Missing Stimulus Checks As A Result Of Tax Fraud

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According to the Federal Trade Commission, criminals are stealing money from naive consumers by promising a third stimulus check.

President Joe Biden approved the American Rescue Plan in March, authorizing a third wave of pandemic-era benefits of up to $1,400 per individual. The payments will be made to qualified families through the end of 2021, according to the IRS.

Earnings and other variables are used by the IRS to determine eligibility and check amount. The vast majority of payouts issued electronically, depending on the information from a recent tax return or a web based application for persons who don’t usually submit returns.

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Meanwhile, some eligible people have yet to receive payments; others who received a first or second round may believe they qualify but may not due to different criteria required for the third round.

According to an FTC advisory released Wednesday, scammers are now sending phony e-mails that appear to be from the IRS, saying consumers may earn a third Economic Impact Payment if they click a link to access a form for further information and help with an application.

The scam is a form of government impersonation scam in which fraudsters claim to be from the Social Security Administration, the Internal Revenue Service, the Centers for Medicare and Medicaid Services, or another government department.

Read More: What You Need To Know About Stimulus Payments And Child Tax Credits In 2022

Con artists frequently promise that something awful will happen or that people would lose out on an advantage if they refused to reveal personal and financial details or pay in cash, gift cards, wire transfers, or cryptocurrencies.

During the Covid outbreak, which was linked to a government imposter scam, over 12,500 Americans filed fraud claims, according to FTC figures. They recorded a loss of around $17.6 million.

The third wave of stimulus checks was automatically sent to the majority of families based on their 2020 tax returns. According to government data, the IRS issued around 163.5 million payments totaling approximately $390 billion as of June 3.

Families that are not required to file a tax return can use the IRS Non-Filer Sign-Up Tool, which can be found on the Advance Child Tax Credit website.

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