IRS Tax Scam Deposits Refund Before You File In New Twist

The IRS is warning taxpayers and tax preparers of a quickly growing, tricky new scam the agency says involves erroneous tax refunds being deposited into bank accounts. The IRS said that after issuing an initial alert on Feb. 2, it found that more tax preparers' files had been breached and the number of potential victims had jumped from a few hundred to a several thousand over the course of just a few days.

According to the IRS, scammers stealing client data from tax preparers are filing fraudulent returns and depositing the refunds in the taxpayers' actual bank accounts before demanding a refund. The IRS says scammers are either posing as debt collection agents acting on behalf of the IRS or using automated calls.

Taxpayers receiving automated calls are threatened with criminal fraud charges, an arrest warrant and a "blacklisting" of their Social Security number, the IRS says. Taxpayers are also given a case number and a telephone number to call to return the refund.

The IRS is telling taxpayers who receive erroneous refunds to contact their tax preparers immediately and follow procedures laid out by the agency to return the refunds. The IRS also called on tax preparers to to step up their security.

Another consequence of the scam is that taxpayers filing electronically may have their tax return rejected because a return bearing their Social Security number is already on file. The IRS is directing taxpayers to their guide on identity theft if that happens.

The IRS is investigating the scam.

• You can find information from the IRS on how to return erroneous refunds here.

Photo by Brennan Linsley/Associated Press