Identity Theft Tips
Tax-related identity theft occurs when someone uses your stolen social security number to file a tax return claiming a fraudulent refund. Review the following sections below for information on how identity thieves target individuals, what you can do to protect yourself from identity theft, and how to report identity theft to the IRS.
How ID’s are Stolen: Common ways to obtain personal information include email or telephone phishing and Dumpster diving. Thieves are looking for discarded tax returns, bank records, credit card receipts or other records containing personal and financial information. For example, some taxpayers receive email messages allegedly from the IRS advising them that they are under investigation or have a refund pending. To get the victim to respond, the email may threaten a dire consequence. Often, the recipient is asked to click on a link to access what appears to be—but is not—the legitimate IRS website.
Know the warning signs: Be alert to possible identity theft if you receive an IRS notice or letter that states that:
How to reduce your risk
What can you do if you are a victim of income tax identity theft to help get your case resolved sooner: The best thing to do is to file a police report and then mail a paper tax return with an attached Form 14039 Identity Theft Affidavit and a copy of the police report to the IRS. This will shave an average of 54 days off of the time it takes the IRS to process your claim.
How ID’s are Stolen: Common ways to obtain personal information include email or telephone phishing and Dumpster diving. Thieves are looking for discarded tax returns, bank records, credit card receipts or other records containing personal and financial information. For example, some taxpayers receive email messages allegedly from the IRS advising them that they are under investigation or have a refund pending. To get the victim to respond, the email may threaten a dire consequence. Often, the recipient is asked to click on a link to access what appears to be—but is not—the legitimate IRS website.
Know the warning signs: Be alert to possible identity theft if you receive an IRS notice or letter that states that:
- More than one tax return was filed using your SSN;
- You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return;
How to reduce your risk
- Be aware of e-mails and/or phone calls asking for personal information from you (Important: the IRS will never initially ask for personal and financial information, including PINs and passwords, via email or phone; they will send you a notice in the mail first!)
- Never provide personal or confidential information to an unverified source
- Contact the financial institution or agency to establish legitimacy of the e-mail or phone call
- Review bank and credit card statements for any unusual activity
- Don’t routinely carry your Social Security card or any document with your SSN on it.
- Protect your personal financial information at home and on your computer.
- Check your credit report annually.
- Check your Social Security Administration earnings statement annually.
- Protect your personal computers by using firewalls, anti-spam/virus software, update security patches and change passwords for Internet accounts.
- Don’t give personal information over the phone, through the mail or the Internet unless you have either initiated the contact or are sure you know who is asking.
What can you do if you are a victim of income tax identity theft to help get your case resolved sooner: The best thing to do is to file a police report and then mail a paper tax return with an attached Form 14039 Identity Theft Affidavit and a copy of the police report to the IRS. This will shave an average of 54 days off of the time it takes the IRS to process your claim.