Suspects target tax refunds

INDIANAPOLIS (WISH) - Federal investigators just wrapped up a sweep that netted 389 people suspected of tax fraud. According to IRS 109 of those suspects were arrested and 189 people were indicted.

This announcement comes after a Indianapolis woman filed a tax fraud report.

According to a police report, the woman added she learned that someone had filed her taxes before her in Dallas, Texas.

“We see it quite often,” said Linda Sutton General Manger of Liberty Tax. Sutton added 20 percent of the 600 customers who filed in her office last year found out a scammer had already filed on their behalf.

In most of the cases the suspects were able to file the fraudulent taxes by swiping someone’s Social Security numbers and other identifying information.

The IRS is double checking many of the tax returns also requiring filers to produce proof of residency for each person they claim on their taxes.

"It is brand new, this year, to the tax laws that we have to produce proof of residence with returns,” said Sutton.

The IRS has added more computer screening procedures in attempt to stop the crime. IRS estimated that in 2012 $20 billion in fraudulent refunds that compares to $14 billion in 2011.

On IRS.gov taxpayers can get help on that website is information on identity theft issues, You Tube videos, and tips for taxpayers to get the help they need if they find themselves to be a victim.