The Delaware Division of Revenue would like to alert taxpayers to a new and growing scam involving fraudulent tax refunds being deposited into real taxpayer bank accounts. After the money is deposited, the crooks use various tactics to con taxpayers into turning over those funds.

How does it work? Thieves are using schemes, including phishing, to steal client data from tax professionals. They then use that data to file fraudulent tax returns, and use the taxpayers’ real bank accounts to deposit those tax refunds. Finally, the thieves pose as the IRS or other law enforcement representatives, call attention to the error, and ask taxpayers to return the money to them.

If you ever receive a refund that you are not expecting, call the Division of Revenue for more information. You can also check out the Taxpayer Guide to Identity Theft at IRS.gov to learn how to protect yourself from tax scams, where you can also find help with returning an erroneous refund.

The IRS warns that versions of this new scam may continue to evolve. If you think you’re being scammed, call the Delaware Division of Revenue’s Fraud Team at (302) 856-5358 for assistance.

The Division of Revenue wants to provide Delawareans with information about one of the most common and costly forms of identity theft – tax return fraud. Tax return fraud occurs when someone uses your Social Security number to file a tax return, and claims a fraudulent refund.

It’s important that citizens be aware of the steps they can take if they suspect or have been informed that they have been a victim of tax-related identity theft.

“As criminals continue to develop increasingly sophisticated ways to steal your personal information, our goal is to identify and apply safeguards that will better protect taxpayers and fight identity theft,” said Division of Revenue Director, David Gregor. “Identity theft places a burden on its victims, and presents special challenges for businesses, organizations and government agencies.”

The Division of Revenue has provided a new web resource that can help citizens who believe they may have been a victim of a tax-related identity theft.

The Warning Signs of Identity Theft

• You receive correspondence requesting tax return information for a return that you have not filed yet.
• You are notified that a return has already been filed using your name or social security number.
• You receive a balance due or refund offset notice for a tax year in which have not yet filed a tax return.

To learn more, visit the Identity Theft and Victim Assistance page at revenue.delaware.gov.