Author Topic: Turbo Tax halts e-filing state returns because of fraud  (Read 3075 times)

Eric

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Turbo Tax halts e-filing state returns because of fraud
« on: February 06, 2015, 11:53:33 AM »
Apparently scammers have been using pilfered info (not from turbo tax, but from other sources) to file fraudulent state tax returns through Turbo Tax and claim the refunds.  What a mess this is going to be.

http://www.forbes.com/sites/kellyphillipserb/2015/02/06/turbotax-temporarily-halts-e-filing-in-all-states-amid-fraud-concerns/


HopefulMustache

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #1 on: February 06, 2015, 12:16:37 PM »
Oof... it gets worse for TurboTax. Was already strongly considering H&R Block this year after the cost for filing via TurboTax increased for me. Glad it sounds like TurboTax itself was not affected from a security-perspective though.

firebeard

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #2 on: February 06, 2015, 12:48:52 PM »
Is there any way of figuring out if someone else illegally filed your return or not?  I'm not familiar with TurboTax since I do paper returns; could this happen with some other software that allows e-filing as well?

Jack

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #3 on: February 06, 2015, 01:19:48 PM »
Is there any way of figuring out if someone else illegally filed your return or not?  I'm not familiar with TurboTax since I do paper returns; could this happen with some other software that allows e-filing as well?

Yes: you'll try filing, and then get a letter in the mail from the IRS (or state entity) rejecting your return because you'd "already filed it."

Patrick A

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #4 on: February 06, 2015, 03:05:45 PM »
Do you think there's a chance that they will do my return and pay what I owe?  That would be sweet!

Eric

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #5 on: February 06, 2015, 03:15:43 PM »
Do you think there's a chance that they will do my return and pay what I owe?  That would be sweet!

Me too!  I was thinking, "well, that's one benefit of never getting a refund."

Patrick A

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #6 on: February 06, 2015, 03:18:01 PM »
Haha, so true. 

Spork

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #7 on: February 06, 2015, 03:43:52 PM »

Some of it comes from actual stolen credentials for the online turbotax that are being sold on the black market.  (TT online has a bit of a sordid history, which is why I've always stuck with desktop versions.)

http://krebsonsecurity.com/2015/02/citing-tax-fraud-spike-turbotax-suspends-state-e-filings/

AH013

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Re: Turbo Tax halts e-filing state returns because of fraud
« Reply #8 on: February 06, 2015, 06:31:39 PM »
Do you think there's a chance that they will do my return and pay what I owe?  That would be sweet!

Me too!  I was thinking, "well, that's one benefit of never getting a refund."

Unfortunately the IRS are about as smart as a rock.  It doesn't matter what your actual refund/liability status is.  A scammer will file a return saying you earned $150k and had $100k withheld, so the IRS will cut a check to "you" at their PO box for the "refund" due of like $50k, and then will audit it later and say "hey, wait a minute, you only earned x and paid y....you actually owe us some amount, so you owe us what you owed us plus the $50k we sent you plus interest and penalties" at which point scammer has already cashed the check at a check cashing store who swears it was you who walked in to cash it.