To anyone who is looking into filing a 1099 OID to "zero their account:"
There are people out there who will tell you that it is possible to file a 1099 OID and get money from the IRS, which will "zero your account." You send in bills (e.g., credit card statements or anything you bought) and through some process, the IRS will "reimburse" you for those expenses.
I received a phone call from an IRS agent who is working for the IRS's Criminal Investigation Division. The agent told me that the IRS is cracking down on this and people who are pursuing this will be prosecuted because it is a scam.
Before he phoned, I had found the following on the IRS's Web site:
Filing False or Misleading Forms: The IRS is seeing scam artists file false or misleading returns to claim refunds that they are not entitled to. Frivolous information returns, such as Form 1099-Original Issue Discount (OID), claiming false withholding credits are used to legitimize erroneous refund claims. The new scam has evolved from an earlier phony argument that a “strawman” bank account has been created for each citizen. Under this scheme, taxpayers fabricate an information return, arguing they used their “strawman” account to pay for goods and services and falsely claim the corresponding amount as withholding as a way to seek a tax refund.
Beware of this, it will get you and your loved ones in trouble!
The Following User Says Thank You to sandrapinkoski For This Useful Post:
Bless your Heart Sandra!!! My son is so d....ed sure all this crap is real, no matter what I tell him. I sent him some stuff last week and because it had UCC mentioned in it, it was returned. Im so mad...if someone had just taken a seconded to read it, it was clearly saying it was a scam.
So this week, I have copy and pasted 2 other replies as welll as yours (hope you dont mind) and if I see any more, Im going to send those.
Anyone else have days they just want to scream????