How to Protect Yourself From Identity Theft During Tax Season

Tax season is already stressful enough without the added risk of fraud. Unfortunately, identity theft continues to affect taxpayers across the country. This article delves into…

• How tax identity theft usually occurs, and signs of fraud to be aware of.
• The best ways to protect family members from tax-season scams.
• How an experienced IRS attorney can help mitigate the damage caused by identity theft.

How Does Tax Identity Theft Usually Happen?

Almost always, tax identity theft begins when someone steals a Social Security number. This is usually done through a scam, where the victim is convinced to provide personal information.

Once the scammer has the Social Security number, they file a fraudulent tax return using that number but list their own address in order to receive the refund. The taxpayer who actually owns the Social Security number often does not realize what has happened until it is too late.

What Should I Do If I Receive An IRS Notice About A Tax Return I Did Not File?

Immediately call the number listed on the IRS letter. If you cannot reach someone by phone, you should write to the address on the notice and inform the IRS that you know nothing about the return and believe it to be identity theft. The IRS website also provides an identity theft hotline number that taxpayers can call for assistance.

What Steps Does The IRS Take To Resolve Tax Identity Theft Once It Is Reported?

Once identity theft is reported, the IRS will issue the taxpayer a Personal Identification Number (PIN). The taxpayer must include this PIN on all future tax returns. The IRS will also attempt to investigate and locate the individual responsible for the fraud. Sometimes they are successful, but often they are not.

Which IRS Letters Or Tax Documents May Signal Potential Identity Theft Or Fraud?

Identity theft typically involves individual tax returns. A taxpayer may receive:

• An audit letter regarding income that was not reported
• A notice suggesting suspicious activity or potential identity theft

These types of letters may be the first indication that a fraudulent return has been filed.

How Can Families Protect Elderly Relatives From IRS Scams And Tax-Related Identity Theft?

Families can regularly counsel elderly relatives (at least every six months) about being careful with personal information, including their name, address, and Social Security number.

Most scammers obtain Social Security numbers through phone calls. Elderly individuals need to be told that if they do not recognize the caller or the organization being referenced, they should never give their Social Security number over the phone.

Know that the IRS does not call taxpayers to request a Social Security number.

How Can An Experienced Tax Attorney Help Resolve IRS Identity Theft Issues Quickly And Effectively?

If a taxpayer brings an IRS letter to an attorney, the attorney can ensure it is answered correctly and promptly. Responding quickly is very important.

An experienced tax attorney also knows what information the IRS needs in order to properly investigate the theft and move the matter toward resolution.

Still Have Questions? Ready To Get Started?

For more information on tax identity theft protection, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.