Just as the tax filing season begins, the Utah State Tax Commission is warning Utahns about the latest tax scam. The commission is telling taxpayers to be defensive in dealing with those out to steal money, dat and identities.
“If a taxpayer receives a call saying their refund has been deposited into their account in error, they should immediately hang the phone up and contact their bank or credit union to take corrective measures,” said Charlie Roberts, spokesperson for the Utah State Tax Commission.
Taxpayers should then contact either the commission or IRS and report the incident.
Those who receive a direct deposit refund that they did not request are strongly encouraged to contact the automated clearinghouse department of their bank or credit union where the direct deposit was received and have them return the refund to the IRS or Utah State Tax Commission. If an incorrect refund is on a federal return, taxpayers should call the IRS at (800) 829-4933 to explain why the direct deposit is being returned. If the incorrect refund is from the Utah State Tax Commission, the report should be made at (801) 297-2200.
Although only discovered only recently in Utah, this tax scam technique is even more sophisticated than in past years. For several years, scammers have called taxpayers with threats of criminal action if they did not send money and give identity information. Cybercriminals now steal data from tax professionals’ computers and file fraudulent tax returns. In a new twist, they deposit the fraudulent refund into the taxpayers’ real bank accounts. They then contact taxpayers and tell them the refund was deposited into their account in error. They also ask probing questions to obtain identity and sensitive bank information, such as routing numbers.
“The fraudulent caller then gives the taxpayer instructions on how to return the deposit, into what is really the scammer’s account,” Roberts said. He emphasized that neither the state nor the Internal Revenue Service would ever phone taxpayers demanding identification information to correct such an error.