Scammers Now Misuse TurboTax to Target State Returns

CHICAGO, IL – 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 3,700 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 Steve J. Bernas president, and CEO of the Better Business Bureau serving Chicago and Northern Illinois. “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 Bernas.

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.

If your state return has been compromised contact your State Revenue Department:

• In Illinois call 1 800 243-2811 (CHEAT 11) or write to      Illinois Department of Revenue
  Bureau of Criminal Investigation
  101 West Jefferson Street
  PO Box 19014
  Springfield, Illinois 62794-9014

If you are a TurboTax customer and find a problem with your return call:

• TurboTax Customer Service at 800-944-8596.

If you receive a scam phone call the BBB recommends:

• Hang up – Don’t provide any information over the phone. Call the IRS directly using the phone number found on their website or in the phone book.
• Protect personal information – In response to an incoming call, never give out any personal or financial information such as your Social Security number, mother’s maiden name or any passwords and other identifying information.
• Contact the FCC – Let the Federal Communications Commission know about ID spoofers by calling 1-888-CALL-FCC or file a complaint at www.fcc.gov/complaints
• Contact the FTC – File a formal complaint with the Federal Trade Commission at www.ftc.gov/complaint. From the complaint homepage, select “Other” and then “Imposter Scams”. In the notes, include “IRS Telephone Scam”.

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