Identity theft happens when someone steals personal information for
financial gain. Tax-related identity theft happens when someone uses another
person’s stolen Social Security number (SSN) or Employer Identification Number
(EIN) to file a tax return to obtain a fraudulent refund.
Many people first find out they are victims of identity theft when they
submit their tax returns. That’s because the IRS lets them know someone else
already used their SSN to file.
The IRS continues to work hard to stop identity theft with a strategy of
prevention, detection and victim assistance. So far, the agency has stopped
millions of dollars from getting into the hands of thieves.
Check out these eight tips on how to protect against identity theft:
1. Taxes. Security. Together. The IRS, the states and
the tax industry need everyone’s help. The IRS launched The Taxes. Security.
Together. awareness campaign in 2015 to inform people about ways to protect
their personal, tax and financial data.
2. Protect Personal and Financial Records. Taxpayers
should not carry their Social Security card in their wallet or purse. They
should only provide their Social Security number if it’s necessary.
Protect
personal information at home and protect personal computers with anti-spam
and anti-virus software. Routinely change passwords for online accounts.
3. Don’t Fall for Scams. Criminals often try to
impersonate banks, credit card companies and even the IRS hoping to steal
personal data. Learn to recognize and avoid those fake communications. Also,
the IRS will not call a taxpayer threatening a lawsuit, arrest or to demand
immediate payment.
Beware
of threatening phone calls from someone claiming to be from the IRS.
4. Report Tax-Related ID Theft. Here’s what taxpayers
should do if they cannot e-file their return because someone already filed
using their SSN:
- File a tax return by
paper and pay any taxes owed.
- File an IRS Form 14039,
Identity Theft Affidavit. Print the form and mail or fax it according to
the instructions. Include it with the paper tax return and/or attach a
police report describing the theft if available.
- File a report with the
Federal Trade Commission using the FTC Complaint Assistant.
- Contact Social Security
Administration at www.ssa.gov
and type in “identity theft” in the search box.
- Contact financial
institutions to report the alleged identity theft.
- Contact one of the three
credit bureaus so they can place a fraud alert or credit freeze on the
affected account.
- Check with the
applicable state tax agency to see if there are additional steps to take
at the state level.
5. IRS Letters. If the IRS identifies a suspicious tax
return with a taxpayer’s stolen SSN, that taxpayer may receive a letter asking
them verify their identity by calling a special number or visiting an IRS
Taxpayer Assistance Center.
6. IP PIN. If a taxpayer is a confirmed ID theft
victim, the IRS may issue them an
IP
PIN. The IP PIN is a unique six-digit number that the taxpayer uses to
e-file their tax return. Each year, they will receive an IRS letter with a new
IP PIN.
7. Report Suspicious Activity. If taxpayers suspect or
know of an individual or business that is committing tax fraud, they can visit
IRS.gov and follow the chart on
How
to Report Suspected Tax Fraud Activity.
8. Service Options. Information about tax-related
identity theft is available online. The IRS has a
special
section on IRS.gov devoted to identity theft and information for victims to
obtain assistance.
For more on this Topic, see the
Taxpayer
Guide to Identity Theft.
Avoid scams. The IRS does not initiate contact using social media or text
message. The first contact normally comes in the mail. Those wondering if they
owe money to the IRS can
view
their tax account information on IRS.gov to find out.