Last year the U.S. Treasury lost billions of dollars due to the filing of fraudulent tax returns by scam artists. But, due to security changes, made by the IRS to protect taxpayers, scammers have changed their target and are now going after state refunds. Refunds for millions of individuals are at stake. According to Intuit Inc. the company that makes TurboTax there has been a 3700 percent increase in the number of fake state returns filed this year by scammers. That increase prompted some states to temporarily suspend processing of returns.
“The scammers have upped their game.” says Dennis Horton, director of the Rockford Regional Office of the Better Business Bureau. “To guard against being victimized taxpayers should file early and also file both federal and state returns at the same time.”
According to a spokesperson for Intuit “The dramatic increase in the filing of unlinked state and federal returns was a red flag for the company and it now blocks users from filing unlinked returns using TurboTax.”
“It is tax season and those looking to rip-off taxpayers are working overtime. We see that here at the BBB because of the increased number of individuals who are calling to report IRS scam phone calls” noted Horton.
The scam phone calls have taken a twist as well. Along, with threats of arrest by U.S. Marshalls the scam artists are claiming lawsuits have been filed against consumers or that they are calling on behalf of a collection agency hired by the State.