Seniors watch for scams as rebates approach

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April 12, 2008

By Damian Mann

Mail Tribune

Seniors should be on guard for scams targeting their federal rebate checks that the IRS will send out this May, warned U.S. Rep. Greg Walden Friday in Medford.

Speaking before about 30 residents of Larson Creek Retirement Center in Medford, the Hood River Republican said con artists have been phoning or e-mailing seniors trying to get bank account information.

"It's a fraud," said Walden. "Nobody from the IRS is going to call you."

The IRS will pay taxpayers from $300 to $600 and will begin sending out the checks or direct deposit the money into accounts starting in May through summer.

The money, which will benefit 130 million Americans, is part of an economic stimulus program that is supposed to soften the blow of the economic downturn.

"It was designed to get money into the pockets of Americans to reduce the threat of recession or at least to make it shallow," said Walden.

Larson Creek resident Otto Loetscher said the stimulus amount wouldn't be enough to make much difference to the average citizen.

"They should put another zero on the $300," he said, jokingly. "It hardly pays for the gas to go to the bank."

Wendie Nicovich, a manager at Larson Creek, said several residents had been called by scam artists but none fell for it because of advance warning.

"Luckily, the information had gotten out to the residents," she said.

Barbara Sowder, territory manager for the IRS, said, "Please don't get taken in by someone pretending to be us or they will rip you off."

As the April 15 deadline for filing tax returns approaches, Sowder said there are misconceptions and misunderstandings about the stimulus check.

"A lot of people don't realize you have to file the tax return to get the check," said Sowder.

Even people who don't normally file because they don't make enough money, need to send in a tax form to the IRS.

If someone has already filed their 2007 return, they don't have to do anything else to get the rebate check, she said.

Those filing must have earned at least $3,000 in qualifying income to get the rebate money, Sowder said. Disability income or certain kinds of government retirement programs might not qualify, she said.

Larson Creek resident Bahni Lee objected to the way the stimulus program is set up, because many people who receive benefits for disabilities won't get a check.

"To me that sounds like discrimination," she said.

Sowder said the new law does leave out some people who would benefit from even a small amount of money. "It's a form of discrimination. I'm sorry you don't qualify."

Sowder dispelled other misconceptions about the stimulus money.

She said the IRS won't take the money back on next year's taxes. If someone files after the April 15 deadline, she said they will be entitled to get the money, though it will come later.

Because some low-income people have filed returns to get the rebate check, there has been a side benefit, said Sowder. Many have discovered they get a telephone excise refund of $30, or find out they are entitled to get other money back, she said.

"There have been some good unintended consequences," she said.

Walden also noted the stimulus check is not subject to federal tax.

Reach reporter Damian Mann at 776-4476 or dmann@mailtribune.com.

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