It’s that time of year again: Tax-related scam season. This year, the Internal Revenue Service (IRS) has already issued a warning of new spins on an old scam. And they’re doozies. (Note: We always recommend that a business owner seek advice from their trusted legal, accounting, financial or tax advisor regarding taxes as your situation or issue may be different from someone else’s.
The Basic Scam and New Versions
Basic Scam Version #1 | What the criminal does
- Gains access to tax preparer’s or taxpayer’s computer to steal taxpayer data.
- Uses the stolen information to file the tax return in the guise of the taxpayer.
- Has refund deposited into taxpayer’s bank account
- Contacts the victim, telling them the money was mistakenly deposited into their account and asking them to return it.
New Scam Version #2 | What the criminal does
- Gains access to tax preparer’s computer to steal taxpayer data.
- Uses the stolen information to file the tax return in the guise of the taxpayer
- Has refund deposited into taxpayer’s bank account.
- Criminals pose as debt collection agency officials acting on behalf of the IRS.
- Thief contacts the taxpayer to report an erroneous refund deposit
- Theif requests that the taxpayer forward the money to the thief’s collection agency.
New Scam Version #3
- Gains access to tax preparer’s computer to steal taxpayer data.
- Uses the stolen information to file the tax return in the guise of the taxpayer
- Has refund deposited into taxpayer’s bank account.
- The taxpayer who received the erroneous refund gets an automated call with a recorded voice saying the caller is from the IRS.
- The recording threatens the taxpayer with criminal fraud charges, an arrest warrant and a “blacklisting” of his or her Social Security number.
- The recorded voice gives the taxpayer a phony case number and telephone number to call to return the refund.
- The taxpayer who received the erroneous refund gets an automated call with a recorded voice saying the caller is from the IRS.
- The recording threatens the taxpayer with criminal fraud charges, an arrest warrant and a “blacklisting” of his or her Social Security number.
- The recorded voice gives the taxpayer a phony case number and telephone number to call to return the refund.
What taxpayers should do if someone contacts them regarding an erroneous refund:
- Before having any discussion with the individual who contacts you, contact your tax preparer, financial, or legal advisor regarding the contact.
- The IRS encourages taxpayers to discuss the issue with their financial institutions because there may be a need to close bank accounts.
- Taxpayers receiving erroneous refunds also should contact their tax preparers immediately.
- There are established procedures taxpayers should follow to return erroneous funds to the IRS.
- See IRS Tax Topic Number 161, “Returning an Erroneous Refund. It has full details about how to return the money, including the actual mailing addresses where a taxpayer should send a paper check, if necessary. By law, interest may accrue on erroneous refunds.
Via: IRS | IRS Tax Tip 2018-32, March 1, 2018