The IRS, the states and the tax industry have joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Many of these safeguards will be invisible to you, but invaluable to our fight against these criminal syndicates. If you prepare your own return with tax software, you will see new log-on standards. Some states also have taken additional steps. See your state revenue agency’s web site for additional details.
We also know identity theft is a frustrating process for victims. If you become a victim, we are committed to resolving your case as quickly as possible.
What is tax-related identity theft? Tax-related identity theft occurs when someone uses your stolen personal information, including your Social Security number to file a tax return claiming a fraudulent refund.
You may not know you’re a victim of identity theft until you’ve been notified by the IRS of a possible issue with your return.
Know the warning signs. Be alert to possible tax-related identity theft if:
• You get a letter from the IRS inquiring about a suspicious tax return that you did not file.
• You can’t e-file your tax return because of a duplicate Social Security number.
• You get a tax transcript in the mail that you did not request.
• You get an IRS notice that an online account has been created in your name.
• You get an IRS notice that your existing online account has been accessed or disabled when you took no action.
• You get an IRS notice that you owe additional tax or refund offset, or that you have had collection actions taken against you for a year you did not file a tax return.
• IRS records indicate you received wages or other income from an employer you didn’t work for.
If you suspect you are a victim of identity theft, continue to pay your taxes and file your tax return, even if you must do so by paper.
Steps to take if you become a victim. If you are a victim of identity theft, the Federal Trade Commission recommends these steps:
• File a complaint with the FTC at identitytheft.gov.
• Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records:
– Equifax, www.Equifax.com, 800-525-6285
– Experian, www. Experian.com, 888-397-3742
– TransUnion, www.TransUnion.com, 800-680-7289
• Contact your financial institution and close any financial or credit accounts opened without your permission or tampered with by identity thieves.
If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps.
Respond immediately to any IRS notice; call the number provided.
Complete the IRS Form 14039, Identity Theft Affidavit, if your e-filed return rejects because of a duplicate filing under your SSN or you are instructed to do so. Use a fillable form at IRS.gov, print, then attach the form to your return and mail according to instructions.
If you previously contacted the IRS and did not have a resolution, contact us for specialized assistance at 1-800-908-4490. We have teams available to assist.
About data breaches and your taxes. Not all data breaches or computer hacks result in tax related identity theft. It’s important to know what type of personal information was stolen.
If you’ve been a victim of a data breach, keep in touch with the company to learn what it is doing to protect you and follow the “Steps for victims of identity theft.” Data breach victims should submit a Form 14039, Identity Theft, only if your Social Security number has been compromised and your e-file return was rejected as a duplicate or IRS has informed you that you may be a victim of tax-related identity theft.
How to reduce your risk. Join efforts by the IRS, states and tax industry to protect your data. We all have a role to play. Here’s how you can help.
• Always use security software with firewall and anti-virus protections. Use strong passwords.
• Learn to recognize ad avoid phishing emails, threatening calls and texts from thieves posing as legitimate organizations such as your bank, credit card companies and even the IRS.
• Do not click on links or download attachments from unknown or suspicious emails.
• Protect your personal information and that of any dependents. Don’t routinely carry Social Security cards, and make sure your tax records are secure.
Source: IRS.gov
