IRS WARNS OF IDENTITY, FINANCIAL DATA THEFT SCHEME
The Internal Revenue Service recently warned of a fraudulent scheme that uses fictitious bank correspondence and IRS forms in an attempt to trick taxpayers into disclosing their personal and banking data.
The information fraudulently obtained is then used to steal the taxpayer's identity and bank account deposits.
Officials reported that the IRS has received reports of the scam surfacing from coast-to-coast, including Maine, New York, Georgia, North Carolina, Texas, California and the state of Washington. Dozens of U.S. and foreign victims have been identified so far.
In this scam, a letter claiming to be from the taxpayer's bank states that the "bank" is updating its records in order to exempt the taxpayer from reporting interest or having tax withheld on interest paid on his or her bank accounts or other financial dealings.
The "bank" correspondence encloses a phony form that purports to come from the IRS and seeks detailed personal and financial data. The letter urges the recipient to fax the completed form to a specific number within seven days or lose the reporting and withholding exemption, resulting in withholding of 31 percent on the account's interest. The scheme promoters then use the faxed information to impersonate the taxpayer and gain access to the taxpayer's finances.
The Treasury Inspector General for Tax Administration investigates a wide variety of offenses, including the misuse of IRS insignia, seals and
symbols and identity theft related to tax administration. Taxpayers who have received a fraudulent letter and form should report this to TIGTA by calling the toll-free fraud referral hotline at (800) 366-4484, faxing a complaint to (202) 927-7018 or writing to the TIGTA Hotline, P.O. Box 589, Ben Franklin Station, Washington, D.C. 20044-0589. TIGTA's Web site is located at
www.ustreas.gov/tigta.
Source: Afterburner - a military newsletter.