IRS "tax refund" for $53 - but we haven't filed yet

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sport
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by sport » Sun Feb 24, 2019 10:10 am

One time, an unknown deposit for about $4000 showed up in my checking account. I called the branch manager and shortly after, the money was "withdrawn". That was the end of it. Later I asked the manager what happened and he told me it was a teller error entering a deposit. I knew they would catch it eventually, so I made their job easier as they did not have to hunt for the money.

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BrandonBogle
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by BrandonBogle » Sun Feb 24, 2019 10:59 am

retired early&luv it wrote:
Sun Feb 24, 2019 9:45 am
After hearing about the scams of people filing tax returns in names of other people and claiming big refunds, I set up an IRS account so I can check status.

Once a week starting at end of January I have been checking to make sure nobody has filed for me, it is in my electronic calendar to remind me to check. I plan to file my taxes in a few days, worked on them yesterday, plan to print them off today to do some manual checks before I e file in a few days.

Once they are filed and IRS says they have them, then I can quit checking their website until next January.
If you have this strong of a concern, why don't you set up an identity theft PIN with the IRS? I set one up a few years ago after my mom had a fraudulent tax return filed on her social (in additional to the lady opening up credit cards - those those banks called us b/c of existing accounts). Each year I get mailed a PIN for me and she gets mailed a PIN for her. They are required on our tax returns or else they are rejected by the IRS.

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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by LadyGeek » Sun Feb 24, 2019 11:27 am

I should point out that you need to enter both the bank's routing number and the account number. Both have to be correct to authorize an ACH transfer.
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8foot7
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by 8foot7 » Sun Feb 24, 2019 11:32 am

Stinky wrote:
Sun Feb 24, 2019 8:14 am
8foot7 wrote:
Sun Feb 24, 2019 7:54 am
No good deed goes unpunished. This is why I would have waited to contact anyone, especially a fraud department, because the simplest, most logical explanation for a one-time random small deposit was that someone mistyped their account number. I surely would not have called the bank’s Fraud department after the IRS confirmed there was no fraudulent activity on my account with them. Let me guess; they even took the $53 back?
I agree that no good deed goes unpunished.

I'm annoyed with myself that I called the bank, after the IRS confirmed that there was nothing amiss with my tax account. But I didn't call the Fraud Department directly - my initial call to the bank prompted an internal referral to the Fraud Department.

And yes, they left the $53 in my old account, and I no longer have access to it. Leaving the money in the old account avoids another unpleasant possibility for me. If "Jane Doe" ever gets her act together and the IRS tries to take out the $53 from my old account, the bank would charge me an overdraft fee on the old account if there isn't $53 in the account.
Ah, well. At least you got new checks - I like your ability to see the bright side. :sharebeer

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CABob
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by CABob » Sun Feb 24, 2019 11:35 am

However, the Fraud team REALLY doesn't like "unauthorized activity" on an account, even if it is a deposit. They offered me two options - either (a) get a new account number, or (b) keep the current account number, which would be under "heightened scrutiny" for the next 30 days. That is, they would call me to verify every deposit and withdrawal to the account, which would increase processing time by a day or two for each transaction. After 30 days, the only way I could keep the current account number is to sign a waiver of ANY liability for fraud, no matter whether the bank or some third party defrauded me, for as long as the account is open.
This sounds like a good news/bad news scenario. I like the "heightened security " part but the agreement to liability waiver for the life of the account is onerous and I suspect illegal.
Bob

bwatts849
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by bwatts849 » Sun Feb 24, 2019 11:36 am

The IRS has a publication on fraudulent electronic deposits:

Scam Alert: IRS Urges Taxpayers to Watch Out for Erroneous Refunds; Beware of Fake Calls to Return Money to a Collection Agency.

Good luck. This smells like a scam.

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8foot7
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by 8foot7 » Sun Feb 24, 2019 11:41 am

bwatts849 wrote:
Sun Feb 24, 2019 11:36 am
The IRS has a publication on fraudulent electronic deposits:

Scam Alert: IRS Urges Taxpayers to Watch Out for Erroneous Refunds; Beware of Fake Calls to Return Money to a Collection Agency.

