Recovering From Tax Related Identity Theft

It’s that time of year again, when American citizens face the IRS head-on. It feels that way anyway. It’s also the time of year when tax fraud schemes abound, and this year is no different. Tax scammers are on the loose posing as IRS representatives with one goal in mind: separating you from your hard earned cash. Hackers use phishing (email), vishing (telephone), and smishing (text) as their go-to tactics, posing as the IRS. Keeping aware of the latest scams is your best defense against tax scammers, and there’s no shortage of information available helping you stay safe this tax season.

Every year, the IRS reminds people of the hazards of tax season, including massive identity theft. IRS identity theft happens when hackers obtain Social Security numbers through a variety of tactics. They then file a tax return that always ends with a big refund coming their way. Unfortunately, signs that you may be a victim of identity theft are not immediately clear. Being aware of post-hack telltale signs can help limit the damage. The IRS and the FTC (Federal Trade Commission) suggest ways to mitigate identity theft quickly, making it easier to recover should it happen to you.

The IRS:

- If you get an IRS notice about identity theft, immediately call the phone number provided by them.

- Fill out the Identity Theft Affidavit, Form 14039 if you’re notified of a duplicate filing using your SSN.

- Follow instructions to print the form, attach it to your return and follow mailing instructions.

The FTC:

File an FTC complaint at identitytheft.gov.

- Immediately contact one of the big three credit bureaus to put a fraud alert on your credit records. Ask the bureau you contact to make the other two bureaus aware of the fraud: TransUnion, www.TransUnion.com, 800-680-7289; Equifax, www.Equifax.com, 800-525-6285; Experian, www.Experian.com, 888-397-3742.

- Contact your bank and other financial institutions to let them know of the theft. They will close any fraudulent credit or financial accounts opened in your name.

The Tax Return Delay:

- The IRS states that although your tax refund may be delayed due to identity theft, it generally takes 120 to 180 days, depending on the complexity of the fraud.

Stickley on Security
Published April 24, 2019