Fraud Watch: Tax scams on the scene

The Associated Press
Tax season is almost a wrap. But you still have time to file. And with that comes some situations to be aware of.

This particular scene plays out all too commonly: You gather all of the paperwork, complete the forms and wait for a tax refund. Shortly after filing you receive notice from the Internal Revenue Service that your request for a refund was denied; you were already given a refund based on your 2021 tax return.

Surprise! Welcome to the world of fraudulent tax returns. A criminal accessed your personal data, including your social security number, filed an electronic return, was issued a tax refund based on your information and disappeared. These scams occur at an alarming rate fed by data breaches — unauthorized access to personal information. We have limited ability to contain data breaches beyond those for which we are responsible such as providing unknown callers with personal information (state and federal government agencies do not call to request information). Most breaches occur beyond our reach when criminals hack into data collected by companies, organizations or government agencies.

Finding out if you are the victim of a tax scam can be difficult. Be proactive. Check with your state tax department or the IRS to see if there are issues involving your records. Was your tax refund requested by someone else? Contact information: IRS — sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp or 800-829-1040; Vermont, myvtax.vermont.gov or 800-828-2865.

File a police report with local law enforcement, report the scam to the Federal Trade Commission at www.ftc.gov, the IRS, and if the crime involves state taxes, your state tax department. You can also preempt fraud. Register for online access to your tax records at the state and federal tax departments. That can freeze out criminals from creating a tax account in your name. File taxes electronically to expedite the process and don’t forget to register for direct deposit. Check tax accounts regularly to see if there is unusual, unexpected or unexplained activity.

Tax season is painful enough. Don’t let scammers increase the misery.

Elliott Greenblott is a retired educator and the Vermont coordinator of the AARP Fraud Watch Network. He produces a feature CATV program, “Mr. Scammer,” distributed by GNAT-TV in Sunderland, Vt. More information can be found at gnat-tv.org. Questions, concerns? Contact Elliott at [email protected].