A New York Times article describing a cyber espionage unit, allegedly affiliated with the Chinese Army, that has made significant efforts towards infiltrating the computer networks of anything in the US that can be penetrated. The article is apparently based on a report released by Mandiant Corporation (PDF).
The New York Times article does not draw a direct line between the Chinese government and the South Carolina Department of Revenue hacking incident, but you do the math and see what you get.
Columbia, SC (February 8, 2013) — Whether picking up tax forms or meeting with a representative, the Department of Revenue is reminding taxpayers to visit the agency’s Main Office location at 300A Outlet Pointe Boulevard in Columbia.
In December 2012, the Department of Revenue’s Main Office in Columbia opened its doors to the public at its new location on Outlet Pointe Boulevard located off of Bush River Road. Previously, the Department was located in downtown Columbia at 301 Gervais Street.
With additional Taxpayer Assistance Offices located statewide in Charleston, Florence, Greenville, Myrtle Beach and Rock Hill, Department of Revenue personnel are ready to assist individuals Monday through Friday from 8:30 a.m. to 5 p.m.
To find the nearest Taxpayer Assistance Office in your area, contact the Department of Revenue at (803) 898-5000 or visit www.sctax.org.
Tax On Wheels, LLC received the following message from the South Carolina Department of Revenue and we pass it along for your consideration.
Tax Professionals: Encourage Electronic Filing This Tax Season
The South Carolina Department of Revenue places the highest priority on safeguarding taxpayer information entrusted to it by all taxpayers. The electronic filing of tax returns with the Department has always been, and will remain, a safe, secure and efficient means of filing.
In light of the recent computer security breach, it is important to note that no data was lost in the transmission of tax information upon submission to or from the Department. Confidential information that was stored on the Department’s computer servers was hacked into and then stolen in a criminal act.
Since this incident, measures have been taken to heighten the protection of confidential data so as to avoid future security compromises, and upon recommendations from cyber-security experts, additional security safeguards have been implemented and will continue to be further established in the future.
Taxpayers are safe and secure in filing their state tax returns electronically as it is the most efficient means of filing for taxpayers. As tax professionals, you are aware that with electronic filing comes many advantages for the taxpayer including receiving a refund in a shorter amount of time as well as less opportunity for errors.
Throughout the individual income tax filing season, information will be provided to the public as it is available. Our goal is to keep taxpayers informed and aware of any helpful information regarding the filing of tax returns and ensure to the public that filing electronically with the Department is secure. Current information that may be useful throughout the individual income tax season is available online at www.sctax.org under the “Individual Income” link.
Security safeguard measure implemented to aid in the prevention of tax fraud
Columbia, SC (February 11, 2013) — New for 2013, the SC Department of Revenue (DOR) has implemented a security safeguard measure to help prevent fraud-related individual income tax filings.
Through the security program, income tax returns filed in 2013 will be processed by means of a new security safeguard measure in order to insure no fraudulent activity. For tax returns that are questionable, DOR will mail the taxpayer a letter asking for additional information in order to complete the processing of the return. The letter will detail instructions for the taxpayer to either go online or to call DOR in order to answer questions specific to the individual. Once this process has been successfully completed, the tax refund will be issued to the individual.
The goal of the security program is to protect taxpayers from fraud by individuals filing tax returns in a legitimate taxpayer’s name. Additionally, DOR has implemented the program in an effort to decrease the number of fraudulent tax returns and, subsequently, decrease the issuance of fraudulent tax refunds.
Income tax filing
In keeping with filing dates of the Internal Revenue Service, DOR opened the 2013 electronic filing season for processing on January 30. It is the goal of DOR to assure taxpayers that filing electronically is and has always been a secure method, and taxpayers should continue to utilize this means of filing as it is more efficient than filing paper returns.
It would appear that the South Carolina Department of Revenue has reconstituted its efforts at arresting those who seem to struggle with following state tax law. You may recall that the SCDOR was on a bit of a roll locking up tax cheats up until the recent unpleasantness regarding data hacking of private taxpayer information. Apparently the SCDOR is no longer distracted and has returned to keeping the streets safe from tax scofflaws. Their latest press release follows.
Columbia, SC (February 8, 2013) — Tracy Renay Williams was arrested today by investigators from the SC Department of Revenue for 12 counts of tax related charges.
Williams, 35, is charged with four counts of forgery, four counts of assisting in the preparation of a fraudulent tax return, and four counts of conspiracy; he is currently being held at the J. Reuben Long Detention Center in Conway awaiting a bond hearing.
For the 2011 tax year, Williams provided fraudulent W2 forms to individuals in order to have income tax returns prepared in each of their names. Williams willfully assisted in the preparation of the fraudulent tax returns which resulted in the individuals requesting tax refunds totaling over $32,000, to which they were not entitled.
Williams, a Green Sea resident, could face up to 60 years in prison and/or up to $22,000 in fines if convicted of the 12 charges.
This is the latest arrest by the SC Department of Revenue in part of an ongoing investigation in the Horry County area. A string of other arrests have previously occurred in relation to the investigation, and more arrests are expected.
