Tax Returns Filed for You Free, But You Lose Your Refund

In Albuquerque, Danielle Chavez went to file her federal income tax return. She had over $2,000 coming back to her and she was counting on this money.

To her surprise, her return was rejected. It seems that she'd already filed her return and received a tax refund anticipation loan through Jackson Hewitt. As it turns out, an identity thief went to the tax preparer with a W2 with Chavez's information on it. The thief received her refund and disappeared. Chavez is now jumping through many hoops to clear her name. She also has to re-file her taxes by mail. The IRS will verify that it is in fact the real Danielle Chavez this time and will give her another refund. This may take months, however.

Chavez has retained an attorney and wants the public to be aware of this tax scam. The failure to verify identification at the preparers office has caused her work and heartache.

While we don't know exactly how the identity thief had a W2 for Chavez, it is a prudent reminder to rescue your mail as quickly as possible if it is in an accessible mailbox. Use a post office box or service to protect your mail if necessary. And get a crosscut shredder. Never throw documents like this away without first destroying them. And when they are retained in your home or business, keep them secured.

Yes, That is a Real $5 Bill

The Federal Reserve Board is placing a new $5 bill into circulation today. This newly designed currency incorporates new security features.

If you hold the new $5 bill to the light, you'll see a new watermark and a security thread. Here is a description from the FRB of these new features:

• Watermarks: There are now two watermarks on the redesigned $5 bill. A large number "5" watermark is located in a blank space to the right of the portrait replacing the previous watermark portrait of President Lincoln found on the older-design $5 bills. A second watermark -- a column of three smaller “5”s -- has been added to the new $5 bill design and is positioned to the left of the portrait.
  
• Security Thread: The embedded security thread runs vertically and is now located to the right of the portrait on the redesigned $5 bill. The letters "USA" followed by the number "5" in an alternating pattern are visible along the thread from both sides of the bill. The thread glows blue when held under ultraviolet light.
  

The MoneyFactory is a website from the Bureau of Engraving and Printing. This site has images and excellent descriptions of the new bill.

You have an IRS refund, and someone wants it.

Even before the Economic Stimulus package was approved, scammers were sending emails wanting to verify your personal information to process your rebate. It is a scam.

The Federal Trade Commission has issued a warning to consumers advising them that the IRS and Social Security Administration do not collect refund or rebate information by telephone or email. This is a phishing attempt to get your personal information over the phone or a phony website. This information could then be used to facilitate identity theft.

Keep your confidential information confidential. Don't provide it over the web and don't provide it to someone who calls you. Even if they give you a number to call them back, verify that the number is correct before you call them. These scammers are known to provide fake call-back numbers that just ring in their offices, just like they'll provide false website addresses.

The FTC notice is here.