Tax-related Identity Theft
The Internal Revenue Service (IRS) recently issued a warning about a new twist on the Tax-related Identity Theft. Identity (ID) theft is “a fraud that is committed or attempted, using a person’s identifying information without authority.” ID theft may involve stealing someone’s Social Security number (SSN), name, bank account, or credit card numbers, and using that information without permission.
Online ID theft is called phishing. A phishing scam involves fraudsters sending email messages to trick unsuspecting victims into revealing personal and financial information such as credit card numbers, account usernames and passwords, SSNs, etc.. Some ID theft starts with something as simple as someone stealing a wallet or taking or reading your mail.
Tax-related ID theft can affect you in two main ways:
- Someone uses your (stolen) identification information to file a fraudulent tax return and get a refund.
- Someone uses your (stolen) information to obtain employment, which can make it seem like you had more income than you actually earned.
How will you know if you are a victim of tax-related ID theft?
You may find out you're a victim of tax-related ID theft when you try to file your tax return or start getting IRS notices about your tax account.
The most common indicators are:
- You try to file your tax return electronically, but the IRS rejects your return because it has already received another return using your SSN;
- You receive an IRS notice showing you received wages from somewhere you never worked;
- You receive an IRS letter indicating one or more tax returns have been filed using your SSN; or
- You receive a balance due notice, refund offset notice, or have collection actions taken against you for a tax year when you didn’t file a return or receive a refund.
If you encounter these issues, please contact your CPA. For additional information, please click on the links below:
https://www.irs.gov/newsroom/tax-scams-consumer-alerts
https://www.irs.gov/newsroom/phishing-identity-theft-and-scams
https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft