Office of the Circuit Attorney

W-2s have arrived so it's time to prepare your federal, state and local income tax returns.  But imagine you're this St. Louis resident:  she filed her return by mail just before the April deadline.  When she did not receive her refund check by July, she called the Internal Revenue Service (IRS).  The IRS informed her that they had already paid the refund on her March return, which was e-filed.  An obvious error had occurred.  After several more calls and a visit to the IRS' downtown office, this citizen was informed that someone had stolen her identity and e-filed a return in her name.  The IRS opened an investigation and issued her a refund check.  Citing privacy laws, the IRS did not tell the victim any additional information.  She then had to take further time-consuming and painstaking steps to recovery her identity; not knowing how, when, or how someone had stolen it.  The "why" was clear:  defrauding the United States government of money -- your money.

Unfortunately, this St. Louisan is not alone.  Last May, the Wall Street Journal reported that, "Since 2008 the IRS has identified about 470,000 incidents of identity theft affecting more than 390,000 taxpayers." (1) The article also said there were 52,000 cases in 2008, rising to 245,000 in 2010.

The fraud works several ways, with e-filing being the common denominator.  E-filing negates the need to send W-2s as proof of wages and taxes withheld.  One typical method involves stealing a living or dead person's identity, including their social security number (SSN), and e-filing a return that involves a small refund.  Usually, the con artist chooses a refund of less than $3,000 in order to stay under the IRS' "radar."  Tax protocols actually aid the scam because employers are not required to send W-2 information directly to the IRS.  Instead, the information is sent to the Social Security Administration by march 31, after more people due refunds have filed their returns.  The Social Security Administration can take months to relay the W-2 data to the IRS.  The con artist's goal is to e-file the phony return before the real taxpayer.

How can you avoid being the victim of this fraud?  Truthfully, your identity can be stolen in countless ways.  You can take all the recommended preventative steps and still be victimized.  Nonetheless, it is better to be safe than sorry.  One way to prevent victimization is to file first in order to get your return into the system before any criminal  This method is subject to change.  What about those taxpayers who owe taxes and wait to file?  They might have to cross their fingers and hope to not be the next victim.  You can track your federal return by logging onto the IRS' website, www.irs.gov, and typing "Where's my return" into the search bar.  This will afford you some knowledge that no one else filed a return in your name.  The IRS also allows you to e-file your return for free through their website if your adjusted gross income is $57,000 or less.

The St. Louis Public Library offers free tax help at these seven branches:  Baden, Barr, Carpenter, Julia Davis, Kingshighway and Schlafly.  Call the branch nearest you for the times.  An appointment may be necessary.

Source:  1. http://blogs/wsj.com/washwire/2011/5/25/identity-theft-involving-irs-mushrooms

 

If you think you have been the victim of a fraud, call the Fraud Assistance Hotline at (314) 612-1412.

 

Circuit Attorney's Office

City of St. Louis