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Refund fraud fix?

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Letter to the Editor
Saturday, July 6, 2013, 9:00 p.m.

To lessen the hundreds of millions of dollars now being stolen through fraudulent income tax refunds, why not require that all refunds be sent to a bank of the citizen's choice?

None would be sent directly to the income-tax filer. On the IRS 1040 form, you would designate a bank to which your refund should be sent. When your refund arrives at the bank (not yet in your account), your bank notifies you it has arrived, and you visit the bank in person to transfer it into your account — but only after providing identification. This would solve much of the theft problem.

Paying the banks a small fee to handle this service would be far cheaper than the hundreds of millions of dollars now being stolen through fraudulent refunds. It would also prevent such checks from being stolen from mailboxes or lost.

And this effort would save the IRS (and taxpayers) millions of dollars by eliminating the printing and mailing of the checks.

Why wouldn't this work better than the current mess?

Bob Logue


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