Taxpayer Identity Theft

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No one likes tax time;  there are too many forms to complete and often there is money to send.  Well, as with any situation, wait, it will get worse — and it has.  Thieves are filing taxes using your social security number and directing the refunds to themselves.  You may be unaware you are a victim until you try to file your taxes and learn one already has been filed using your social security number.  Or, you may learn from the IRS that you owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return.  Another way you can find you have a problem is if IRS records indicate you received wages from an employer unknown to you.  Of course the problem worsens because if they have your social security number, they may also be stealing other aspects of your identity.

This is a major problem and you need to act immediately!

If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends you take these steps:

  • Respond immediately to any IRS notice; call the number provided
  • Complete IRS Form 14039, Identity Theft Affidavit. Use a fillable form at IRS.gov, print, then mail or fax according to instructions.
  • Continue to pay your taxes and file your tax return, even if you must do so by paper.

If you previously contacted the IRS and did not have a resolution, contact the Identity Protection Specialized Unit at 1-800-908-4490.

Then, you need to address the other (non-IRS) dimensions of your identity theft.

  • File a report with your local police department
  • File a complaint with the Federal Trade Commission at www.identitytheft.gov or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261.
  • Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records:
  • Contact your financial institutions, and close any accounts opened without your permission or tampered with.
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IRS and the Internet

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Last night when I came home, there was a message from the IRS indicating that I had to call a special number and give them my personal information immediately or I would be arrested.  A friend of mine received the same message via email.  Another friend, who always pays her bills on time received an email that said the IRS has filed a lawsuit and you must call ….. This email even added, “there will be no further warning.”   These were all intimidating messages, and the IRS has a reputation for being intimidating.  But, they clearly  were all scams because as the IRS Commissioner says, “[their] way of contacting you is by letter.”  They also tend not to threaten you if you don’t pay immediately.  You can view other scams allegedly involving the IRS on their fraud page at http://www.irs.gov/uac/Tax-Fraud-Alerts.

What do you do if you get this call or email?  Hang up the phone and delete the email;  then go on with your life.  Even if these people have personal information or even the last four digits of your social security number, ignore them.  Then report them.