Identity theft is a very real and very serious problem in
the United States. And, sadly, one of the most common identity-theft crimes is
when a scammer manages to steal and pocket another person’s income tax refund.
Typically, the person who has been “had” does not find out until he or she goes
to file a real return.
While, sadly, there is not really anything you can do to
100% guarantee that this won’t happen to you or that you won’t become the
victim of another type of identity theft, there are, at the very least, things
you can do to prevent this kind of thing from happening, and, worst case
scenario, to lessen the damage if it does.
First and foremost, one of the best things that you can do
for yourself is to educate yourself on the warning signs of income tax fraud.
That way, if these warning signs do happen to crop up in your life, you will
take notice, contact the IRS, and, hopefully, stop what is happening in its
tracks.
Some warning signs of identity theft typically include:
l
Getting a notification/alert that more than one
income tax return has been filed in your name
l
Cancellation of state and/or federal benefits
for reasons you do not understand
l
You show a balance due but were not required to
file a return
l
Your earned income is higher than you actually
earned
l
Refund offset occurs when you were not required
to file a return
l
The IRS has inaccurate information about your
employer
l
You have a collections action in a year in which
you were not required to file a return
If you notice any of these signs, and/or if something just
seems “amiss”with your taxes, be sure to contact the IRS, as well as, ideally,
a tax professional, to help you sort things out before the situation gets even
messier.
If You Notice These Signs…
As mentioned, if you notice any signs of trouble, then you
should act immediately.
As soon as you have verified the fact that identity theft
did occur, you will want to fill out and send in form 14039, the identity theft
affidavit, preferably with the help and guidance of a seasoned professional.
This will let the IRS know that you have been victimized and
will start you down the right path to undoing any damage that has been done.
Remember, this process can be complex to go through,
especially alone, so you are highly advised, whenever possible, to seek help
from a financial professional.
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