Don’t be fooled by new IRS tax scam
The IRS is warning about a fast-growing scam targeting your tax refund.
“The number of potential taxpayer victims jumped from a few hundred to several thousand in just days,” the IRS said this week.
Essentially the scam works like this: Crooks are hacking into professional tax preparers’ computer files to steal their clients’ Social Security numbers, bank account information and other sensitive data.
The information is then used to file fraudulent tax returns claiming a refund, with the money deposited into the taxpayer’s actual account.
Thieves then contact the taxpayer — posing as an IRS agent or a debt collector working for the agency — explaining that the refund was an error and demanding that it be returned.
Crooks may threaten taxpayers with criminal fraud charges, an arrest warrant or “blacklisting” their Social Security number if they don’t comply.
The IRS said it is continuing to investigate “the scope and breadth of this scheme,” adding that “versions of the scam may continue to evolve.”
People victimized by the scam should contact their tax preparer and also their
financial institution to discuss the need to close their account, the IRS said.
The agency has instructions for returning erroneous refunds, available at www.irs.gov/taxtopics/ tc161.
The IRS noted that taxpayers are obligated to return any improper refunds, and that delays could be costly since interest could accrue.
“I’m sure if you contact the IRS, we’ll work with you on that,” a spokesman said Thursday.
The agency is urging tax professionals to step up security and beware of phishing emails that can download malicious software used to steal clients’ files.
Any theft of tax data at a business should be reported to the IRS stakeholder liaison in the affected state.
Taxpayers who try to file a return that gets rejected because a return with their Social Security number has already been filed should follow the steps in the agency’s Taxpayer Guide to Identity Theft at www.irs.gov/newsroom/taxpayerguide