IRS Warns of a New Tax Refund Scam

Tax Controversy

IRS Warns of a New Tax Refund Scam

The IRS has issued a consumer alert on a new form of an identity theft. Criminals have devised a tax refund scam that entails depositing fraudulent tax refunds into an individual’s bank account and then asking for the money to be returned to them.

Tax Refund Scam Criminals

  1. Hack into a personal computer to steal an individual’s tax information;
  2. Use the stolen data to file a fraudulent tax return;
  3. Have the refund from the fraudulent return deposited into the victim’s bank account; and
  4. Tell the victim the deposit was made in error and asks the victim to return it. Criminals typically pose as debt collectors hired by the IRS or send the taxpayer an automated call impersonating the IRS.

Should you encounter one of these scammers, please follow the guidance the IRS provides in Tax Topic Number 161 https://www.irs.gov/taxtopics/tc161. If you have any questions or would like more information on how to prevent this type of tax refund scam, contact your Withum tax advisor.

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