New Tax scam and how to Deal with it
by Rachel Li on Aug 7, 2018
If you weren’t expecting an income tax refund from the IRS in your bank account, don’t be quick to celebrate – You might be a target for a clever scam. Some of this fraud is coming and shows up from professional tax preparers who use details to file fake tax returns for refunds sometimes as large as $20,000. sent electronically with plans to collect it later. The IRS has been issuing warnings. Here are some answers to questions on how to deal with this.
Q: What if a tax refund is deposited in my account?
A: “If it seems too good to be true, it probably is.” Lemons said. Don’t forward or spend the money. If the refund arrived as direct deposit, contact your bank and have the funds returned to the IRS, customers may want their accounts closed. Call the IRS to explain why the money has been sent back, notify your tax preparer and file a complaint with the Federal Trade Commission.
Q: What questions about security procedures should I have for my tax preparer?
A: It’s important for Tax preparers to use encrypted email – standard mail is not secure enough and never used for sensitive financial information.
SF Chronicle Sunday Feb 25, 2018 Business section D2