By Stephanie L. Tenczar, MSA
Identity theft has been a growing concern over the recent years, and you may not even be aware that you have become a victim until long after the theft occurs. The IRS has been working to expand their measures to help detect information that may be incorrect due to identity theft.
The IRS has been dealing with many cases over the years that involve fraudulently filed returns where someone is claiming to be a person they are not in order to receive this person’s benefits, refunds, etc. or for a number of other reasons. While the IRS has always verified your tax return information to their records, they are expanding their process with advanced identity theft screening filters to help identify and flag fraudulently filed returns.
If you receive a notice from the IRS, immediately respond to the name and number printed on the letter – do not put this off. This may be the first indication you receive alerting you that you are a potential victim of identity theft. Pay attention to the reason for the notice and look for key wording that may be present signaling issuance due to possible identity theft:
• 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, or
• IRS records indicate you received wages from an employer unknown to you.
To protect yourself against identity theft, the IRS suggests the following:
• Don’t carry your Social Security card or any document(s) with your SSN on it.
• Don’t give a business your SSN just because they ask. Give it only when required.
• Protect your financial information.
• Secure personal information in your home.
• 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 on the internet unless you have initiated the contact or you are sure you know who you are dealing with.
• Check your credit report every 12 months.
Even if you believe you have been extremely careful with your personal information, it is imperative that you check your credit report annually. Take the initiative as you may not be aware that fraudulent activity is going on with your financial affairs until much time has passed allowing the fraud to become more difficult to unwind and recover from. You can contact Equifax, Experian, or TransUnion for a copy of your credit report.
Other ways to help protect your identity include the following:
• Shred all trash that contains personal information such as your SSN, account numbers, etc.
• Be alert to emails or mailings that suggest you have an account you do not recognize.
• Don’t reply to an email that is claiming to be the IRS, a bank, a credit card company, etc. asking for your personal and/or financial information. For more information regarding this common scam, visit this website.
The IRS maintains that it does not initiate contact with taxpayers by email to request personal or financial information, so be sure to not fall victim to what may seem like a legitimate request. If you did not receive a notice from the IRS but would still like to speak with them about identity theft, you can call them at 800-908-4490 or visit the IRS website on Identity Theft. If you would like to discuss this subject further, please call Stephanie Tenczar (stenczar@pmn.com) at 617-426-9440 or any member of our tax service team.
Note: This article represents a general overview of or opinion on certain tax issues or developments and should not be relied upon without an independent, professional analysis of how any of these provisions may apply to a specific situation. We recommend you consult your professional tax advisor before taking any action based on anything in this article.
IRS CIRCULAR 230 NOTICE: In compliance with U.S. Treasury Circular 230 Regulations and any applicable state laws, we hereby notify you that any tax advice contained in the body of this document, or attachments thereto, was not intended or written to be used, and cannot be used, by the recipient or any other party for the purpose of (1) avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.