Identity Theft and Taxes

Identity theft related to taxes can occur when someone uses another person's personal information—like their Social Security number—to file a fraudulent tax return or to gain access to tax refunds. Here are some key points to consider regarding identity theft and taxes:

How Identity Theft Happens

1. Data Breaches: Cybercriminals may steal personal information from companies, healthcare providers, or government agencies.
2. Phishing Scams: Fraudsters may send emails or messages pretending to be legitimate organizations to trick individuals into providing their personal information.
3. Mail Theft: Stealing tax documents or personal information from mailboxes can also lead to identity theft.
4. Social Media: Sharing personal information publicly can make it easier for identity thieves to gather the necessary data.

Signs of Tax Related Identity Theft

• Receiving a tax refund or a notice from the IRS for a tax return you did not file.
• Being notified by the IRS that more than one tax return was filed using your Social Security number.
• Getting bills from the IRS for tax returns that you didn’t file.

Steps to Take if You're a Victim

1. Report to the IRS: Contact the IRS immediately at 1-800-908-4490. They can help you resolve the issue and provide an Identity Theft Affidavit (Form 14039) that you may need to fill out.
2. File a Police Report: Report the identity theft to your local police department. This can help establish a record of the crime.
3. Place a Fraud Alert: Contact one of the three major credit bureaus (Equifax, Experian, TransUnion) to place a fraud alert on your credit report.
4. Credit Freeze: Consider freezing your credit to prevent new accounts from being opened in your name.
5. Monitor Your Accounts: Regularly check bank statements, credit reports, and financial accounts for any unauthorized activity.
6. Identity Theft Protection: Consider using identity theft protection services that monitor your personal information and accounts.

Prevention Tips

• Safeguard Personal Information: Be cautious about sharing personal information online and in public spaces.
• Use Secure Connections: When filing taxes online or providing personal information, ensure you are using a secure internet connection.
• Strong Passwords: Use strong, unique passwords for financial accounts and change them regularly.
• Be Cautious with Emails: Be wary of unsolicited emails or messages asking for personal information.

Tax Filing and Identity Theft
The IRS has implemented measures like the Identity Protection PIN (IPPIN) for victims of identity theft, which acts as an added layer of security when filing tax returns.
If you suspect your information has been compromised, filing for an extension may provide additional time to ensure your return is accurate and legitimate.

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