Tax identity theft 'continues to be a huge problem,' expert says. Here's how to protect yourself (2024)

FAQs

Tax identity theft 'continues to be a huge problem,' expert says. Here's how to protect yourself? ›

If you're looking for added protection, experts suggest getting an identity protection PIN, or IP PIN, from the IRS. This six-digit number blocks others from using your Social Security number or individual taxpayer identification number to file a tax return.

In addition to alerting the IRS, you should consider placing a freeze on your credit report file with all three credit bureaus to prevent unauthorized accounts from being opened. The Federal Trade Commission also suggests filing an identity theft report with your local police department, and also with the FTC online.

If someone else has filed a tax return with your identifying information before you file your legitimate tax return, the IRS will send you a notice informing you what has occurred and what steps to take.

Contact the Internal Revenue Service (IRS) at 1-800-908-4490 or visit them online, if you believe someone is using your SSN to work, get your tax refund, or other abuses involving taxes. Order free credit reports annually from the three major credit bureaus (Equifax, Experian, and TransUnion).

An unexpected email purporting to be from the IRS is always a scam. The IRS does not initiate contact with taxpayers by email or social media to request personal or financial information. If you receive a scam email claiming to be from the IRS, forward the email to phishing@irs.gov.

LifeLock's identity monitoring and alerts are similar to those of other identity theft protection options that are definitely worth it. However, the value and purpose of some of LifeLock's additional services are unclear (such as “fictitious identity monitoring”).

LifeLock covers key aspects of identity theft protection.

We go above and beyond to keep your money safe, monitor for identity theft in places that banks, credit card providers, and credit bureaus may ignore, and reimburse out-of-pocket expenses incurred as a result of identity theft.

All confirmed tax-related identity theft victims will be placed into the Identity Protection PIN Program and annually be issued a new, six-digit IP PIN to prevent someone else from filing a return using their identity and it will be required to be used on all future filings.

What to do when someone else uses your Social Security number to file taxes? ›

You may also contact the IRS for specialized assistance at 800-908-4490. These IRS employees are available to answer questions about identity theft and resolve any tax account issues that resulted from identity theft.

The IRS will work to correct your stolen identity refund fraud, issue your refund (if you're getting a refund), and protect you from future tax identity theft. This process can take as little as three months or as long as a year, depending on your circ*mstances.

When you receive more than $10 of interest in a bank account during the year, the bank has to report that interest to the IRS on Form 1099-INT. If you have investment accounts, the IRS can see them in dividend and stock sales reportings through Forms 1099-DIV and 1099-B.

When you do not get credit, you will have to send it to them with the back of the check, so they can properly credit you. The IRS says to put your Social Security number on the memo line of a check when sending in a payment. There is a chance of identity theft when you do that.

than 2.4 million people in the US have been targeted by IRS impersonators, with more than 14,700 victims losing a total of $72.8 million.

Here's what happens in this situation: You may receive one of the following letters from the IRS asking you to verify your identity and tax return information. We won't be able to process the tax return, issue refunds, or credit any overpayments to your account until we hear from you.

If your e-filed return is rejected because of a duplicate filing under your Social Security number, or if the IRS instructs you to do so, complete Form 14039, Identity Theft AffidavitPDF, attach it to the back of your completed paper tax return and mail to the IRS location based upon the state you reside.

All online tax preparation products for tax professionals offer the option for multi-factor authentication as an additional protection for accounts. The IRS strongly urges all tax professionals to use this option.

Tax-related identity theft is when someone uses your Social Security number to file a false tax return claiming a fraudulent refund. Your tax account is most at risk if the data breach involves both your SSN and financial data, such as wages.