WASHINGTON – Last year in the Hudson Valley alone, 8,336 people were victims of tax refund fraud and US Senator Charles Schumer Wednesday announced legislation to speed up the process for persons to recover stolen returns.
Schumer said hackers and fraudsters only need pieces of a taxpayer’s personal information, such as their Social Security Number, to submit a fake tax return and unlawfully claim a refund.
“The increasing popularity of online tax preparers while bringing much convenience, and they are good for that, has also opened up the door even wider to identity thieves, who can fraudulently submit tax returns in your name and steal your rebate,” Schumer said. “The IRS calls this tax refund fraud.”
This new legislation would create a single point of contact for a fraud victim at the IRS and would require the IRS to issue an individual’s stolen refund within an average of 90 days after a taxpayer has reported the crime. Now it can take an average of 300 days.
Schumer said the legislation would also help crack down on future fraud by requiring the Treasury Department to issue policies to ensure that paid tax preparers institute identity verification that isn’t just a client’s Social Security number. It would also increase the penalties on tax refund fraud and require that tax account numbers on pre-paid debit cards be distinguishable from a regular bank account.
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