Identity Theft Refund Fraud

Identity Theft

There have been lots of stories over the past few months on identity theft and how the information can be used against you. You may have heard something about stolen identity tax fraud. You may even have been a victim of it. It’s the biggest tax scam around now.

We used to watch movies see people meeting up with Guido to get someones identity, or maybe people entering into the witness protection program and a new identity being created for them. Maybe you watched Matt Daman, aka Jason Bourne/ CIA Agent, in the Bourne Film Series where he had identities all around the world.

This is how it works. Someone steals your identity, files a bogus tax return in your name before you do and collects a refund check from the IRS. It’s so simple, you would think it would never work, but it does. It’s been around since 2008, and you’d think the IRS would have come up with a way to stop it, it hasn’t. Instead the scam has gone viral, tripling in the past three years.

The IRS estimates that it sent out nearly three million fraudulent refunds to con artists in 2014. According to a report from the Government Accountability Office, it cost tax payers $5.2 billion. The Treasury Department believes the numbers are much higher than that. Proving once again, what every con man already knows: there is no underestimating the general dysfunction and incompetence of government bureaucracy.

Doug and Tammie share their experience in someone filing their taxes for them and it wasn’t their CPA!

Below are the links to the IRS to aide you in cleaning up your Tax Fraud:

• https://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft

• Complete IRS Form 14039, Identity Theft Affidavit, if your efiled return rejects because of a duplicate filing under your SSN or you are instructed to do so. Use a fillable form at IRS.gov, print, then attach the form to your return and mail according to instructions.

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