Brookfield Residents Victims of Tax Fraud

At least two Brookfield residents have reported stolen tax returns this month, due to unknown suspects filing for their returns using their names and Social Security numbers.

The criminals are among thousands across the country who are taking advantage of quick online forms and the option to issue refunds straight to debit cards, to nab tax refunds on inflated incomes of strangers, friends and family.

A Brookfield man reported April 2 that someone else had electronically filed for his federal and state tax refunds, using his name and Social Security number. The suspect received a refund of about $1,000 before the victim filed jointly with his wife and had the return frozen because of the fraud.

In a similar situation, a Brookfield man told police Wednesday that he received a letter saying they were holding his tax return until they could verify the information he had reported. Explaining that he had never filed for a tax return and did not have any money coming back, they discovered someone else had used his name and social security number to file for his tax return. The IRS is continuing their investigation in that case.

Last year, the IRS reported at least 582,000 victims of identity theft, and $6.5 billion in fraudulent returns by identitify theft that were not actually issued, CNN reported. 

The criminals have a myriad of ways to get ahold of names and social security numbers. In March, two Milwaukee women were convicted for filing more than 170 fraudulent returns with identities they stole from friends, relatives, and others, the Journal Sentinel reported.

Some criminals do it by phishing - sending emails and websites that ask for personal information, posing as the IRS or other institutions.

Victims of tax fraud often don't find out about it until they file for their own refund or the IRS follows up on an inconsistency in the tax form. The IRS lists the following as warning signs:

• More than one tax return for you was file.
• You have a balance due, refund offset or have had collection actions taken against you for a year you did not file a tax return.
• IRS records indicate you received wages from an employer unknown to you.

The IRS urges anyone who thinks they could be at risk for identity theft, due to a lost wallet or other circumstance, to contact the IRS Identity Protection Specialized Unit at 1-800-908-4490.