Identity Theft in Regard to your Tax Returns

LockAs you are most likely aware, identity theft is a problem.  Your tax account has the possibility of being stolen, but the IRS is working hard to protect your identity when it comes to income tax filing.  Identity thieves try filing fraudulent refund claims using your identifying information. You are then victimized because your refund is delayed.

The IRS, Justice Department and other agencies are focused on preventing, detecting and resolving identity theft cases as soon as possible.  To stop identity thieves up front, the IRS has made a significant increase for the 2013 tax season in the number and quality of identity theft screening filters that spot fraudulent tax returns before refunds are issued. The IRS has dozens of identity theft screens now in place to protect tax refunds.

By late 2012, the IRS assigned more than 3,000 IRS employees — over double from 2011 — to work on identity theft-related issues. IRS employees are working to prevent refund fraud, investigate identity theft-related crimes and help taxpayers who have been victimized by identity thieves. In addition, the IRS has trained 35,000 employees who work with taxpayers to recognize identity theft indicators and help people victimized by identity theft.

If you receive a notice from the IRS indicating identity theft, follow the instructions in that notice. If you believe you are at risk of identity theft due to lost or stolen personal information you should contact the IRS Identity Protection Specialized Unit at 800-908-4490 immediately so the agency can take action to secure your tax account. You will be asked to complete the IRS Identity Theft Affidavit, Form 14039, and follow the instructions on the back of the form based on your situation.

If you feel your tax account has been compromised, contact the IRS immediately.  More information on this topic can be found on the IRS website at http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft.