Tax Refunds being stolen

[rekees4300]

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

Yes that's my understanding also. It's a first come first served deal.

Here's a link to the official IRS comments on the subject.

Identity Theft Information for Taxpayers and Victims

 

[Jstpssng]

No need to OVERPAY your taxes in just to get a check (of your own money) back when you file the following year. I owe taxes just about every year (mainly due to investing activities) but also because I claim an extra dependent where I coulWed claim 1 I do two. While that means I do owe by the 15th of Apr it also means I kept my $ all year and spent it a little at a time or saved a little at a time.

Mark

Funny thing; no matter how big your refund is, you will never get a cent of interest. Yet if you file a day late and owe THEM, or underestimate your quarterlies by a certain amount then you better paint a smile on your face while bending over. (And don't ask me how I know this. )

 

[Clint S]

I got hijacked last year lucky for me both returns were filed at around the same time and they flagged them both. 3 trips to the local IRS office and an a few months later I got my refund. I have a pin number now also.

 

[dave1949]

It seems odd that someone could hijack a return by only having access to a SS#. Or, the IRS cuts refund checks with very little cross checking of W2's, 1099's, etc.

A few times I have made errors on my returns and 2-3 years later a letter comes pointing out the error and what to do to fix it, or pay. One time I got more refunded. :laughing:

 

[riptides]

I pay quarterly. I understand it may not be an option for most.

"Refund" is a cottage industry all onto itself. Better to owe a little than wait for YOUR money to come back at you.

 

[houstonscott]

Some are going to surprised the ACA is going to take their refund. All those subsidies are income that there has been no withholding on. HS

 

[mark02tj]

It seems odd that someone could hijack a return by only having access to a SS#. Or, the IRS cuts refund checks with very little cross checking of W2's, 1099's, etc.

If someone has your SSN, they can essentially make fake W2's and file a return with them. How to make a fake W2? Go to Staples/OfficeMax/etc. and buy the forms and software for about $35. Enter some information and send it in. MILLIONS of small businesses will send "paper W2s" to the IRS each year. Somehow all of that paper based information has to get into the IRS computers. They're supposed to be able to scan/OCR it, but a lot of it still has to be hand-keyed and verified. Anyway, it takes a long time to get it in, so if you send in a return and W-2 in Jan/Feb, they're going to process it based on what is sent in with the 1040. Hence, the ability to get fraudulent refunds.

1099's are the same way. And the IRS only checks to make sure that your return reflects at least as much as what was reported on a 1099. Usually, most self employed people will report more on their returns than what's reported on 1099-MISC forms. 1099-INT's are generally issued by banks and are electronically submitted to the IRS. But, again, it takes a long time to get all of that info into the IRS computers and they don't start the cross-checking for quite a while.

Believe it or not, when you send in a "paper 1040", the IRS has people whose job it is to just hand-key all of that information into their systems. That's why the IRS is really pushing electronic filing. They say it's so you get your refund quicker, but the truth is that it saves them from hiring temps to key that stuff in.

 

[mark02tj]

Some are going to surprised the ACA is going to take their refund. All those subsidies are income that there has been no withholding on.

I have also "heard" (but not verified) that if you received subsidies based on a prior year's income, but your income goes up in the current year, that you might have to repay some of the subsidy.

But, HoustonScott, you would have to agree that the benefits of getting all of our citizens covered by health insurance is worth the minor inconveniences that might be caused by the ACA, right? :laughing::laughing::laughing::laughing: (Don't answer that!! It'll get this thread moved the "Friendly Politics" section. )

 

[Country Geek]

Some are going to surprised the ACA is going to take their refund. All those subsidies are income that there has been no withholding on. HS

This is simply and verifably false. A cursory google on "are aca subsidies taxable" would have shown you this.

 

[Country Geek]

I have also "heard" (but not verified) that if you received subsidies based on a prior year's income, but your income goes up in the current year, that you might have to repay some of the subsidy.

This is sort of correct. If you get a subsidy based on estimating your expected income, then it turns out your income was higher and you weren't really eligible, then you have to pay it back. This fact has been twisted by propagandists into the false statement that the subsidies are taxable income. They aren't. But if you claim one that you didn't qualify for, yes you have to pay it back, likely out of your tax refund.

The funny thing is that the same progandists were complaining earlier in the year that you could get subsidies based on estimating your income, they said it was an invitation for fraud. Now the same people are complaining because it actually wasn't since you have to pay back subsidies you claim but weren't entitled to!