The Iowa Department of Revenue has caught fraudulent claims for $200 million in state income tax refunds.
A source in the agency told Radio Iowa two claims for a total of $200 million came from what appears to be the same source in late November. The suspect claims for those state income tax refunds were detected and no money was paid out.
A written statement from the Iowa Department of Revenue’s spokesman said the agency has “strong and effective fraud detection procedures in place” and the department is “encouraging Iowa taxpayers and tax professionals” to be vigilant about protecting their personal information by creating strong passwords and spotting phishing attempts in email and text messages. The agency’s spokesman also said Iowans shouldn’t sharing things like Social Security and bank account numbers over the phone.
The $200 million worth of false state income tax refund claims were included in the overall November estimate the Department of Revenue provided to the Legislative Services Agency, but the money was never paid. The department has not released details about where the false claims originated.