The thieves are eager to submit tax returns under your name and claim your refund dollars for themselves. The IRS is already warning consumers against new email scams that target specific email accounts. Scam phone calls are also abundant. So what steps can consumers take to protect their identity?
Webinars
The FTC offers multiple free webinars and Twitter chats to talk about this issue. We suggest you visit them to participate, however, here is a sampling of some of their offerings:
- January 29, 2 p.m. EST — The FTC and the Identity Theft Resource Center co-host a webinar for consumers about tax identity theft, IRS imposter scams, how to protect yourself, and recovery steps for victims.
- January 30, 2:30 p.m. EST — The FTC, AARP Fraud Watch Network, AARP Foundation Tax-Aide program, and the Treasury Inspector General for Tax Administration invite consumers to a webinar about tax identity theft and IRS imposter scams.
- January 31, 11 a.m. EST — The FTC and the Department of Veterans Affairs co-host a Twitter chat for service members, veterans, and their families about minimizing your risk of tax identity theft and recovering if you’re a victim.
- January 31, 1 p.m. EST — The FTC, the Department of Veterans Affairs, and the Treasury Inspector General for Tax Administration discuss tax identity theft, IRS imposter scams, and what to do if you become a victim. This is a closed webinar for Veterans Administration employees, patients, and contractors.
- February 1, 1 p.m. EST — The FTC and IRS offer a free webinar for small businesses about tax identity theft, imposter scams that target businesses, cybersecurity, data breaches, and free resources for your business, employees and customers.
- February 1, 3 p.m. EST — The FTC and the Identity Theft Resource Center invite consumers to join a Twitter chat about tax identity theft, its warning signs, and what to do if it happens to you.
Additional Tips
Aside from educating yourself with the webinars and chats listed above, below are some steps you can take to keep your tax identity safe.
- File your return early. Early filing makes it difficult for identity thieves to file a return on your behalf.
- Respond to all IRS mail promptly.
- Learn to recognize and avoid phishing emails, threatening calls, and texts posing as your bank, credit cards, or the IRS.
- Don’t click on unknown or suspicious links or open attachments from strange emails.
- Don’t care your Social Security Card with you.
- Shred old bank and tax documents as well as credit card offers.
- Stay informed of data breaches that may affect you and put a fraud alert on your credit record if you find you were a victim of a data breach.
- Protect your mail by installing a lockable mailbox.
- Become well versed in your credit and bank statements. Therefore, we suggest that our clients pay attention to credit scores and freeze credit information if they won’t be applying for credit anytime soon.
- Place credit freezes on anyone under 18, the disabled, and the elderly as they are the most likely to become victims to identity theft.
- Be sure that no financial transactions may be authorized by email. This can help prevent fraudulent wire requests.
If You’re a Victim
First, don’t panic. Being notified that a return has already been filed for you can be frightening. However, the IRS has made tax-related identity theft a top priority. Here is what the IRS says you should do if you are a victim of identity theft from the IRS:
- All victims of identity theft should follow the recommendations of the Federal Trade Commission: File a report with the local police.
- File a complaint with the Federal Trade Commission at www.consumer.ftc.gov or the FTC Identity Theft hotline at 877-438-4338 or TTY 866-653-4261.
- Contact one of the three major credit bureaus to place a “fraud alert’ on your account:
- Equifax – www.equifax.com, 800-525-6285
- Experian – www.experian.com, 888-397-3742
- TransUnion – www.transunion.com, 800-680-7289
- Close any accounts that have been tampered with or opened fraudulently.
If your SSN has been compromised and you know or suspect you may be a victim of tax-related identity theft, take these additional steps:
- Respond immediately to any IRS notice; call the number provided.
- Complete IRS Form 14039, Identity Theft Affidavit. Use a fillable form at IRS.gov, and send according to instructions.
- Continue to pay taxes and file your return.
- If you previously contacted the IRS and did not have a resolution, contact the Identity Protection Specialized Unit at 800-908-4490. They have teams available to assist.
The IRS has greatly reduced the time it takes to resolve identity theft cases. Unfortunately, these are extremely complex cases, frequently touching on multiple issues and multiple tax years. It can be time consuming. A typical case can take about 120 days to resolve.
Contact the Taxpayer Advocate Service toll-free at 877-777-4778 if you are experiencing financial difficulties and are unable to get your issue resolved.
