Tax Refunds being stolen

[RSKY]

Had my quarterly talk with my Fidelity Financial lady last week. Among the topics we discussed was income taxes and the problems some people are having. Both of my sisters use tax accountants due to complicated returns with jobs, farm income, etc. and both their accountants have told them that it is going to take more time and cost more due to some of the tax law changes and requirements of Obamacare. The Fidelity lady said that there is another problem that has already struck some of her clients. Somebody has used stolen information and filed a tax return in the clients name. Had the money direct deposited then moved it out of the country. She said the IRS will do nothing. As far as they are concerned the refund has been paid. Said one of her clients was a self employed businessman who expected a $28,000 refund and somebody already has his money.

I was amazed that somebody had already filed their tax return before the middle of January! But if I expected that kind of money I would file as soon as I could.

Anyway, she said to file ASAP. Don't mess around and wait, get your return in a quickly as possible to beat the scammers.

Don't flame me for this post. I'm only relaying what she told me. I have no idea if it is true or not but she was dead serious in telling me to not wait about filing and she has never steered me wrong in the two years I have dealt with her.

RSKY

 

[HEC]

I've heard on the news also to file quickly for some of the very reasons you have stated .

 

[MacLawn]

Dagnabbit, if it ain't the gubmint stealing from us, it's some other thief.

 

[MinnesotaEric]

Had my quarterly talk with my Fidelity Financial lady last week. Among the topics we discussed was income taxes and the problems some people are having. Both of my sisters use tax accountants due to complicated returns with jobs, farm income, etc. and both their accountants have told them that it is going to take more time and cost more due to some of the tax law changes and requirements of Obamacare. The Fidelity lady said that there is another problem that has already struck some of her clients. Somebody has used stolen information and filed a tax return in the clients name. Had the money direct deposited then moved it out of the country. She said the IRS will do nothing. As far as they are concerned the refund has been paid. Said one of her clients was a self employed businessman who expected a $28,000 refund and somebody already has his money.

I was amazed that somebody had already filed their tax return before the middle of January! But if I expected that kind of money I would file as soon as I could.

Anyway, she said to file ASAP. Don't mess around and wait, get your return in a quickly as possible to beat the scammers.

Don't flame me for this post. I'm only relaying what she told me. I have no idea if it is true or not but she was dead serious in telling me to not wait about filing and she has never steered me wrong in the two years I have dealt with her.

RSKY

Did Fidelity claim there was a data breach of their system?

 

[aczlan]

Another reason to withhold as little as possible and try to have to pay the IRS a little vs getting a refund.

Some info from the DOJ:

Stolen Identity Refund Fraud (SIRF) Enforcement

One of the Tax Division’s highest priorities is prosecuting people who use stolen identities to steal money from the United States Treasury by filing fake tax returns that claim tax refunds. Working to stop Stolen Identity Refund Fraud, or SIRF, is vital because these schemes threaten to disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers and to cost the United States Treasury billions of dollars.

SIRF crimes are complicated to prosecute because they are often perpetrated by large criminal enterprises with individuals at all stages of the scheme: those who steal the Social Security Numbers (SSN) and personal identifying information, those who file false returns with the Internal Revenue Service (IRS), those who facilitate obtaining the refunds, and the masterminds who promote the schemes. These criminal enterprises are able to exploit the speed and relative anonymity of highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments.

Identities used in SIRF crimes may be stolen from anywhere. SIRF criminals have used social security numbers stolen from institutions such as hospitals, nursing homes, and public death lists, thereby exploiting some of the most vulnerable members of our communities—the elderly, the infirm, grieving families. However, everyone with a social security number is potentially vulnerable to having their identity stolen. According to the IRS, from 2008 through May of 2012, the Service has identified more than 550,000 taxpayers who have had their identities stolen for the purpose of claiming false refunds in their names.

Typically SIRF perpetrators file the false returns electronically, early in the tax filing season so that the IRS receives the false SIRF return before the legitimate holder of the social security number has time to file their return. The SIRF perpetrators arrange to have the refunds electronically transferred to debit cards or delivered to addresses where they can steal the refund out of the mail.

SIRF crimes cross state borders, and increasingly, national borders. Successfully prosecuting the wrongdoers requires a national strategy of information sharing and coordinated prosecution. The nation-wide reach of the Tax Division’s centralized criminal tax enforcement and its ability to coordinate closely with every United States Attorney’s Office, and through them local law enforcement and police, makes it possible for the Government to respond efficiently and forcefully to the explosion of SIRF crimes. Moreover, the Tax Division has created expedited procedures for working with the United States Attorneys’ Offices on SIRF crimes to ensure the quickest possible investigation and prosecution of these cases. Additionally, the Division works closely with the Internal Revenue Service to quickly share information obtained from our investigations and prosecutions of SIRF cases that the IRS can use to make it more difficult for the schemes to be successful by blocking the refunds from being paid in the first place.

The Tax Division has had considerable success in SIRF prosecutions, which have generated long sentences for those convicted of SIRF crimes. This page contains links to articles, websites, and press releases with information on how the Justice Department and IRS are dealing with SIRF crimes, guidance for citizens whose identities have been stolen and used to file false tax returns, and efforts of the Justice Department to prosecute these crimes.

- Kathryn Keneally, Assistant Attorney General for the Tax Division

The IRS also has a page with a form to fill out: Taxpayer Guide to Identity Theft they don't say if they will re-refund your money.

Aaron Z

 

[dusty3030]

I always try break even / owe some in April to the feds and the state.

 

[RSKY]

Fidelity did not have a breach of their system. This was one of the lady's clients telling her what had happened to him. They have nothing to do with taxes. Her point was to file as quick as I could to keep somebody else from using my info to file and get my refund. Not that it will be that much.

I have dealt with other financial companies and Fidelity beats them all as far as I'm concerned. Of course that could be because of the lady I deal with.

RSKY

 

[ashwood486]

Thank you , I have been to a few meetings with the IRS and its never fun or the chances of anything being fair or in your favor is almost impossible. I will talk with my accountant today. thanks again

 

[KennyG]

I hope someone files for me this year. I always owe some.

 

[kcflhrc]

What is a Refund? Is that what I would get if there weren't so many illegals in this country sucking the system dry?