Finance & Enjoyment Blog

There has been a lot in the news recently regarding, in particular, state filings with TurboTax and related fraudulent claims. In fact, last week some states went so far as to suspend electronic filings for a few days.

What Is Happening

In the past several weeks, people have filed their taxes only to find that a tax claim under their social security number has already been filed.

How is This Happening

This is not a TurboTax issue as their software was not breached. It just so happened that many of the fraudulent tax returns were created using their software.

Instead, this looks to be criminals using stolen data from other security breaches at places such as Target, Home Depot, Anthem and more to file fraudulent tax returns using stolen social security numbers.They then have the fraudulent tax refunds credited to a prepaid debit card and have those refunds wired to those cards.

How to Minimize Your Risk

This happened early in the tax filing season as the criminals wanted to get fraudulent returns lifed before true taxpayers’ returns were filed. Filing early is one way to reduce your risk. You can also go to the IRS website and use their “Check My Refund” section to see if anything has been filed for you.

If you find that something has already been filed, report it immediately to the IRS. The IRS will send a PIN to you and it will have to be used for any tax filing for your 1040 going forward. This will help prevent future fraudulent tax returns.

While this is currently what the IRS has in place, states are asking more questions when returns are filed. In some cases, they are asking for a street address or other identifying data from a previous years’ tax return before accepting a filing. While a hassle, these additional steps will help minimize risk.

Colorado State Refunds - Update

Colorado may be issuing paper check refunds and mailing them versus direct deposit. So, if you have not received your refund yet, it could be in the mail. See this story from 9News for more information.

How to Use this Information

At KKB, we want to help ensure you are safe from these sorts of scams. If you have any questions, please give us a call at 303-815-1100 or contact us online. It would be our pleasure to answer any questions you may have.

Posted in Your Financial House »

0 Responses to "Special Announcement: 2015 Tax Fraud Warning"

Leave a Reply

Fields marked with  * are required.

Name *
Email Address *
(will not be published)