Good luck. This smells like a scam.
Did you read the thread?

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Stinky
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by Stinky » Sun Feb 24, 2019 1:33 pm

JohnFiscal wrote:
Sun Feb 24, 2019 9:09 am
I had a similar situation this month with Mrs. Fiscal's savings account at Royal Bank of Canada (we maintain this account north of the border for our transactions there).

A deposit of $501 showed up, identified as "EI Canada". Mrs. F knew nothing about this. Thoughts of some scam swept through my mind but then we decided it was extremely likely that this was someone's employment insurance (what we call "unemployment" here in US).

I notified RBC that this deposit was "not ours". I suggested that it could be employment insurance but had no way to know for certain. In the OP's case they knew it was the IRS so they could make contact directly, we were not positive of the source of this deposit.

While RBC was investigating there was a second deposit of $1,002 (twice the original amount...like there was one month and then another month of "EI", whatever that was). Notified RBC again.

This seems to have been sorted out as the two deposits were retracted. What bothers me is that RBC did not send a notice through the secure internal email system that this had been resolved.

And just today there is a new wrinkle to this. I checked the account while writing this and now there is an additional withdrawal of $501 from "Canada".

"EI Canada" deposited $501 and $1,002. Now it was drawn back $501, $1,002, and $501. Plus a $5 bank charge that must be related to all this. So now they're stealing from Mrs. Fiscal. I think this will require a phone call to the branch and I think we'll opt for the "new account number, please".
This is very interesting. It could be a simple mistake by “EI Canada”.

But it could also be an attack in your account. Last time they took out $501. But, if you don’t take action, maybe the next “withdrawal” will be $5,010.

As you get more information, please post it. Either to this thread or a new one. I, for one, would be interested to hear about your experience.
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JohnFiscal
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Re: IRS "tax refund" for $53 - but we haven't filed yet

Post by JohnFiscal » Sun Feb 24, 2019 3:23 pm

Stinky wrote:
Sun Feb 24, 2019 1:33 pm
JohnFiscal wrote:
Sun Feb 24, 2019 9:09 am
I had a similar situation ...
"EI Canada" deposited $501 and $1,002. Now it was drawn back $501, $1,002, and $501. Plus a $5 bank charge that must be related to all this. So now they're stealing from Mrs. Fiscal. I think this will require a phone call to the branch and I think we'll opt for the "new account number, please".
This is very interesting. It could be a simple mistake by “EI Canada”.

But it could also be an attack in your account. Last time they took out $501. But, if you don’t take action, maybe the next “withdrawal” will be $5,010.

As you get more information, please post it. Either to this thread or a new one. I, for one, would be interested to hear about your experience.
I spoke with Royal Bank this morning (Sunday). They confirmed that the deposits were from the Federal government of Canada (not "Bob's EI Canada"). The name on the deposit for EI did not match "Mrs. Fiscal". The bank itself had rolled back the two deposits ($501 and $1,002) "internally" to some account, but then the government also took back $501, which is where we got dinged. Bank anticipates that government may set up transaction to take back the $1,002. There's also a $5 charge from the bank for an "internet transfer" (this is a savings account, so such transfers are not free) for sending the government's money back to them; bank will restore this as well. Bank rep said they will "watch the account closely" for if the government sets up a transaction to get back (another copy of) the $1,002.

Sounds like the bank took action based on my reporting to them. Then the government itself realized the error and also took action.

Mrs. Fiscal took action herself this morning also by moving 99% of the savings account (a large amount of over $53,000 Cdn) to a different account leaving about $30 in the wounded account. Myself, I wouldn't have done this (for multiple reasons) but she's the Missus.

At this point it's known not to be fraud but simple clerical issues.

Another post mentions that in order for the deposit to hit they have to have both the routing number and account number. Although I suppose it's easy enough to miss a digit on the account number and the routing number is common to all accounts at that bank.

My American Express card was attacked this way just this month. A small charge of around $30 (caught and reported), then 10 days later a large charge of $4,600 at an industrial auction. That's all good now too and the events are unrelated.

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