Lawmakers look to curb rising tax fraud

HARTFORD, Conn. (WTNH) — New data on cyber tax crime in Connecticut is out with Tax Day looming. State lawmakers are trying to do something about the large numbers.

Crooks stealing Social Security numbers and using them to file bogus tax returns is a problem that is growing quickly in the state and country. The state’s Department of Revenue Services says its busy with a spike in tax fraud.

Last year, the department intercepted $7 million in fraudulent returns. This year, that number is between $12 million and $18 million.

Tax fraud occurs when someone files under your name with your Social Security number, and they get the refund check. Oftentimes, people only find out they’ve been victimized when they try to do their taxes.

The Department of Revenue Services Commissioner Kevin Sullivan says he met with lawmakers across the country to try to put in more standards for companies like TurboTax and TaxACT in an attempt to prevent the fraud.

“That would include what kinds of standards these entities have, these businesses have for verification, encryption, confirmation, investigation, all of that, and there is no standard,” said Sullivan.

They’re trying to get some legislation formed by June, and would like to see it in place by next tax season to try to prevent more fraud.

If you think someone filed a fake tax return using your identity, click here.

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