Saturday, February 7, 2015

Slow Saturday Special: Hackers Put Hold on Tax Refunds

Seeing as the two largest hacking organizations are the Jewish mafia and the U.S. government itself, they must want to hold onto your money just a bit longer:

"Mass. suspends refunds over fraud, ID theft" by Deirdre Fernandes, Globe Staff  February 06, 2015

Massachusetts and Vermont state officials said Friday that they temporarily halted most tax refunds following widespread reports of identity theft and fraud tied to the country’s most popular tax preparation software, TurboTax.

So who programmed in the trap door?

The Massachusetts Department of Revenue said it is holding about 160,000 tax returns claiming refunds, which will undergo further scrutiny to ensure that the money is going to taxpayers rather than thieves who steal personal information to file false returns. In Vermont, more than 8,600 returns have been stopped in the pipeline. 

That sure leaves one feeling melancholy.

The suspension of refund payments affects both paper and electronic returns. Tax officials in both states said they hope to send the refund checks out sometime next week.

“We want to minimize the impact to taxpayers,” Massachusetts Revenue Commissioner Amy Pitter said. “But it is essential that we take the necessary precautions to protect taxpayers and reduce the cost of fraud for the Commonwealth.”

Well, that would be a first.

The drastic step by Massachusetts and Vermont came as TurboTax, made by the California software firm Intuit, temporarily stopped processing state tax returns across the country Thursday. At least 18 states have reported a rise in fraudulent returns connected to TurboTax, primarily used by do-it-yourself filers. About 30 million state returns are filed through TurboTax each year.

TurboTax resumed its processing of state electronic filings Friday night after increasing the security of its system and putting in place multiple levels of authentication to identify users.

Julie Miller, a spokeswoman for Intuit, said most victims learned a fraudulent return was submitted in their name when they received a rejection notice after filing their tax forms. She said similar problems have not occurred with federal returns because the IRS has implemented stronger fraud detection policies.

Have they?

Intuit, which is working with the global security company Palantir, said it does not believe its systems were hacked to obtain Social Security numbers, names, addresses, and other personal data.

Cui bono?

Related: CIA Has Venture Capital Wing 

And they were hacked?

Starting to $ee things my way, readers?

Miller linked the problem to recent security breaches at large companies, such as the financial services company JPMorgan Chase and retailers Home Depot and Target.

Amazing how none of those stick, and you are still encouraged to go shop and pay by phone, blah, blah.

This week, Anthem Inc. said hackers gained access to the Social Security numbers, names, addresses, and other personal information of about 80 million people. ‘‘You have a pretty rich pool of data out there in the world,’’ said Miller.

Related: "After a huge hack, Anthem is warning about ‘‘phishing’’ scam e-mails that are targeting people it insures or has insured in the past. The company this week said hackers accessed records of about 80 million people, including their names, Social Security numbers, and e-mail addresses. Anthem Inc. said Friday that the scam e-mails did not come from Anthem, but are meant to look like they do. The e-mails instruct individuals to click on a link for credit monitoring services. Anthem, which is the country’s second-biggest insurer, told individuals that they should not click on any links in suspicious e-mails as well as to not open attachments or reply to the e-mails." 

Do you wonder who may be looking at your file?

Alison Foley, 32, of Boston, who used TurboTax to file her returns, said she always thought her tax and health information were among the most secure data in an environment where large cyber breaches increasingly occur. But last week, Foley, who has Anthem insurance, was notified about that company’s data breach. 

Young fool.

Foley filed her state tax return Monday and expects her refund will be delayed.

“Up until now, I never really gave it any thought,” she said. “Now, I’m a little nervous.”

Tax fraud, using stolen Social Security numbers and taxpayer identities, is common. The Inspector General for Tax Administration reported last year that the Internal Revenue Service caught 236,313 fraudulent tax returns through the end of April. Last year, Massachusetts stopped $25 million in fraud.

Maybe you would like to file mine and pay them for me?

But the volume of suspicious filings so early in the tax season caused many state revenue commissioners to raise alarms this week, eventually leading TurboTax to temporarily stop transmitting state filings.

Dave Karp, a vice president at Digital Guardian, a Waltham cybersecurity firm, said there is no easy solution to the problem. “It’s pretty hard to say what the definitive answer is, to keep this from happening,” Karp said.

I gue$$ it's all in protective $oftware, 'eh?

Karp suggested that the best defense is to file tax returns early, before an identity thief can do it. “This is a race,” said Karp. “The first one to the end wins.”

Yeah, except that is what raised alarms.

