Reparations Tax Scam

Believe it or not, African-American taxpayers are actually being scammed into filing slavery reparation claims. Americans of Indian decent are also included in the scam. The IRS has issued warnings urging taxpayers to avoid reparation scams because they will not be processed and the people charging money for assistance in filling these claims are bogus. No such law exists. After the civil war, Congress did pass a law, but Andrew Jackson vetoed that law and the reparations of 40 acres and a mule.

Debates on slave reparations have become popular in the last few years. There are good arguments for and against slave reparation but nothing has been settled. In 2007, several state legislatures did agree on resolution apologies, but no laws.

According to the IRS, slave reparation claims reached 2.1 billion in 2001 and continue to rise. A subject as sensitive as slave reparations could be easily manipulated, however, filing income taxes based on honest information is hard enough. Some taxpayers get away with exaggerating the truth and even that is asking a lot. The IRS reported that some claims requested $40,000 to $80,000 for a tax credit that does not exist. What’s worse is the fact that the people manipulating these scams were paid good money to file these useless claims. Consequently, taxpayer’s were warned that failure to correct said claims could result in a $500 penalty per taxpayer.

In conclusion, any reparation claim is a scam. Times are tight, but the IRS is not the place to bring the fight.