| 'Slave Reparations' Scams Target Black Seniors | |
By David Emery
Old scams targeting elderly black people keep resurfacing, exploiting false rumors that African Americans are due tax refunds based on a decades-old "Slave Reparations Act" and raising fears among authorities that con artists are bilking victims of money and personal information.
"There is no such provision in the tax law," the Internal Revenue Service stated in an October 2000 press release . "Those who pay to have reparations-related tax claims prepared are being deceived." Moreover, those who actually file such claims on their returns may be subject to penalties.
Rumors that black seniors are eligible for slave reparations tax credits have circulated for many years. The IRS says it was swamped with related claims and inquiries in 1994 and 1996, and they're on the increase again. "It's despicable," IRS Commissioner Charles O. Rossotti remarked, "that some are stealing from innocent people by charging fees to prepare what they know to be baseless claims."
The scams take various forms, not always involving a fee. In some cases, as in the email example below, the con artists resort to identity theft, requesting the victim's date of birth and social security number.
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BORN PRIOR TO THE YEAR OF 1928 AND OF THE BLACK ETHNIC RACE? DO YOU KNOW ANYONE WHO WAS BORN UP UNTIL 1927? DID YOU KNOW THAT THE GOVERNMENT IS REFUNDING MONIES TO ANYONE ALIVE THAT WAS BORN UP UNTIL THE YEAR OF 1927 DUE TO THE SLAVE REPARATION ACT? FOR INFORMATION CONTACT: T.R.E.A SENIOR SYSTEMS LEAGUE PO BOX 96472 WASHINGTON, DC 20090-6472 PROVIDE THEM WITH THE FOLLOWING INFO AND AN APPLICATION WILL BE MAILED TO YOU FOR THE ISSUANCE OF A $5000.00 CHECK WHICH CAN BE EITHER ATTACHED TO YOUR SOCIAL SECURITY CHECK OR ISSUED IN ONE LUMP SUM: NAME
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Printed flyers containing the same information have circulated for years in parts of the U.S., primarily in southern states. While there is no "TREA Senior Systems League," there is a "TREA Senior Citizens League," which did not create or authorize this message. Noting that the name of the organization is being used under false pretenses, a spokesman called the message "a nuisance chain letter that is playing on the hopes of our senior citizens." The League has received over 10,000 inquiries from victims so far this year.
Ironically, a bill was introduced into Congress in 1999 to explore the issue of slave reparations. If passed, H.R. 40 would create a commission to study the possibility, but actual reparations, if they are ever approved, would still be many years away.
Authorities warn senior citizens to beware of any attempts by people to charge fees or solicit personal information pursuant to filing "slave reparations" tax claims. For more information, contact the Internal Revenue Service at 1-800-829-1040. 
Related information:
Scam Targets African Americans
Spokane Spokesman-Review, 28 Oct. 2000Slave Reparations Flyer Proves a Hoax
Detroit Free Press, 31 Oct. 2000Hoax Targets Seniors
CNNfn.com, 17 Oct. 2000
