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With clients receiving 1099s and other forms reporting 2002 tax information, it's worthwhile remembering a news release the IRS issued on 5/1/02. In that news release, the IRS warned taxpayers of a fraudulent scheme using fake bank correspondence to obtain the taxpayer's personal and banking data. The correspondence encloses a phony IRS form seeking detailed personal and financial data, and urges the recipient to fax the completed form to a specified number within seven days to avoid 31% withholding on the account's income. The scheme promoters then use this information to gain access to the taxpayer's personal data to run up credit card charges, apply for loans or other benefits, etc. News Release IR-2002-55