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SALT LAKE CITY — The IRS estimates billions of dollars in tax refunds are going to identity thieves instead of legitimate taxpayers each year.
For several years, KSL Newsradio’s Amanda Dickson has reported on the rising tide of identity theft plaguing the IRS. Now, the story has become very personal for her after someone stole her social security number and received her tax return.
“I, in my mind, had already spent that money,” she said. “I was counting on that money coming in that short period of time.”
Now, the return Dickson expected to see in 10 days could take months. And she'll have to file the old-fashioned way, by paper, not electronically.
However, first she must prove she is the real Amanda Dickson.
“Because I am the second one, I now have to prove I am me and I am entitled to my refund," Dickson said. "As far as they’re concerned, I’ve already filed.”
Virginia Keyes, a special agent for the IRS criminal investigation division, said, “Once that first return comes into the IRS, anything after that, that may be used with the same social security number is going to be stopped because it doesn’t make sense to the system.”
She said combating refund fraud caused by identity theft is one of the biggest challenges the IRS faces.
Last year, the IRS initiated 1,492 identity theft investigations. That’s up 66 percent from 2012, and up more than 400 percent from 2011. Keyes said the IRS has trained more than 35,000 employees to help taxpayers who've been hit by identity thieves. The agency has also set up a specialized identity protection unit.
“They’ll be able to help taxpayers through that process, including what forms need to be filed and what information the taxpayer needs to provide to prove who they are,” Keyes explained.
And as far as recouping the money taken by the bogus Amanda Dickson?
“We’ll trace that money and find it, go after them criminally, prosecuting them. Hopefully, not only will they see prison time, but we’ll be able to recoup that money and put it back into coffers,” Keyes said.
The real Amanda Dickson said one big lesson she learned: Don't bank on any tax refund until it's in your hands.
“I’m never going to spend money, not even in my brain, until it’s in my bank account,” she said.
Keyes said the earlier you files your tax return, the less likely tax thieves will get the jump on you. And she reminds everyone, if they get a call or an email from someone from the IRS saying there's a problem with their return, it's very likely a scam.
The IRS does not initiate contact through phone calls or email. It uses the U.S. mail.
