Yuma taxpayers can take steps to protect themselves against identity theft and fraud, according to IRS officials.
http://liarcatchers.com/identity_theft_investigation.html
“There’s been a lot of fraud. People think they’re getting two, three, four thousand dollars (in a refund) and then they find out the tax preparer charged a hefty fee, sometimes thousands of dollars,” IRS spokesman Bill Brunson said.
He recently visited Yuma, along with Special Agent Brian Watson of the IRS Criminal Investigation Division, to offer tips on how taxpayers can protect themselves.
In some cases, taxpayers think preparers are charging a $20 fee, but later the fee jumps to $200 for e-filing.
Sometimes preparers will advance customers a loan in anticipation of a refund and then hit them with a high interest rate. Brunson advises taxpayers to be aware of all fees and encourages them to ask questions. Taxpayers should make sure to look at the refund amount.
“You’re signing (the agreements and returns) so you’re saying you know,” Brunson said.
People who use preparers should also make sure the preparer puts their information on the bottom of the tax return.
In addition, IRS reminds taxpayers that to file taxes electronically on a Married Filing Jointly tax return, both spouses must be present to sign the required forms.
Brunson also warned citizens to protect themselves against identity theft. “We want folks to know it’s out there. Identify theft happens.”
The IRS has been working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices in a nationwide effort against refund fraud and identity theft.
The coast-to-coast effort resulted in indictments, arrests and the execution of search warrants involving the potential theft of thousands of identifies and taxpayer refunds.
The agencies targeted 105 people in 23 states, including Arizona. In all, 939 criminal charges are included in the 69 indictments and information related to identity theft.
A former Buckeye, Ariz., resident was among those arrested on identity theft and tax fraud charges. Adrian Espiridion Lugo, 29, now living in Pittsburg, Pa., allegedly used stolen identities to file false tax returns.
He reportedly operated a tax preparation business and used stolen names and Social Security numbers of dead individuals to file false tax returns that fraudulently claimed refunds. The refunds allegedly were deposited into accounts that Lugo controlled. He reportedly claimed $279,000 in federal tax refund payments.
In another operation, IRS auditors and investigators conducted extensive visits to 150 money service businesses across the country, including Phoenix. The purpose was to ensure these check-cashing facilities aren’t facilitating refund fraud and identity theft.
“We are aggressively pursuing cases across the nation with the Justice Department, and people will be going to jail. This is part of a much wider effort underway at the IRS to help protect taxpayers,” IRS Commissioner Doug Shulman said in a press release.
“Now, more than ever, we must remain vigilant against the unauthorized use of identification information to defraud the U.S. government,” said John A. DiCicco, principal deputy assistant attorney general of the Tax Division.
“The Justice Department is working closely with the IRS to investigate, prosecute, and punish tax refund crimes committed through the theft of identities,” he added.
The national effort is part of a comprehensive identity theft strategy the IRS has embarked on that is focused on preventing, detecting and resolving identity theft cases as soon as possible.
In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.
The IRS is taking a number of additional steps this tax season to prevent identity theft and detect refund fraud before it occurs. These efforts include new identity theft screening filters designed to help the IRS spot false returns before they are processed.
To help taxpayers, the IRS earlier this month created a new, special section on IRS.gov dedicated to identity theft matters, including YouTube videos, tips for taxpayers and a special guide to assistance.
The information includes how to contact the IRS Identity Protection Specialized Unit and tips to protect against “phishing” schemes that can lead to identity theft.
Identity theft occurs when someone uses another’s personal information without their permission to commit fraud or other crimes using the victim’s name, Social Security number or other identifying information.
When it comes to federal taxes, taxpayers may not be aware they have become victims of identity theft until they receive a letter from the IRS stating more than one tax return was filed with their information or that IRS records show wages from an employer the taxpayer has not worked for in the past.
If a taxpayer receives a notice from the IRS indicating identity theft, they should follow the instructions in that notice. A taxpayer who believes they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account.
The taxpayer should contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.
Taxpayers looking for additional information can consult the Taxpayer Guide to Identity Theft or the IRS Identity Theft Protection page on the IRS website.
Brunson also encouraged qualified taxpayers to claim the Earned Income Tax Credit (EITC), one of the federal government’s largest benefit programs for working families and individuals.
“It doesn’t mean dollars in hand. The credit goes against the assessed tax, dollar for dollar. It might cause a refund, increase a refund or reduce tax liability,” Brunson explained.
But taxpayers must first file a tax return, even if they do not have a filing requirement, and specifically claim the credit to get the benefit.
The national average for the credit is $2200. In Arizona, the average is $2,300, but one in five didn’t claim it.
Although taxpayers will have a couple of extra days to file a federal tax return this year, the IRS urges taxpayers to file as soon as possible.
Taxpayers have until April 17 because the usual deadline, April 15, falls on a Sunday and April 16 is a holiday in Washington, D.C.
For more information, visit the Yuma IRS office at 2285 S. 4th Ave., or call 1-800-829-1040. Taxpayers may also visit IRS.gov for more information
