Watch out for fraud, ID theft this tax-filing season

Tax filing season has begun, and the Oregon Department of Revenue on Monday reminded taxpayers to file early, file electronically and immediately report suspected identity theft — a rising problem.

Oregon other states, and the IRS have seen significant increases in the filing of fraudulent tax returns, often using stolen identities and fictitious W-2s as a way to try and claim refunds.

“We know tax fraud is on the rise,” explained Kris Kautz, the department’s interim director. “Our goal is to avoid paying on fraudulent claims to protect Oregon’s tax dollars from misappropriation and protect our taxpayers from fraud.”

How big is the problem?
* In 2014, we saw 4,700 fake returns trying to claim a total of nearly $8 million in refunds.
* We stopped all but 159 of those fake refunds from being issued, preventing nearly $7.8 million from getting into the hands of fraudsters.
* Through mid-November 2015, we saw nearly 4,000 fake returns, claiming more than $7 million in refunds.
What is Revenue doing?
* We’re providing easier reporting options through our website and dedicated identity theft phone line. To report potentially fraudulent activities or to flag your account for possible fraud, go to our website at www.oregon.gov/dor and click on “Report Fraud or Identity Theft” under “Get Help” at the bottom of the homepage. You can also call (503) 947-2000.
* Our online services use two-factor authentication and require taxpayers to validate specific tax information before they can access their Revenue Online accounts.
* We’re following up on suspicious returns. If we think someone is using your personal information to file a fraudulent return, we’ll send you a letter asking you to verify your identity. You can verify you identity by mail, by phone, or by taking our new online identity verification quiz.
* The Legislature funded our plan to incorporate commercial data analytics and real-time withholding matching to help us catch more fraudulent tax activity.
* We’re participating in the IRS Security Summit with other states, the tax industry, and the IRS to identify additional safeguards to protect taxpayers’ federal and state tax accounts from identity thieves.
“These added security measures may add a bit more time to your filing but it’s to protect you as an individual and our state’s funds,” Kautz said.

How can you protect yourself?
* E-file as early as you can. If we get your real return first, we can better stop fraudsters from using your information.
* If you think or know your identity was stolen, notify us immediately using the reporting feature on our website. You can also call (503) 947-2000. We can flag your account and watch for potentially fraudulent returns and help you get your real return processed correctly. You should also flag your account with the IRS by calling 1 (800) 908-4490.
* For more information on protecting yourself or what to do if you’re a victim of identity theft, visit:
o https://www.irs.gov
o http://www.consumer.ftc.gov
o https://www.identitytheft.gov

Visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; or call 1 (800) 356-4222 toll-free from an Oregon prefix (English or Spanish); (503) 378-4988 in Salem and outside Oregon; or email, questions.dor@oregon.gov. For TTY (hearing or speech impaired), call 1 (800) 886-7204.