Identity Theft – Prevention & Reporting

June 1st, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

“Identity Theft” is a global problem that is not expected to decline or even be eliminated.  Truly said “An ounce of prevention is worth far more than a pound of cure”, or rectification.  From usa.gov:

Identity (ID) theft happens when someone steals your personal information to commit fraud. The identity thief may use your information to apply for credit, file taxes, or get medical services. These acts can damage your credit status, and cost you time and money to restore your good name.”

You must always be proactively engaged in the monitoring of all of your financial accounts, loans, invoices or bills for items that you did not authorize, or purchase, unexplained notifications from lenders for loans for which you did not apply, or unexplained debt collection calls.

Should you become the victim of Identity Theft, you should immediately contact your local law enforcement offices and the Federal Trade Commission [ Identity Theft Recovery Steps | IdentityTheft.gov ].  Again, from usa.gov:

” Freeze your credit files with EquifaxExperianInnovisTransUnion, and the National Consumer Telecommunications and Utilities Exchange for free. Credit freezes prevent someone from applying for and getting approval for a credit account or utility services in your name.”

You may also experience similar problems with your tax returns and the Internal Revenue Service.  However, there are some actions that you can take now to possibly avoid this situation:

Issue Number:    Tax Tip 2021-77

 Identity Theft Protection for Taxpayers in Six Steps

Thieves are actively working to steal the taxpayer information and identities. Everyone should do everything they can to prevent identity theft.

Tax-related identity theft occurs when someone uses a taxpayer’s stolen personal information, such as a Social Security number, to file a tax return claiming a false refund.

The IRS and its partners are working hard to prevent these types of crimes, and taxpayers can help by doing their part in stopping identify theft.

Here are some tips to help taxpayers protect themselves against identity theft. Taxpayers should:

  • Always use security software. This software should have firewall and anti-virus protections.• Use strong, unique passwords. They should also consider using a password manager.• Learn to recognize and avoid phishing emails, threatening calls and texts from thieves. These scammers pose as legitimate organizations such as banks, credit card companies, and even the IRS.• Don’t click on links in unsolicited emails or messages from unknown senders. People shouldn’t click on links or download attachments from emails that seem suspicious, even if they appear to be from senders they know.• Protect personal information and that of any dependents. For example, people shouldn’t routinely carry around their Social Security cards. They should also make sure tax records are secure.
  • Get an Identity Protection PIN. The Identity Protection PIN is a six-digit code known only to the taxpayer and to the IRS that helps prevent identity thieves from filing fraudulent tax returns using a taxpayer’s personally identifiable information.

More information:
Publication 4524, Security Awareness for Taxpayers
Publication 5367, Identity Protection PIN Opt-In Program for Taxpayers
Identity Theft Central
Taxpayer Guide to Identity Theft

Share this tip on social media — #IRSTaxTip: Identity theft protection for taxpayers in six steps https://go.usa.gov/x6gm9

 

 

Posted by Bill Seabrooke