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IRS Urges African-Americans to Beware of Tax Refund Scams

Scam artists are bilking African-Americans nationwide by charging them for information about a phony “slave reparation” tax credit, the latest in a line of schemes dealing with money for descendants of slaves, federal officials said Friday, October 6, 2000. The Internal Revenue Service said its tax centers nationwide all have received thousands of slave reparation-related claims in the last few months. But because there is no law allowing reparations, the IRS rejects the claims. The claims are prompted by scam artists, who charge money for the false information on how to file the claims.

Because there is no such law providing for such reparations, the IRS rejects such claims. Taxpayers who repeatedly file claims after receiving a denial notice are subject to a $500 penalty for filing a frivolous tax return.

We are providing links to several articles about this scam including the official statement from the Internal Revenue Service. You can read the statement, which is in Adobe PDF format. If you do not have the Adobe Acrobat Reader installed on your computer, you may download it from the Adobe web site.

Black Seniors Targeted by Reparations Scam (

IRS Cautions African-Americans on Slavery Reparations Scam (IRS)

IRS Warns People About Tax Scam (The Milwaukee Channel)

Urban Legend Black Tax Credit

IRS warning blacks of slavery scam (Online Athens)

Slavery Reparations Tax Scam Reported in South Florida (Polk Online)

Slavery Tax Credit a Scam (Times Online)

Almost 600 People in New Jersey Have Been Bilked by Con Artists (Philadelphia Inquirer)

In addition, the Cook County (Chicago, IL) State’s Attorney’s Consumer Fraud Division is issuing a consumer alert warning people, particularly elderly African Americans, not to respond to mail solicitations seeking personal information in return for a cash settlement from the federal government called “slavery reparation.”