First and foremost, you always want to contact the police. Call them right away and do what they tell you to do. Second, call a tax lawyer and talk to them about your situation and do what they say. Any type of identity theft can turn your life upside down. It creates financial problems and can tarnish your credit history, not to mention the time, money, and patience it takes to resolve. Now fraudsters are targeting your tax refund!
Tax-related
identity theft occurs when someone uses your Social Security number (SSN) to
file a tax return claiming a fraudulent refund. Thieves frequently file early
to avoid detection, and make off with your refund before you’ve had a chance to
file. The IRS reports that tax identity theft is on the rise. So it’s important
to understand the warning signs and know how to deal with tax identity theft
when it occurs.
Warning Signs
Did
you file your taxes only to have it rejected by the IRS because a return using
your Social Security number was already accepted? Or, did the IRS send you a
letter saying it identified a suspicious return using your personal
information? These are signs that your tax identity may be in the hands of criminals.
Other warning signs include:
- You owe additional taxes, refund offset, or have a collection action against you for a year you did not file a tax return.
- IRS indicates you received wages from an employer you can’t identify.
- Your state or federal benefits were reduced or cancelled because a government agency received information reporting an income change.
What to Do If You Are a Victim
If
you’ve been the victim of tax identity theft, it’s important to act quickly to
prevent any additional fraud from occurring. Unfortunately, your refunds will
likely be delayed for an extended period while the IRS resolves the matter. A
typical case can take about 180 days to complete.
Follow
these steps to secure your personal information and any refund rightfully due from
the IRS:
1.
Identity Theft Affidavit with the IRS
If you
did not receive a notice but believe you’ve been the victim of identity theft,
contact the IRS Identity Protection Specialized Unit. You will also need to
fill out the Identity Theft Affidavit.
2.
Respond to Any IRS Notice
If the
IRS receives a suspicious tax return filing, they may send a “5071C Letter”
asking that you verify your identity. Typically, you can identify yourself over
the phone or through the IRS’s Identity Verification Service website.
3.
Report Fraud to Federal Trade Commission (FTC)
Complaints
from taxpayers help the FTC detect larger patterns of fraud and abuse. The FTC
has a web-based reporting form that asks a few questions about the fraud you
suffered. It should only take a moment to complete, and your participation will
assist with the creation of programs to fight tax identity fraud.
4.
Contact Your State Tax Agency
Although
criminals typically target your federal return, you will want to also contact
your state tax agency to the report income tax fraud. Call either the state’s
tax hotline or go to their website and find the fraud reporting procedures.
Some states require you to fill out a form to mail.
5.
Place a Fraud Alert on Your Credit Record
Call
one of the nationwide credit reporting companies, such as Equifax, Experian or
TransUnion. Ask for a fraud alert to be placed on your credit report. The
company you call is required to contact the other two credit agencies so they
will put the fraud alerts on their files too. An initial alert is good for 90
days. Taking this step makes it hard for someone to fraudulently open new
accounts in your name.
6.
Contact your Financial Institutions
When
someone has enough of your personal information to file a tax return, they may
be able to access your bank accounts. Contact your bank and other financial
institutions to have a fraud alert placed on your account.
Free Consultation with a Tax Identity Theft Lawyer
It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you need help regarding identity theft, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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