“There is no class of taxpayers that is immune to tax return identity theft,” says Lastowski. “Young, old, high-income, and low-income taxpayers have all been victims. Taxpayers are unaware that they are victims of tax return identify theft until their refunds are delayed or they are notified by the IRS that two returns have been filed under their Social Security number.”
Red flags
Be alert to possible tax-related identity theft if you receive an IRS notice or letter that states any of the following:
•More than one tax return for you was filed.
•You have a balance due, refund offset, or have had collection actions taken against you for a year you did not file a tax return.
•IRS records indicate wages received from an unknown employer.
Be proactive
The IRS recommends that you take the following steps to protect your tax and financial information:
•Don’t carry your Social Security card or any documents that include your Social Security number or Individual Taxpayer Identification Number.
•Don’t give personal information over the phone, via the mail, or on the Internet unless you have initiated the contact or know exactly who you are dealing with.
•Check your credit report at least once every 12 months.
•Secure personal and financial information.
•Use firewalls and anti-spam/virus software, update security patches, and periodically change passwords for Internet accounts on your personal computer.
Victim response
If you become a victim of identity theft, the IRS recommends that you do the following right away:
•Contact the IRS Identity Protection Specialized Unit at (800) 908-4490, ext. 245, so steps can be taken to secure your tax account.
•Report identity theft incidents to the Federal Trade Commission (FTC) at consumer.ftc.gov or the FTC Identity Theft Hotline at (877) 438-4338.
•File a report with the local police.
•Contact the fraud departments of the three major credit bureaus: Equifax, equifax.com, (800) 525-6285; Experian, experian.com, (888) 397-3742; and TransUnion, transunion.com, (800) 680-7289.
•Close any accounts that have been tampered with or opened fraudulently.
The IRS does not initiate contact with taxpayers by e-mail or phone to request personal or financial information. This also includes any type of electronic communication, such as text messages and social media channels.
Turn to your local CPA
Your local CPA can help you understand your money management issues. Be sure to contact him or her with all of your financial questions and concerns.
If you don’t have a CPA, you can find one by location or area of expertise at www.ineedacpa.org.
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