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Oregon's biggest tax fraud.

A state computer red-flagged an allegedly fraudulent $2.1 million tax refund, but "human error" allowed the scam to slip through the Oregon Department of Revenue, a spokesman for the state agency said Thursday.

Department of Justice agents arrested Krystle Marie Reyes, of Salem, Wednesday on accusations that she used Turbo Tax computer software to file a fake tax return claiming she had earned $3 million and was owed a refund of $2.1 million. Oregon revenue officials approved the refund, and Turbo Tax issued Reyes, 25, a prepaid Visa debit card with the full refund amount on it.

She spent $200,000 between February and April before reporting the card stolen. At that point, state revenue officials "double-checked" the tax return, determined it was fraudulent and notified the Justice Department. Intuit, the company that owns Turbo Tax, has returned $1.9 million to the state... It's unclear what might have happened if Reyes had not lost the debit card.

No fair -- I never got debit cards from TurboTax for my state tax refunds. Human error? What kind of human might think she could have overpaid her taxes by $1.8 million on an income of $3 million? Sheesh.

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