The IRS said the scheme usually works by the victim paying the scam operator a fee for preparation of a false refund claim and possibly a percentage of any refund received. This hoax fleeces the victims for the up-front preparation fee. Plus, the law does not allow such a refund of Social Security taxes paid, so participants could be subject to a penalty for filing a false tax return.

“The IRS is very concerned that some people in the metro Atlanta area have fallen for this scam,” said IRS spokesman Mark Green. “If something sounds too good to be true, it probably is. Getting a refund of Social Security taxes is generally not an option and, in this case, it’s not legal.”

The federal government discovered the scam when workers in the Atlanta IRS office noticed several people coming in and asking for copies of their Social Security income statements. When questioned, some of the people explained a person was preparing refund claims for them.

The IRS said it is still gathering information and working to stop the scam. But taxpayers who got a refund from one of the false claims before the scam was detected must return the funds. If they have cashed the check, the IRS said it will usually work with them to arrange an immediate return of the funds.