Alert: Refund Scheme - Military Disability Compensation

June 4, 2012
Press Release

The IRS recently published an alert about phony refund schemes related to military disability compensation.  Emails appearing to come from the Defense Finance and Accounting Services are being sent to individuals, including military members, military retirees, and civilian employees. The emails indicate that individuals who are receiving disability compensation from the Department of Veterans Affairs may be able to obtain additional funds from the IRS.  Although the email appears to come from DFAS and displays a .mil email address it is actually from a non-government email account.  Do not send your personal information or copies of your tax returns and 1099s to the individual listed in the email.  The IRS does not initiate contact with taxpayers by email to request personal or financial information.

To avoid these email schemes in the future, the IRS recommends you be suspicious of any of the following:

  • Fictitious claims for refunds or rebates based on false statements of entitlement to tax credits
  • Emails from unfamiliar senders asking for personal information
  • Internet solicitations that direct individuals to toll-free numbers and then solicit Social Security numbers or other personal information

To learn more about how to react to suspicious e-mails, you may want to visit the following website:,,id=155682,00.html