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July 16, 2021

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Understanding tax fraud charges: stolen identity refund fraud

Though tax season only officially lasts for a few months out of the year for Texas taxpayers and those across the country, tax obligations are in effect all year long. Additionally, the Internal Revenue Service is continually on the lookout for instances of potential tax fraud. As a result, even after tax season has officially ended, it is possible for someone to face an investigation for possible criminal activity regarding the filing of tax returns.

In particular, someone could face allegations of stolen identity refund fraud. As the name suggests, this crime involves someone stealing the identity of another person in an effort to receive a refund from the IRS. Often, this happens when someone manages to get ahold of someone else’s name and Social Security number and then file a return using that person’s personal information.

If a person is accused of this type of activity, the IRS may suspect that the individual used nefarious means to defraud the identity theft victim, which could include the following examples:

  • Pretending to be an IRS agent and calling individuals in an attempt to gain personal information, such as an SSN
  • Impersonating other tax-related or financial professionals, such as tax agents or bank employees
  • Hacking into information servers for banks, businesses, agencies, or other entities to gain personal information from customer or client records

If any Texas resident is facing accusations of tax fraud, taking steps to defend against the allegations as soon as possible may be in his or her interests. At the first sign of an investigation for fraudulent activity, a suspect may want to begin exploring his or her legal options in hopes of better understanding how the ordeal could be handled. Of course, anyone having to deal with a serious legal predicament may benefit from enlisting the help of attorneys experienced in the applicable area of law.

Tax Fraud