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Sunday, April 14, 2013

There is No Such Thing as a Black Tax Credit

Since April 15th is just around the corner, we've decided to debunk a frivolous tax credit argument--the Black Tax Credit.


This is the kind of thing that gets passed along by email forwards, but this nonsense must stop. You might think that this is an old scam that nobody is falling for, except I recently overheard people talking about it.

In case your loved ones, friends, and neighbors have not fallen for the scam, and you're unaware of the back story, then keep reading.

Apparently, some folks believe that African Americans can claim a Black Tax Credit on their tax return as a reparation for slavery. It seems that the IRS actually gave fraudulent tax filers millions of dollars for this credit in 2002 and 2003. However, there is no provision in the tax code that allows such a credit. As people continue to claim this fraudulent credit, they become subject audits and will end up owing that money plus interest to the IRS.

Here's some advice - don't try to get something for nothing. If you weren't a slave, then don't try to get slavery reparations. It's not going to happen. Nobody's going get 40 acres and mule from the federal government. Move on. Try a new argument, and try to decrease your tax burden with legitimate tax credits. 


Read more here.