New Scam: Theives Filing Bogus Tax Returns (how much, money, claim)

[goldengrain]

http://www.nytimes.com/2012/05/27/us...pagewanted=all

Crooks are collecting tax returns, filing before the rightful owners are. The collect SS numbers from stolen files from doctors offices, employees of department stores, and other places. They collect the returns on debit cards.

There is no advice on how to protect yourself. Should we not, then, get store credit cards?

They are even using SS numbers of prisoners. Doesn't the IRS get income records of prisoners? How much money could they make?

Maybe we should all manipulate our tax situation in order to get the smallest possible refund and file early?

This started in Florida, but is being done all over the country by now. The article says that it is so prevalent that random searches and traffic stops are finding lists of SS numbers, debit cards, etc.

[d4g4m]

This scam has been going on for decades. It's only now a news story because it's being done by so many more people. Scams and theft is a reason that SS checks will be required to have direct deposit in January 2013 Next will be no more tax return checks to a UPS store mail box.
A reason that new borns need a SS# is because if the parents were divorced, both were claiming the kids as dependents or claiming dependents that didn't exist.

[LauraC]

Originally Posted by goldengrain

http://www.nytimes.com/2012/05/27/us...pagewanted=all

Crooks are collecting tax returns, filing before the rightful owners are. The collect SS numbers from stolen files from doctors offices, employees of department stores, and other places. They collect the returns on debit cards.

There is no advice on how to protect yourself. Should we not, then, get store credit cards?

They are even using SS numbers of prisoners. Doesn't the IRS get income records of prisoners? How much money could they make?

Maybe we should all manipulate our tax situation in order to get the smallest possible refund and file early?

This started in Florida, but is being done all over the country by now. The article says that it is so prevalent that random searches and traffic stops are finding lists of SS numbers, debit cards, etc.

Bogus income tax returns have been filed for years. One of the more common ones is making up a business that doesn't exist and filing a Schedule C as a self employed person just so you can claim the earned income tax credit. Since you can't be on welfare and get the earned income tax credit, criminals buy child social security numbers from welfare mothers, file tax returns and claim the earned income tax credit (you don't have to be a parent to claim the kid) as the kid's guardian (kid supposedly lives with them).

[HappyTexan]

Originally Posted by d4g4m

This scam has been going on for decades. It's only now a news story because it's being done by so many more people. Scams and theft is a reason that SS checks will be required to have direct deposit in January 2013 Next will be no more tax return checks to a UPS store mail box.
A reason that new borns need a SS# is because if the parents were divorced, both were claiming the kids as dependents or claiming dependents that didn't exist.

The prepaid debit card is what is driving the increase.
Easy money right in your hands. USPS and mailboxes are getting robbed over these cards.