This item was originally posted on November 23, 2012. As we enter tax season this has become a popular topic once again and we are re-posting this for your convenience.
It took a couple of weeks for the public to be notified of the theft of South Carolina tax information and a couple more weeks for useful information to begin to trickle out. With that as the foundation of this issue it is apparent that speed is not going to save the day. So there really is no need to get into a panic and rush through anything. For those of us who have had our tax information stolen this will be a race of endurance, perhaps a lifelong struggle to secure our identity.
The SCDOR cyber theft heralds the end of a world where there is even a semblance of privacy. If it ever did exist, privacy is certainly a thing of the past. South Carolina is simply the biggest fish to get caught so far. Even before the SCDOR hacking was announced to the public, a major insurance company contacted authorities regarding the theft of several thousand social security numbers in a similar cyber theft incident. Folks, we are simply not in Kansas anymore.
Before we provide our list of recommended actions to protect yourself from these crimes, I would like to ask you a few questions.
While you are chewing on that let’s explore the grassy knoll a bit more and list a few things that I think you can do to protect yourself not only from the criminals working outside the system but also from the fine upstanding corporations who trade our identities like so many marbles after school at the neighborhood playground.
This list is still evolving and may grow as we find new information so check back often.
If you need assistance with the issues raised in this post please feel free to contact Tax On Wheels, LLC at 803 732-4288.
The South Carolina Department of Revenue places the highest priority on safeguarding taxpayer information entrusted to it by all taxpayers. The electronic filing of tax returns with the Department has always been, and will remain, a safe, secure and efficient means of filing.
In light of the recent computer security breach, it is important to note that no data was lost in the transmission of tax information upon submission to or from the Department. Confidential information that was stored on the Department’s computer servers was hacked into and then stolen in a criminal act.
Since this incident, measures have been taken to heighten the protection of confidential data so as to avoid future security compromises, and upon recommendations from cyber-security experts, additional security safeguards have been implemented and will continue to be further established in the future.
Taxpayers are safe and secure in filing their state tax returns electronically as it is the most efficient means of filing for taxpayers. As tax professionals, you are aware that with electronic filing comes many advantages for the taxpayer including receiving a refund in a shorter amount of time as well as less opportunity for errors.
Throughout the individual income tax filing season, information will be provided to the public as it is available. Our goal is to keep taxpayers informed and aware of any helpful information regarding the filing of tax returns and ensure to the public that filing electronically with the Department is secure.
Current information that may be useful throughout the individual income tax season is available online at www.sctax.org under the “Individual Income” link.
Courtesy Drake Software
A few months have now past since the big hacking incident at the South Carolina Department of Revenue revealed the social security numbers of millions of South Carolina taxpayers. While many of us were intently focused on this issue from day one, many others actually have a life and may have missed a few beats.
South Carolina ETV conducted a recap of sorts during an episode of their weekly program “The Big Picture” hosted by Charles Beirbauer. This program was broadcast shortly after this incident came to public attention. So if you feel that you need a bit of a refresher on the details of the hacking incident as we begin tax season, or if you want to gather information on protecting yourself from identity theft, you may want to view the archived broadcast here.
Columbia, SC (January 15, 2013) — The South Carolina Department of Revenue (SCDOR) is joining the South Carolina State Library and the South Carolina Department of Consumer Affairs (SCDCA) to provide taxpayers with informational material on minimizing the possibility of identity theft.
Available to all South Carolina taxpayers, the series of webinars held January 16, 17 and 18 titled The Truth About Identity Protection will address taxpayers’ concerns regarding security breaches, credit reports, and enrolling in credit monitoring services. Staff members from SCDOR, the State Library, and SCDCA will provide webinar attendees with detailed information and will also answer questions and address concerns during this online session.
It is encouraged that libraries, companies, and organizations offer sessions to staff members or the public by showing the webinar in a meeting room or computer lab. Individuals can also participate from home via the Internet. To register, visit the South Carolina State Library’s calendar of events or select from the dates below.
January 18, 2013 10:00-11:30am
Please contact Tax On Wheels, LLC at 803 732-4288 if you need assistance with this subject.
Columbia, SC (January 11, 2013) — Investigators with the South Carolina Department of Revenue have arrested 18 individuals this week in an ongoing investigation targeting those who claim to be exempt from taxation with their employers and fail to file required state income tax returns.
Those arrested in the investigation filed W4 forms with their employers claiming to be exempt from taxation which caused little to no taxes to be withheld from their paychecks. Those same employees failed to file tax returns for multiple years.
This statewide investigation resulted in charges of tax evasion against 18 individuals from the low country, midlands and upstate. The 18 individuals collectively earned over $6 million during the period of investigation and have a collective state tax liability of nearly $285,000.
The individuals arrested are as follows:
Each charge of tax evasion carries a possible sentence of up to five (5) years in prison and/or a $10,000 fine. These cases will be forwarded to the Attorney General’s office for prosecution.
Assisting in the arrests include the Richland County Sheriff’s Fugitive Task Force, the Lexington County Sheriff’s Fugitive Task Force, and the Greenville County Sheriff’s Department. Further arrests are expected as this investigation is ongoing.