51:47 PM PDT by mdittmar
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To: JeanS
To be fair to the IRS here, its not that they looked at the credits and approved them, it is just that the IRS takes 98% of the people at their word. Still, they are a bunch of freedom-hating jackasses and the whole thing should be done away with in favor of a National Sales tax, collected by the States (so that there is less redundancy in tax collection).
5 posted on 04/12/2002 10:53:41 PM PDT by Rodney King
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Comment #6 Removed by Moderator

To: JeanS
This is some serious tax fraud. Of course, we'd probably be asking too much to expect prosecutions - that would be insensitive.
7 posted on 04/12/2002 10:59:41 PM PDT by RodgerD
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To: JeanS

The Internal Revenue Service mistakenly paid out more than $30 million to tax filers seeking nonexistent slavery tax credits in 2000 and 2001, according to a Treasury Department investigation.

Mistakenly?

I thought that's what refunds are all about. You know, reparations to Tax Slaves? Granted the reparations ain't much but hey, the more slave you are the bigger that refund should be. Tax cuts for the rich,(the real slaves in the system):

Walter Williams, World Net Daily, 10-25-2000

According to the most recent U.S. Treasury Department figures, in 1997 the top 1 percent of income-earners (those with income of $250,000 and higher) paid 33 percent of all federal income taxes. The top 5 percent of income-earners ($108,000 and over) paid 52 percent, and the top 50 percent ($36,000 and over) paid 96 percent of income taxes. Guess what the bottom 50 percent of income earners paid?

But then I think it's time to change tax systems myself:

Keyes on Taxes & Government Spending:


8 posted on 04/12/2002 11:06:25 PM PDT by ancient_geezer
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To: *Taxreform

9 posted on 04/12/2002 11:08:42 PM PDT by Libertarianize the GOP
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To: JeanS
First, Friday night late is when the real, real embarrassing news is relased by the feds so this has got to have a grain of truth in it.

Second, you mean all I had to do this year was pencil in $80k on line 33 and the check was in the mail.

Unf---king believable!!!!

10 posted on 04/12/2002 11:33:58 PM PDT by Amerigomag
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To: JeanS
A $500 fine? Shit, Bet yer bottom dollar if this ol' sys admin whitey tried tax credits anywhere near this crap, I would be in jail..
11 posted on 04/12/2002 11:56:03 PM PDT by Michael Barnes
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To: JeanS
Starting Monday, the IRS will be begin levying a $500 fine on taxpayers who do not withdraw the claim if they have been caught.

I don't believe I'm off the mark to say that whites would never be offered such a pass--they'd be prosecuted for tax fraud.

12 posted on 04/13/2002 12:07:16 AM PDT by Lion's Cub
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To: JeanS

This is really ugly. I hope it is not a portent of things to come.

At a minimum, we'll have to rein in the diversity coordinators at certain IRS processing centers. Things may have gotten a little too diverse in some of them.


13 posted on 04/13/2002 12:17:49 AM PDT by Nick Danger
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To: unix
A $500 fine? Shit, Bet yer bottom dollar if this ol' sys admin whitey tried tax credits anywhere near this crap, I would be in jail..

No doubt. And since when does a "regulated agency" declare penalties ? Who elected these MFs ?
(rhetorical BS)

14 posted on 04/13/2002 12:18:21 AM PDT by dread78645
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To: JeanS
I'm a slave to love. Where's my credits?
15 posted on 04/13/2002 12:22:12 AM PDT by A CA Guy
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To: PianoMan

Sorry. That credit only applies if your great-great-great-great-great-great-great-grandfather was picked on.

16 posted on 04/13/2002 12:26:26 AM PDT by Cultural Jihad
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To: Cultural Jihad
Not picked ON.....picked COTTON
17 posted on 04/13/2002 3:02:51 AM PDT by OldFriend
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To: JeanS
Now we know why Jessie Jackson has IRS immunity...his people have taken it over.
18 posted on 04/13/2002 4:20:35 AM PDT by Rudder
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To: Rudder
That would also explain the life-ruining harassment of the IRS
against good US citizens who pay their taxes but are conservative.
19 posted on 04/13/2002 4:29:15 AM PDT by Diogenesis
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To: Rudder
Now we know why Jessie Jackson has IRS immunity...his people have taken it over.

That could be applied to almost any U.S. Federal Government Agency.

I sure feel safer, knowing that a U.S. Federal Government Agency
is now in charge of airport security. < /sarcasm>

20 posted on 04/13/2002 5:27:32 AM PDT by Eagle9
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