By: Erin Harper
A Consumer Sentinel Network report found that the country’s fastest growing crime involves using Social Security numbers to steal tax refunds. The website GoBankingRates.com estimates that $5.2 billion in tax refunds has already been stolen this year.
IRS Commissioner Steven Miller has said that the agency has increased its efforts to pursue and prevent identity theft-related tax fraud. As part of an IRS crackdown, a nationwide campaign led to more than 700 enforcement actions in January. The IRS has also added additional computer screening filters in an effort to combat fraud and has assigned more than 3,000 employees to engage in identity theft-related work.
According to Steven Toporoff, a Federal Trade Commission attorney, tax refund theft occurs in various ways. In some instances, the thief uses the taxpayer’s name and Social Security number to steal the person’s refund. In others, the thief uses the taxpayer’s Social Security number but his own or a fake name. Typically, taxpayers discover that they are victims of refund fraud when they attempt to file electronically and receive a rejection notice. Unfortunately, each tax identity theft case takes approximately 180 days to resolve. The IRS, however, is working to reduce the time it takes to get refunds to taxpayers victimized by this crime.
http://www.cbsnews.com/8301-505144_162-57572789/tax-refund-theft-is-nations-fastest-growing-fraud/
http://www.usatoday.com/story/money/business/2013/02/07/irs-identity-theft-enforcement/1899059/