What You Need to Know about Fraudulant Returns

In today’s world, people commit all kinds of fraud, and one of the worst is tax fraud, often committed by someone filing a false return in your name. If they have your social security number and various other pieces of information, it’s really not that hard to do.   

Usually, when people do this, they’re hoping to collect a tax refund on your behalf. They typically act quickly, filing as soon as the IRS starts accepting returns. For this reason, it’s always in your best interest to file as early as possible. However, knowing the warning signs of this kind of tax fraud and acting quickly if you discover or suspect it can also help you.

Have You Been Victimized?

Could you be a victim of tax return fraud without even knowing it?

Sadly, a lot of people don’t even realize there’s a problem until they try to e-file their return and get a notification that a return has already been filed on their behalf. If this happens to you and you know you haven’t filed a return, report it to the IRS immediately.

You might also be notified by the IRS if it suspects that a fraudulent return has been filed. When this happens, they’ll send you a notice and will not send out any refunds owed until they’ve confirmed your identity and verified which return is real and legitimately from you. This most often happens if they have two returns in hand or if they notice something odd or “off” about your return.

How to Verify Your Identity

If you have been victimized or if the government simply thinks that you have, the IRS will, as mentioned above, take steps to confirm your identity.

Most often, you can do this online via the IRS’ official website following their instructions. You’ll need a prior year’s tax return, your birthdate, and your social security number to verify.

Remember, too, that any instructions about verifying your identity will come from the IRS via an official letter, not through email. Do not click on any links, even if they look like they’re from the IRS, and don’t enter sensitive information on any non-official webpages. These can all be attempts to further commit fraud against you.

Being a victim of tax return fraud is scary. But, there are things you can do to protect yourself, both after the incident and in the future. Work carefully with a qualified tax professional to learn more about keeping yourself and your information secure.