Did you get an unexpected large deposit in your bank account? Is it from the IRS? And, you haven’t filed your taxes yet? Watch out! You are the victim of the latest tax refund scam.
Your next steps are critical as once the IRS deposits money into your account you are legally responsible for that money whether it was supposed to be there or not.
Like prior years, organized crime is filing tax returns before the victim does. But the new twist is that they are having the “refund” deposited to the victim’s bank account. Then they call the victim and pose as an IRS agent who says the return was fraudulent and tells the person to send the money back. In some cases, they pose as the collection agency for the IRS and tell the person to send them the money. They leave menacing voice mails and use robo calls to leave intimidating recorded messages. The message threatens the victim with criminal charges, arrest and “blacklisting” of their Social Security number. They leave a phone number for the victim to call for instructions to return the money.
Scammers are getting this information from the many security breaches and are now stealing data from tax preparation professionals’ computers/cloud system.
Steps to Take Now
If this happens to you or someone you know you must act immediately. According to the IRS: if the refund was a ‘direct deposit’ call the Automated Clearing House (ACH) department of your bank or financial institution and have them return the refund to the IRS. Call the IRS at 800-829-1040 to explain why the direct deposit is being returned. Interest may accrue on the erroneous refund.
If the refund was a paper Treasury check and you haven’t cashed it, write “void” in the endorsement section on the back of the check. Mail the check immediately, but no later than 21 days, to the IRS office for your location which is listed on the bottom text line in front of the words:” tax refund.” Include a short note stating “return of erroneous refund check” because ‘a brief explanation of the reason for returning the check.’
If you have cashed the check, immediately, but no later than 21 days, mail a personal check, cashier’s check or money order to the IRS office for your location. On the front of this check/money order write “Payment of Erroneous Refund”, the tax year and your taxpayer identification number (social security number). If you do not have a copy of the check sent to you call the IRS at 800-829-1040 and explain to them that you need information to repay a cashed refund check. With the check, include a brief explanation of the reason for returning the refund. Repaying an erroneous refund in this manner may result in interest due the IRS.
Since the scammers have your routing and account number seriously consider closing your account or take other steps recommended by the bank. Speak with your tax preparer as the breach may have come from their files.
You should place a free 90-day fraud alert on your accounts by contacting one of the three credit bureaus. That company is required to tell the other two. Request a credit report to make sure your other accounts have not been accessed.
The Federal Trade Commission (FTC) also has an ID Theft Recovery Plan to help you. To access it click on https://www.identitytheft.gov/#what-to-do-right-away.
Steps to Take Next
As in the past filing early is good. If you don’t have an IRS PIN number – get one for next year. To do so you need IRS form 14039 which can be obtained by clicking: https://www.irs.gov/pub/irs-pdf/f14039.pdf. Victims of Income Tax Refund Fraud check Box 1 and non-victims check Box 2. For security reasons the form must be mailed to the IRS and the IRS will send the PIN number back by mail for your 2018 tax return and will mail you a new PIN number every year.
