Tax identification theft is one of the evasive as well as most devastating forms of identity theft. It can go undetected until the IRS informs victims that there is something wrong with their tax return.
What’s Tax Identity Theft
Tax identity theft takes place when a tax return records under another person’s title return or in order to claim that individual’s tax benefits. This type of identity theft is common because many people wait to file their taxes until the end of tax year which provides a open window to criminals to file tax returns. For taxation identity theft to take place, a individual’s social security number is needed. Unfortunately, it can be rather straightforward to steal a individual’s social security number. As an example, a criminal may steal a social security number via online scams, house break-ins, bodily purse or wallet theft, telephone scams, medical institutions, workplace hacks, etc.. Tax identity theft most commonly occurs when a tax return using another individual’s social security number is filed by a criminal in addition to a fraudulent W-2 type. The combination of W-2 form and the social security number will lead to a larger sum of money for the tax yield. This makes certain that the burglar receives the most from the victim’s return. In 2013, the IRS paid approximately $5.8 billion for fraudulent tax returns. Fortunately, the frequency of taxation identity theft has fallen like assigning personnel to concentrate on fighting tax identity theft as precautions have been obtained by the IRS.
Why You Should Care About Tax Identity Theft
Tax identity theft is no offense that is small. Not only can a tax return be filed by offenders using a social security number, but they’re also able to commit other identity theft related crimes. Although other identity theft crimes are severe, taxation identity theft is among the most forms of identity theft because of potential loss, significant stress, and conflict with the IRS over tax returns. The IRS doesn’t require the tax process lightly, therefore if something goes wrong with a tax return, if or not a case of taxation identity theft or a individual’s filing mistake, they will make certain they get replies.
Things to Do if You’re a Victim
You might have your suspicions, but you need to await a notice sent by the IRS telling you there is something wrong with your tax return, to know for certain if you are a victim of taxation identity theft. When you receive this note there are a few steps that you should take:
- Immediately respond to this IRS notice you received in the mail by calling the number on the notice.
- Print and complete the official IRS Form 14039 and mail it back to the address posted on the notice. It may be helpful to add a copy.
- If requested by the IRS (via email ), verify your identity online for the IRS to prove that you did not document the fraudulent tax return.
- To avoid scams or additional battle, do not forget that the IRS contacts individuals strictly by mail, not by phone or email.
Some warning signs of tax identity theft you should Know about, according to the IRS, include the following:
- More than one tax return was registered under your name and social security number
- The IRS notifies you that you need to pay additional tax, you encounter a”refund cancel”, or you have”had collection actions taken against you for a year that you did not file a tax return”
- The IRS approaches you about additional income or wages it sounds you’ve obtained”in an employer for whom you didn’t work”
From us, you can also read:
- 100 Ways to Reduce Identity Theft
- Tax Identity Theft 2017
How to Avoid Tax Identity Theft in The Future
Listed below are a Couple of precautions you can take to prevent becoming a tax identity theft victim in the long run:
- Maintain your social security card in a safe and protected environment. Do not carry your social security card or number with you and make certain that you have your number.
- Be careful when giving out important info. Avoid giving your credit card number, your driver’s license number, your entire name, your date of birth, your passport, or your social security number to an institution, business, or individual.
- Purchase identity theft protection program. Though these businesses can not stop identity theft in complete, they can help you find whether that crime happen to you quickly. Here’s a complete list of organizations preventing identity theft.
- Be Mindful of IRS scams. You will not be contacted by the IRS through telephone or email, instead they simply contact through mail. If you receive any email or phone call claiming to be the IRS, don’t answer or respond. Tax identity theft offenders will strive to obtain your information through these means.
- Safe your personal computers and apparatus. Make sure you have special passwords on all of your devices and anti virus and virus protection software on your own computers. Prevent sharing any information that is sensitive and data on device or almost any computer.
- Keep updated on the newest data breaches. Your social security number could be at risk if you are a victim of a major data breach such as the recent Equifax breach. Understanding about these breaches can get you a head start on securing your data.
- Keep tabs on taxation records in a safe place in your house, such as a locked filing cabinet or safe in a non-obvious room on your property.
- Know the warning signs of tax identity theft.
- Understand how to report tax identity theft. See directions and regularly check for updated directions in the IRS website.
The Future of Tax Identity Theft
Taxation identity theft continues to be a major issue in the USA although the IRS is currently advancing its ability to stop tax identity theft. The fact that taxation identity theft is hard to catch and recover from makes it one of the most worrisome forms of identity theft. If you observe the signs and follow the steps outlined previously to report tax identification theft, you’ll get a opportunity to earn a complete recovery. Identity theft in general is an issue that plagues millions of individuals every year. Knowing what measures to take in order to prevent tax identity theft as well as identity theft might be your very best opportunity to remain protected.