By Brett Wolf

NEW YORK (Thomson Reuters Accelus) - U.S. Treasury Department reminded financial institutions of their obligation to lend a hand as the Internal Revenue Service struggles to crack down on rampant schemes using identity theft to obtain fraudulent tax refunds via electronic filings.

“Financial institutions are critical in identifying tax refund fraud because the methods for tax-refund distribution – direct deposit into demand deposit accounts, issuance of paper checks, and direct deposit into prepaid access card accounts – are often negotiated and deposited at various financial services providers,” Treasury’s Financial Crimes Enforcement Network (FinCEN) stated in an advisory issued Friday. (more…)