In Vermont, Tax Commissioner Mary Peterson said state officials are adding extra layers of screening to identify fraud, so legitimate filings may get greater scrutiny, slowing the process of sending refunds.

In Massachusetts, if officials suspect a fraudulent return, they will require taxpayers to provide additional information to verify their identities before refunds are sent.

“It’s a balance of how quickly we can get the refunds out versus stopping fraudulent returns,” Peterson said. Delays, “are going to be an unfortunate outcome here.”

--more--"

Speaking of balance:

"The head of the IRS says budget cuts could force a two-day shutdown later this year. In an e-mail to workers, Commissioner John Koskinen said the IRS will reduce services and conduct fewer audits. He previously said some refunds may be delayed. The agency’s $10.9 billion budget is the smallest since 2008. Koskinen said the agency will extend a partial hiring freeze through the end of the budget year, but said that having fewer enforcement agents will cost the government at least $2 billion in lost tax revenue."

This when they are needed more than ever for Obummercare. 

"The IRS is cutting taxpayer services to historically low levels just as President Obama’s health law makes filing a federal tax return more complicated for millions of families. Have a question for IRS? Good luck reaching someone by phone. The agency says only half of the 100 million people who are expected to call this year will be able to reach a person. Callers may have to wait on hold for 30 minutes or more, and only the simplest questions are likely to be addressed. ‘‘As we enter 2015, we are deeply concerned that taxpayers are receiving markedly less assistance from the IRS now than at any time in recent history,’’ said a report released Wednesday by the agency’s watchdog, Nina E. Olson." 

Who is this government really $erving, folks?

"As tax forms go out across the country, a $346 million budget cut at the IRS means taxpayers calling for help with their taxes are facing long hold times. People who file paper returns could have to wait seven weeks or even longer before seeing a refund, the agency said, compared with the usual four to six weeks, but electronic filers should still receive their refunds within three weeks if they choose to receive the refund through a direct deposit to their bank accounts. Federal tax returns are due April 15. Staffing cuts also mean the agency will conduct 46,000 fewer audits than last year, although IRS Commissioner John Koskinen said the agency still plans to audit more than 1 million filers."

Thanks for the warning:

"IRS warns of possible delays this tax season" by Megan Woolhouse, Globe Staff  January 16, 2015

The head of the Internal Revenue Service kicked off the start of tax season Thursday with some startling warnings to filers: clogged help lines, delayed refunds, and unaudited returns.

IRS Commissioner John Koskinen said $346 million in federal budget cuts this year — the fifth straight year of reduced funding from Congress — continue to hamper the struggling agency, even as it enacts one of the biggest and most complex tax code changes in decades related to the Affordable Care Act.

“For the agency to be ready is even more of an accomplishment in the budget environment we’re in now,” Koskinen said at a news conference in Washington, D.C.

As with last year, the IRS expects to issue more than nine out of 10 refunds within 21 days, and the fastest way to get a refund is by filing returns electronically and depositing refunds by direct deposit.

Never you worry about the hackers.

Paper returns take longer to process and IRS officials encouraged people to file returns electronically at their own expense. Taxpayers earning less than $60,000 a year may file for free online through the IRS FreeFile program, which goes live Friday.

I hope it is ready to roll out better than Healthcare.gov.

The IRS will begin accepting all other returns on Tuesday.

The new federal health care law adds another layer of work for an agency already struggling. This is the first year the IRS receives forms from millions of Americans getting their medical coverage through the new government health exchanges. The agency must verify these taxpayers are enrolled and due the tax credit allowed under federal law....

The process is going to make you $ick.

--more--"

Oh, BOO-HOO-HOO for the IRS!

Related
:

IRS negligent in collecting unpaid taxes, US report indicates

Must be the wealthy elite there.

IRS paid $6 billion in bogus child tax credits

You rabble $cum!

Lowell chiropractor pleads guilty to bribing IRS auditor

US seeks $2.7 million in taxes, late fees from Boston attorney

Kidnapping, IRS telephone scams surging, police say

IRS phone scams, ‘virtual kidnapping’ reported to police in Worcester County

Ashland woman, police called in latest IRS scam

Speaking of scams:

"On Feb. 3, 1913, the 16th Amendment to the U.S. Constitution, providing for a federal income tax, was ratified."

Actually, it never was, and it was the act which also created the Federal Reserve. 

I mean who are you going to believe, me or the New York Times?

As for the scandal
:

Congressional inquiry clears IRS of collusion charges

Smells like a cover-up to me.