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Tax Return Scam Takes $5 Billion from Taypayers

474 views · Published 4 February 2015 · 2:59 · Indexed 26 September 2026

Channel: FOX NASHVILLE · 2015 · News & Politics

NASHVILLE, Tenn. -- You spend all year paying your taxes and now you're looking forward to your tax return.

Except for many, it's not there.

It's been called a "Tsunami of Fraud" by the US Attorney and it's happening across the country as well as right here in the midstate.

Almost anyone with your social security number and name can get their hands on your return if you haven't already.

According to this Government Accountability Office investigation in August, scammers took more than five billion dollars in 2013 tax returns.

That number is expected to multiply for 2014, likely affecting thousands of us right here in the midstate if last year is any indication.

Scott Stone of Advanced Tax Income Services says his firm saw about 75-80 returns out of 7,500-8,000 last year.

"And that's an alarmingly high number."

Identity theft tax fraud started around 2008 with e-filing, taking lawmakers by surprise.

Congressman Jim Cooper (D - TN, 5th District) says, "We really didn't think they'd be attacking the irs this way."

The federal government can't compare information on tax forms with W-2's from employers since those aren't required with electronic filing.

Refunds are issued within a couple of weeks, though tax information isn't matched until July.

More than 3-million phony tax returns were filed last year.

The IRS says it has more than 3,000 employees working to identify theft-related issues including refund fraud.

And identity theft related criminal investigations increased 66-percent between fiscal years 2012 and 2013.

Still, criminals continue to fly under the radar, filing more returns in smaller amounts.

To help keep your identity safe, carefully guard your personal information.

Shred any papers with things like your social security number and birthdate.

And keep your social security card in a safe place, not your wallet.

You should know the government is working to stop these tax return thieves.

The GAO found that the IRS prevented about 24-billion dollars in identity theft refund fraud last year.

And the number of indictments and sentencing for those behind these crimes doubled in 2013.

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Tax Return Scam Takes $5 Billion from Taypayers

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