It’s been a rough year for the Internal Revenue Service, what with thieves stealing information for roughly 100,000 taxpayers and a slew of fraudulent refunds filed with TurboTax that had the FBI and various states scrambling to investigate. Now the IRS says it’s working with state agencies and tax-preparation firms to combat stolen-identity refund fraud.
If you have only one job and take the standard deduction, filing your taxes can be pretty simple. It’s so simple, in fact, that fraudsters are happy to do it for you, stealing your refund in the process. What happens to taxpayers who get stuck in this situation? Tax fraud is complicated, and sometimes they end up waiting for a very long time to get their money back. [More]
For many low-income consumers, tax time provides an opportunity to catch up on bills and get back on track financially. Unfortunately, there are unscrupulous companies out there that aim to make money of these same consumers by pointing them in the direction of high-cost tax-refund-anticipation loans. That appears to be the case for the owner of New Mexico-based H&R Block franchises and a tax-time loan company operating an alleged illegal tax-refund scheme. [More]
We believe in unicorns and ghosts, but someone voluntarily letting a city keep her tax refund? Yes, such a person really exists, but somehow her act of goodwill toward the city of Detroit has been turned into an ordeal of vastly annoying proportions. The city now claims that she actually owes it $5,300. Good thing she’s kept up on her personal paperwork. [More]
It has to feel completely awful to get a letter from the government saying it’s holding onto your refund check. But even worse, as one couple found out, is the feeling of that happening twice. And then there’s this doozy: Tax officials claim the refunds were put on hold because the state of Mississippi twice has said the husband owed back child support payments. Problem is, the couple has never lived in Mississippi and the man hasn’t father a child there either. Not once, and definitely not twice.
Coming into accidental money can be a heady thing — but while some of you might get a little nutty and go out and spend that “free” cash, we know others would return it. A Cleveland waitress spent her mistaken money only in her daydreams, musing about what she’d do with $434,712 from the Internal Revenue Service.