IRS warns against so-called slave reparations credit
Thursday, November 8th 2001, 12:00 am
By: News On 6
OKLAHOMA CITY (AP) _ The Internal Revenue Service is warning black Oklahomans to beware of scam artists offering so-called slave reparations credit.
Michael Favors, an IRS agent in Oklahoma City, said people in the community of Tatums were approached by someone who offered to help them claim that credit on their taxes.
The person said the Tatums residents would be charged $50 for help preparing their tax returns to claim the credit, which purportedly could give a person a $40,000 tax credit.
``There is no such provision in the tax law,'' Favors said.
A north Texas promoter of the scheme was convicted of tax violations after a two-day trial in Sherman, Texas, last month. Vernon T. James, 46, of Carrollton, Texas, was convicted of preparing 10 false federal income tax returns for the years 1997, 1998 and 1999.
He solicited clients from churches and said the tax exemption was legitimate.
James could receive up to five years in prison and $250,000 in fines for each count.