The IRS recently announced that it will begin sending monthly direct deposit payments in July to those who qualify through the American Rescue Plan Act. This means that those who qualify will get up to half of their child tax credit in monthly installments and the other half when they file their 2021 taxes. Of course, with any new government initiative comes scammers.
When the government makes its way into the news, impostor scams follow close behind. Several variations of this fraud have been discovered already and all are designed to defraud parents and guardians out of their rightful funds. In most versions of the scam, imposters pretend to be an IRS representative offering instructions to “help” the victim receive their funds. However, following the instructions may lead to losing money instead of receiving money.