An Old Scam with A New Twist

Pastor Jones called our office, upset that he had received a call from “the IRS.”
The individual who had called him told him that the IRS had deposited a refund into his bank account in error and that he needed to forward that refund to them immediately.
The Pastor checked his bank account to discover an actual deposit had been made, but how could the IRS deposit to his account in error when he had not given his bank account number to the IRS?

Potential Cyber Scams Are Not New

What had happened to Pastor Jones was nothing but an old tax scam with a new
twist. For years, innocent people have received calls from someone claiming to be from the Internal Revenue Service (IRS). Some of these calls have threatened the individuals with impending warrants for their arrest due to money the caller claims the individual owes the Federal Government.

Because we provide Church Management Counsel to Pastor Jones and his church, we immediately researched the issue and discovered that someone had fraudulently obtained his bank routing and account number. The scammers then filed a false claim with the IRS and deposited it into Pastor Jones’ account. They intended to get Pastor Jones to access the money, send it to them, and they would be free and clear while Pastor Jones would have ended up with a bill for the claim from the IRS plus penalties and interest.

What Everyone Should Know About Tax Scams

Please be aware that the IRS will not call anyone and tell them that a warrant is issued. As a matter of fact, if you will call back to the number they provide and call their bluff, they hang up immediately. As for the new twist on the scam mentioned above, IRS spokesman Eric Smith provided us with the following steps to take should anyone receive a call similar to Pastor Jones.

Mr. Smith suggested that no one return calls to the scammers, and we agree. We know our business, so we did this to bait the scammers. That is why they immediately disconnected.

Appropriate Steps to Take

If money that you were not expecting was deposited into your account from the
IRS, you should take the following steps:

  1. You will need to return the money—just do not return it to those who have called
    you.
  2. Close your bank account and contact your tax preparer.
  3. To return the fraudulent refund, go to www.irs.gov and search for “Topic
    Number: 161—Returning an Erroneous Refund—Paper Check or Direct Deposit.”
    Then follow the steps provided in that article.
  4. If it was deposited into your bank account, contact the “Automated Clearing
    House” (ACH) department of your bank. See if you can have the deposit returned
    directly to the IRS. You must also call the IRS to explain why the refund is
    returned. Individuals should call 800-829-1040. If you are a business, call 800-
    829-4933.
  5. If the erroneous refund came to you as a paper check, write “void” on the back
    where you would normally endorse it. Then send the check to the IRS location
    based on the city listed on the refund check. Include a note explaining why you are
    returning the refund. Make a copy of the check and return the original via
    certified mail to be on the safe side.
  6. It is imperative that you return the money as soon as possible. By law, interest
    may have accrued on the fraudulent refund.

Mr. Smith further advised that these types of scams are another reason why no
one should procrastinate in filing their tax returns. If you have fallen for a tax scam, read the IRS’ “Taxpayer Guide to Identity Theft” at www.irs.gov.

Why You Need Us in Your Corner

Chitwood & Chitwood is the number one Church Management and Accounting firm in the nation. With 80 years of experience, we are savvy to everything that Churches and Clergy may encounter.

We file more Ministers’ Income Tax Returns than anyone and get Ministers back an average of $2000 more than other firms. The reason is we have been doing it longer, and we know Ministers’ benefits that others do not know.
We encourage you to contact us if you have not filed your return or if it has been prepared, send it to us for review before filing it. We will review it to see how much we can save you.
At our live Conferences all across the nation, we cover this and many other topics
that every Minister and Church Leader should know. To register for an upcoming Conference, visit us at www.cmtc.org or call 800-344-0076. It will be the best investment you and your Church can make this year.

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