What
is tax identity theft?
It’s
a fast-growing crime that costs taxpayers billions
of dollars a year, and shows no signs of abating. Someone uses
a taxpayer’s personal information to commit fraud on tax returns to claim
refunds or for other crimes, including:
- Filing a fraudulent tax
return using another person’s Social Security number
- Claiming someone else’s
children as dependents
- Claiming a tax refund
using a deceased taxpayer’s information
- Earning wages under
another person’s Social Security number
How
does it work?
Crooks
look for discarded tax returns, bank records, credit card receipts, Medicare
cards and more, often relying on email or telephone phishing, dumpster diving
or stealing from your mailbox. They use that info to file for a tax refund before
you do. When you file your return later, IRS records will show the first filing
and refund, and you’ll get a notice or letter from the IRS.
What
can you to do protect yourself?
Reduce
tax time stress. File as early in the season as possible,
and mail tax returns directly from the post office. If filing electronically,
use a secure network and encrypt.
Stay
safe online. Do not respond to emails that appear to
be from the IRS, and never click on links! The IRS does
not send unsolicited, tax-account related emails and
never asks for personal and financial information.
Protect
your personal information. Never store important
account numbers or data in purses or wallets, or on smartphones.
Use a shredder for paper documents, and install a locking mailbox.
Monitor your
accounts and review financial statements regularly. Sign up for your
free annual credit report at www.annualcreditreport.com.
Think
you’re a victim of tax ID theft?
Take
these four steps right away:
- File a report with the local police.
- Contact your bank and credit card companies. Inform credit bureaus and consider freezing your accounts (a credit freeze restricts access to credit reports, making it unlikely that thieves can open new accounts in your name).
- Contact the IRS Identity Protection Specialized Unit at 800-908-4490 and complete Form 14039.
- Get an IP (Identity Protection) PIN from the IRS so they can verify your identity as they work with you on the theft going forward.
