Better Business Bureau in Sioux Falls Warns Residents About Tax Scam

The Internal Revenue Service is paying out billions of dollars in fraudulent tax refunds to identity thieves; a problem that Jessie Schmidt of the Better Business Bureau in Sioux Falls says is a growing problem.

"Thousands of Americans will receive a letter from the IRS telling them that a tax return has already been filed with their social security number. Criminals find your social security number from a variety of locations. They create all kinds of fake documentation to substantiate a tax return. The only thing on the tax return that is true is your social security number."

If you are the victim of a fraudulent tax return, Schmidt advises you to contact the Internal Revenue Service to let them know of the identity theft.

"You know because these criminals file so quickly, they've got the money and are long gone. Now it's up to you to prove that you are who you say you are. You have to fill out additional  tax documentation. File that with the IRS and you probably ought to take a look at your credit reports and see if any additional credit is in your name and social security number."

The scam is so rampant that thieves are apparently sending in false returns in bulk without even bothering to change the mailing address on the returns.