Earlier this week, the IRS warned taxpayers about a tax scam that is\u00a0 becoming increasingly common.\u00a0 The scam involves a large, fraudulent refund being deposited in a taxpayer’s own bank account.<\/p>\n
In this scam, the perpetrators hack into a tax return preparer’s computer files to obtain a taxpayer’s personal information.\u00a0 They then file a fraudulent tax return in the taxpayer’s name that generates a large refund. The refund is deposited electronically by the IRS in the taxpayer’s own bank account.\u00a0 As soon as the deposit appears in the taxpayer’s bank account, the taxpayer is contacted by the perpetrators by telephone. In one version of the scam, the person calling pretends to be with a debt collection agency working for the IRS. The person calling states that the IRS issued an erroneous refund and demands\u00a0that the taxpayer pay the amount to the alleged debt collection agency.\u00a0 In another version, the taxpayer receives an automated call with a recorded voice saying the message is from the IRS and threatening the taxpayer with criminal fraud charges, an arrest warrant, and a\u00a0 “blacklisting\u201d of their Social Security Number if the taxpayer does not call a telephone number to return the refund.<\/p>\n
If a taxpayer pays the refund to the scammers, the matter will take some time to resolve.\u00a0 The IRS’s records will show that the refund, which was generated by a fraudulent return, was deposited in the taxpayer’s own bank account.\u00a0 The taxpayer will have to convince the IRS that he or she was the victim of a scam.<\/p>\n
If an unexpected refund appears in your bank account (or you receive it as a paper check), do not<\/strong>\u00a0pay the money to someone who contacts you by telephone or by e-mail.\u00a0 First, you should determine whether this is the refund you were expecting or instead a refund generated by scammers.\u00a0 Talk to your tax return preparer and, if necessary, call the IRS directly. Second, if the refund is not legitimate, follow the established procedures for returning an erroneous refund to the IRS.\u00a0 If the refund was deposited directly into your bank account, contact your bank or financial institution and ask them to return it to the IRS.\u00a0 Then contact the IRS (800-829-1040) to explain why the deposit is being returned.\u00a0 If the refund came to you as a paper check, write “Void” in the endorsement section on the back of the check and mail it to the appropriate IRS address (see below) with a note saying “Return of erroneous refund check because (and give a brief explanation of the reason for returning the refund check).”<\/p>\n Make sure your tax return preparer is taking appropriate security measures with your information.\u00a0 Digital information should be stored in a secure, encrypted form.\u00a0 E-mailing documents back and forth to your preparer is not a secure form of communication.\u00a0 Your preparer should use some type of secure portal for receiving sensitive digital information from you and sharing it with you.<\/p>\n If you file your tax return and the IRS rejects it because a return has already been filed with your Social Security Number, contact the IRS immediately and follow the steps in the Taxpayer Guide to Identity Theft<\/a>.<\/p>\nOther Issues<\/h3>\n
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