The Internal Revenue Service is warning taxpayers of a quickly growing scam involving erroneous tax refunds being deposited into taxpayers’ bank accounts. The number of potential taxpayer victims jumped from a few hundred to several thousand this month after the IRS Criminal Investigation division discovered more tax professionals’ computer files have been breached.
After stealing client data from tax professionals and filing fraudulent tax returns, criminals are using the taxpayers’ real bank accounts for the deposit. Thieves are then using various tactics to reclaim the refund from the taxpayer.
In one version, criminals posing as debt collectors, acting on behalf of the IRS, contact the taxpayers to say a refund has been deposited in error and they ask the taxpayers to forward the money to their collection agency.
In another version, the taxpayer who received the erroneous refund then gets an automated call with a recorded voice claiming to be an IRS representative. The person threatens the taxpayer with criminal charges for receiving the refund fraudulently and demands it be returned.
The IRS urges taxpayers to follow established procedures for returning an erroneous refund to the agency. You can find those at Tax Topic Number: 161 – Returning an Erroneous Refund. The IRS also encouraged taxpayers to discuss the issue with their financial institutions immediately.
As always, FineMark is here to help. If you have questions or concerns, please feel free to call us or stop by your local office.
