Tax identity theft occurs when an identity thief uses a taxpayer’s stolen identity to file a fraudulent return and claim the identity theft victim’s tax refund. Thieves invent phony wages or other income, submit the information electronically, and receive the fraudulent refund via mail or direct deposit.
- Tax identity theft happens when a someone uses your information to file a fraudulent tax return and collect the refund before you do. Most people realize they’re victims of this fraud when the Internal Revenue Service (IRS) notifies them that more than one tax return was filed using their Social Security number.
How does tax identity theft happen?
Tax-related identity theft occurs when someone uses your stolen personal information, including your Social Security number, to file a tax return claiming a fraudulent refund. If you suspect you are a victim of identity theft, continue to pay your taxes and file your tax return, even if you must file a paper return.
Can someone steal your tax ID?
Your tax data can be stolen in a number of ways: theft of mail or tax returns, corrupt tax-preparation services, phishing emails from impostors, or hacks of tax firms and employers’ personnel records. Some tax scammers file in the name of deceased taxpayers, or steal children’s identities to claim them as dependents.
How can someone steal my tax refund?
Armed with little more than your name, birthdate and Social Security number, a crook can file a fraudulent tax return and collect a refund. Then, when you go to file your legitimate return, the IRS blocks you because its records show your return has already been filed.
How can I find out if someone filed taxes in my name?
Consult With the IRS IRS officials can review the current status of your tax return to determine whether or not someone has already filed a return using your identity. Contact the IRS at 1-800-829-0433 if you think someone has filed your taxes without your permission.
How can tax identity theft occur quizlet?
Occurs when criminals use your Social Security Number in combination with fake information resulting in the creating of new identities. Criminals send these claims to the Internal Revenue Service (IRS) using stolen personal details such as your social security number (SSN) and name.
What happens if someone filed taxes in your name?
If someone uses your information to file a fraudulent tax return, he or she is looking to get your tax refund. You’ll want to work with the IRS as soon as you discover the identity theft to ensure that your actual return is processed as quickly as possible.
What can someone do with my tax ID?
Once someone gets your EIN number, he can establish corporate credit card accounts, business banking accounts and even establish personal credit without your knowing it. The theft of your EIN can be combined with thieves accessing your mail.
What do I do if someone stole my tax documents?
Call the IRS Identity Protection Specialized Unit right away at 800-908-4490. Create a file with every piece of paperwork you can get your hands on, dating back several years, to help prove you are who you say you are. File a police report and an IRS ID Theft Affidavit Form 14039.
What are 2 possible actions you can take to prevent having your identity stolen?
How to Prevent Identity Theft
- Freeze your credit.
- Collect mail daily.
- Review credit card and bank statements regularly.
- Shred documents containing personal information before disposing of them.
- Create different passwords for your accounts.
- Review credit reports annually.
- Install antivirus software.
Can someone take my tax refund?
Federal law allows only state and federal government agencies (not individual or private creditors) to take your refund as payment toward a debt. However, once you deposit the refund into your bank account, these rules no longer apply.
How can you protect yourself from tax identity theft?
10 Steps to Avoiding Tax-Return Identity Theft
- Leave your Social Security card home.
- Keep your SSN private.
- Make your passwords work for you.
- Protect against computer spam and viruses.
- Keep financial information private.
- Beware of phishing.
- Shred bank and tax documents.
- Reduce credit card solicitations.
How do I know if I am a victim of identity theft?
How Do I Know if My Identity Has Been Stolen?
- Statements or bills for accounts you never opened arriving in the mail.
- Statements or bills for legitimate accounts not showing up.
- You’re unexpectedly denied credit.
- Unauthorized bank transactions or withdrawals.
What to do if someone claimed me on their taxes without my permission?
You should call the IRS at 1-800-829-1040 to report the error and ask them how to proceed. This number is available 24/7 and will help you proceed in handling the error. In addition, you may want to print and mail your return because it generally takes 15 days for the IRS to update their records.
What if someone filed my taxes without me knowing?
When you discover another a tax return has been filed with your Social Security number, you’ll use IRS Form 14039 to alert the IRS. After you complete Form 14039, mail it to the IRS with a copy of your Social Security card and driver’s license.
Is there a way to find out if someone claimed you on their taxes?
The IRS won’t tell you who claimed your dependent. Usually, you can identify the possibilities and ask (commonly, a former spouse). But if you don’t suspect anyone who could have claimed the dependent, your dependent may be a victim of tax identity theft.