*This article is an original work of the ISMA and was released as an ISMA Special Alert on April 8, 2014.
Here are the details and
what you need to do
Based
on reports from physicians and accountants, the ISMA has previously issued
several alerts about physician identity theft and tax fraud at the federal
level. The ISMA has now learned the Indiana Department of Revenue (DOR) has
been investigating identity theft and tax return scams at the state level as
well. The DOR confirmed the scam impacts various health professionals,
including physicians, nurses, dentists and oral surgeons, and noted a
proliferation of such cases since March.
“The
Department has been catching and stopping hundreds of the fraudulent claims and
saving millions of dollars,” said Bob Dittmer, DOR spokesman.
Dittmer
said the department hired eight new tax investigators whose only job is to
uncover fraudulent claims.
While some fraudulent claims have been successfully identified by DOR before
they were actually filed, others have not been identified as fraudulent until
after they were filed. “They are viewing this as a large problem and are very
concerned. While their investigation has not yet identified the source of the
presumed breach, they are tracking all the cases, looking for patterns, and
actively investigating and pursing leads,” said Julie Reed, ISMA general
counsel, who spoke with the DOR investigation unit.
Reed also confirmed through the DOR that physicians from outside of Indiana
have been affected by this. More specifically, the DOR has identified cases in
which the identities of physicians located outside Indiana have been used to
file fraudulent Indiana tax returns.
Physicians
who have been defrauded at the state level will need to file a paper return—and
are advised to do so as quickly as possible. Also, physicians who have
determined that they are victims of tax fraud should notify DOR by calling
(317) 232-2240. There is no complaint form to fill out, but your call will be
routed properly to the investigation unit. Your state tax refund may be
delayed, but only by a few weeks, according to the DOR.
If
you have been victimized by this, contact your accountant immediately. They may
be able to execute an IRS and State Department of Revenue Power of Attorney
form, which allows them to discuss your situation with the taxing authorities
on your behalf.
“We
are maintaining contact with state and federal authorities. We have received
assurances from the Indiana authorities that they are investigating this matter
and intend to pursue it to its fullest.” Reed said.
Chuck Taylor, of the Indiana Attorney General's Identify Theft Unit, said,
"Our office is actively investigating the complaints we have received to
identify a common source of compromise. We urge victims to monitor their credit
reports to detect any additional fraudulent use of their personal information.
Anyone who believes they have been affected should file an identity theft
complaint.”
You can learn more about identity theft or file a complaint by visiting here.
The ISMA has offered to assist the DOR and the Office of the Indiana Attorney
General in any way possible
