Over the past four years the IRS has blocked more than 19 million suspicious tax returns from being processed. Unfortunately, not all of the fraudulent returns filed under taxpayer’s stolen tax identification numbers have been blocked and, last year alone, 1400 criminals were prosecuted for receiving funds by filing fabricated returns and refund claims.
The IRS has been aggressively pursuing these individuals and informing the public of the risk to it of these false returns. Not only does it impact the individual whose return is involved, but it hurts all taxpayers because the government is losing money when it pays these false refunds.
To help combat these criminals, the IRS has released Publication 5027 “Identity Theft Information for Taxpayers”. It sets out the warning signs that you may be a victim, steps to follow if you become a victim and tips on how to reduce your risk of becoming a victim. The later includes:
- Don’t carry your Social Security card or papers bearing your SSN on them.
- Don’t provide a business your SSN just because they ask.
- Take steps to protect your financial information at home and on your computers.
- Check your credit report at least annually.
- Check your Social Security Administration earnings statement annually
- Don’t give personal information over the phone, through the mail or the internet unless you initiated the contact and you know for sure who is asking for it. Note the IRS does not contact taxpayers by email, text messages or social media channels to request this type of information.
For further information, please see the above Publication or visit www.irs.gov/identitytheft and the FTC’s www.identitytheft.gov. The government has just announced another resource to help protect your identity. Please visit: Taxes. Security. Together.