Fraud and scams are on the rise. During tax season, one way that criminals commit fraud is by filing a bogus tax return.
With this scheme, the criminal impersonates the victim and files a bogus tax return—which results in a substantial refund — using the victim’s Social Security number. Once the IRS deposits the refund in the victim’s account, the criminal cons the taxpayer into turning the funds over to them. Often, the criminal calls the victim and says that they are an IRS representative. The victim is then threatened with criminal charges if they do not send the bogus tax refund back to the caller.
Taxpayers typically fall prey to this scam because there is actually a bogus refund in their account, which makes the scammer’s claim seem more believable. However, it’s important to know that the IRS will not contact you by phone or email to discuss your account.
If you fall victim to this type of scam, contact your financial institution and your tax preparers immediately to inform them of what happened and discuss the steps you should take next.
How to Protect Yourself
The best way to protect yourself from tax refund fraud is to file your taxes as early as possible. You can only file one tax return per Social Security number, so the IRS will reject any tax returns that are filed later.
If you find it difficult to file your tax return early, here are some other ways to protect yourself:
Keep your Social Security number private.
Use strong passwords for all financial websites.
Protect your computer against spam and viruses.
Keep your financial information private.
Beware of phishing and related scams.
Shred printed bank and tax documents when you no longer need them.
Visit our Fraud Protection Center for more tips.
Returning a Bogus Tax Refund
Finally, make sure you return the bogus tax refund to the IRS using the following instructions.
1. If the refund was a direct deposit:
Contact the Automated Clearing House (ACH) department of the financial institution where the direct deposit was received, and have them return the refund to the IRS.
Call the IRS toll-free at 800-829-1040 (for individual taxes) or 800-829-4933 (for business taxes) to explain why the direct deposit is being returned.
2. If the refund was a paper check and it hasn't been cashed:
Write “Void” in the endorsement section on the back of the check.
Immediately send the check to the appropriate IRS address listed below. Don’t staple, bend or paperclip the check.
Include a note saying that you are returning an erroneous refund check.
3. If the refund was a paper check and you have cashed it:
Send a check or money order immediately to the appropriate IRS address listed below.
If you no longer have a copy of the refund check, call the IRS toll-free at 800-829-1040 (for individual taxes) or 800-829-4933 (for business taxes). Explain to the IRS representative that you need to repay a cashed refund check.
Write “Payment of Erroneous Refund” on the check or money order. Include the tax period for which the refund was issued, as well as your taxpayer identification number (SSN, EIN or ITIN).
Include a brief explanation of the reason for returning the refund.
Act quickly, because receiving an erroneous refund could result in you owing interest to the IRS.
IRS Mailing Addresses
Here are the IRS mailing addresses for returning an erroneous refund check. Use the address for the city on the bottom text line in front of the words “TAX REFUND” on your refund check. Keep in mind that the city name on the check might be abbreviated.
ANDOVER: Internal Revenue Service, 310 Lowell Street, Andover MA 01810
ATLANTA: Internal Revenue Service, 4800 Buford Highway, Chamblee GA 30341
AUSTIN: Internal Revenue Service, 3651 South Interregional Highway 35, Austin TX 78741
BRKHAVN: Internal Revenue Service, 5000 Corporate Ct., Holtsville NY 11742
CNCNATI: Internal Revenue Service, 201 West Rivercenter Blvd., Covington KY 41011
FRESNO: Internal Revenue Service, 5045 East Butler Avenue, Fresno CA 93727
KANS CY: Internal Revenue Service, 333 W. Pershing Road, Kansas City MO 64108
MEMPHIS: Internal Revenue Service, 5333 Getwell Road, Memphis TN 38118
OGDEN: Internal Revenue Service, 1973 Rulon White Blvd., Ogden UT 84201
PHILA: Internal Revenue Service, 2970 Market St., Philadelphia PA 19104
Call Us If You Need Help
If you have any questions, need assistance or see any suspicious activity on your account, our representatives are more than happy to help. Call our Contact Center at 904-777-6000 or 800-445-6289, Monday through Saturday, from 7:00 a.m. to 7:00 p.m., excluding holidays.