Important Tax Fraud Alert

Tax Fraud

Just days into the start of the 2018 filing season, the IRS identified a new scam in which cybercriminals have stolen client data from tax professionals and filed fraudulent refunds using real taxpayer information, including bank account and routing information for direct deposit.

The fraudster then contacts the taxpayer posing as an employee of a debt collection agency working on behalf of the IRS. They ask the taxpayer to take certain steps to return the refund, but actually, the refund goes to the criminals.

If you have been the victim of this tax fraud scam, please contact a Merchants Bank Customer Service Representative for assistance. The IRS also asks the taxpayers to call the IRS toll-free at (800) 829-1040 (individual) or (800) 829-4933 (business) to explain why the direct deposit is being returned.

There is more information for taxpayers at Tax Topic Number: 161 – Returning an Erroneous Refund

Information reposted at the request of the Federal Reserve Banks on behalf of the Department of the Treasury’s Bureau of the Fiscal Service.