Olson also reported that some seniors who filed tax returns this year to get their stimulus checks after not filing for years have discovered that someone else has been using their Social Security numbers on tax returns. ''The IRS does not have adequate procedures to address situations where the identity theft victim does not have a filing requirement,'' she said.
''The IRS urges taxpayers to be extra-vigilant,'' it said in its release, to people claiming that they must provide information to receive their stimulus checks. It stressed that the agency does not contact taxpayers by phone or e-mail about those checks.
Rep. Ron Kind, D-Wis., asked Stiff about the agency's spending of $42 million, ''an incredible waste of taxpayer dollars,'' to send letters to taxpayers, most of whom would file returns anyway, to remind them that they must file a return to get a stimulus check.
Stiff said it was a ''prudent call'' considering that, after Congress approved a similar rebate in 2001, the agency received 27 million calls, causing their systems to crash.
Among other scams, it reminded taxpayers that they are liable for $5,000 penalties for submitting frivolous claims such as a constitutional right to object to military spending.
Others on the list this year were fuel tax credit scams, the offshore hiding of income, the misuse of trusts and the abuse of charitable organizations. It warned people to watch out for tax return preparers who attract clients by promising large refunds and charge inflated fees for their services.