Tax Related ID Theft: What to Look For

Tax related identity theft occurs when a thief uses someone’s stolen Social Security number to file a tax return and claim a fraudulent refund.

Here are some things people should know about identity theft, including warning signs and steps to take after identity theft occurs.

Warning Signs: Taxpayers should be alert to tax related identity theft if they are contacted by the IRS or their tax preparer about:

• More than one tax return being filed
• Additional tax owed
• A refund offset
• Collection actions taken against the taxpayer for a year when they did not file a tax return
• IRS records indicating they received wages or other income from an employer for whom the taxpayer did not work.

Steps to take if someone becomes a victim:

• File a complaint with the FTC at identitytheft.gov
• Contact one of the three major credit bureaus to place a fraud alert on their credit records
• Contact their financial institutions to close any financial or credit accounts opened without permission or that were tampered with by identity thieves
• Respond immediately to any IRS notice and call the number provided in the letter
• Complete IRS Form 14039, Identity Theft Affidavit.