Checks have not been mailed.
Taxpayers who chose to have their IRS refunds mailed to their homes say their checks never arrived and were stolen as part of a massive multi-million dollar fraud, according to the report.
More than 200 taxpayers who were expecting refund checks ranging from a few hundred dollars to up to $500,000 complained to Rep. Nicole Malliotakis (R-N.Y.) that they were victims of theft. The Wall Street Journal reported.
Malliotakis, who represents Staten Island, said the 218 cases his office handled involved checks totaling $3.8 million.
One of her constituents had to resubmit her request to the IRS four times before receiving a refund check.
“People are getting these checks reissued, and the reissued checks are being stolen,” Malliotakis told the Journal.
Bennett Grimm, an Atlanta-based spine surgeon, told the Journal that he was notified by the IRS in February that he expected to receive his refund check from his amended 2021 tax return within two to three weeks. .
Grimm said he expects the IRS to pay him a check for $96,000 after he sells his medical practice.
However, by May, the check had not arrived.
When a new check was requested for his account, the check was stolen and fraudulently deposited, the paper said.
Grimm said he is currently waiting for his third refund check.
More than 90% of taxpayers choose to receive their refund through direct deposit, which requires providing bank account information to the IRS.
But an estimated 10 million filers choose to receive paper checks, making them a target for theft.
People who receive paper checks cannot convert their funds to direct deposit for the tax year if they are lost or stolen.
“We strongly encourage direct deposit,” IRS Commissioner Danny Warfel told the Journal.
“This is the fastest and safest way for us to get refunds to taxpayers.”
Taxpayers whose refund checks are lost or stolen are encouraged to: Fill out the IRS Taxpayer Statement Complete the form and mail or fax it to the IRS office where your return was filed.
If the Treasury Department determines the claim is legitimate, a new check will be sent.
This process can take up to four months, but in some cases it can take less than 30 days.
Last year, the Financial Crimes Enforcement Network issued a warning about a nationwide increase in theft-related check fraud.
In February, two New York residents were sent to federal prison for stealing a $2.9 million IRS refund check addressed to a Houston couple.
In August, a Los Angeles man was sentenced to more than seven years in prison for using Instagram to solicit bank account holders to deposit stolen checks worth at least $2.7 million.
The IRS said it is modernizing its core technology to include more features to help taxpayers log into their accounts online.
“We need to be very careful and thoughtful as we modernize,” Werfel told the Journal.
