Arizona tax officials stop 13 fraud scams during coronavirus outbreak
May 8, 2020, 4:05 AM | Updated: 7:18 am
(Photo by 401Kcalculator.org/Creative Commons)
(Photo by 401Kcalculator.org/Creative Commons)
PHOENIX — While many stores and restaurants around the state have closed their doors during the coronavirus pandemic, scammers continue to prey on unsuspecting residents.
Since COVID-19 fully emerged in Arizona, the Arizona Department of Revenue has pinpointed and stopped 13 tax fraud schemes using stolen or created identities, ADOR said in a press release Monday.
The amount of tax fraud for the calendar year has totaled more than $10 million, a 50% increase compared to last year.
Of the 13 scams caught, two stood out to ADOR because of the tactics used.
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One scam stole the identities of young individuals with refund requests ranging from $48 to $5,000.
Another used the identities of retired or deceased taxpayers to submit fabricated 1099-R forms, which report distributions from pensions, retirement or profit-sharing plans, and annuities, the release said. From there, the scammers filed tax refund claims ranging from $109 to $8,999.
According to ADOR, 99% of individual income tax returns filed in Arizona are legitimate. Since 2015, approximately $130 million in tax refund fraud has been stopped by ADOR.
