Identity theft can take several forms and is a serious crime. It can be very costly, both in time to counteract it and in money spent to straighten out the problems it creates. While you are correcting the problem you may be denied a home loan, a car loan, a job, education, or housing, and you may be arrested for a crime you did not commit. Identity theft occurs when someone uses your personal information, e.g. social security number, bank account number, or credit card information to commit fraud.
It is easy to understand how identity thieves could gain access to your bank accounts or could use you credit cards, but it is important to realize that your tax records can also be affected. Two examples are as follows: 1. An identity thief can use your social security number to file a return requesting a refund in your name. When you file your actual return, the IRS will assume you have filed a duplicate return and that the first return received is the correct one. 2. An undocumented worker can get a job using your social security number. At the end of the year a W-2 will be issued to the undocumented worker and you will receive a notice stating that you have not reported all your income.
What are the indications of this type of fraud?
If the IRS sends you a notice, indicating that more than one tax return was filed in your name or that you received income from an employer unknown to you, you should suspect that you have been the victim of identity theft. Contact the IRS immediately either by phone or by mail at the number or the address provided on the notice. Explain the circumstances. IRS examiners will work with you and with other agencies such as the Social Security Administration to resolve the problem.
One other significant fact: the IRS never requests personal taxpayer information by e-mail. If you receive a request for information of this type by e-mail, it is very likely an attempt to steal your identity.
Guard your Social Security Number!
- Don't give your Social Security Number to a business just because they ask for it. Find out why they need it before giving it out. See if there are less sensitive numbers, which may be used for identification. Only give out the Social Security Number when absolutely necessary.
- Don't carry your Social Security Number in your purse or wallet. Keep the card in a secure place.
- Make sure your employer is taking steps to protect your personal information.
- Safeguard W-2's and 1099 forms and any other records which contain your Social Security Number.
Other Steps to take if Your Identity is stolen
- File a report with the Federal Trade Commission. (For help in doing this go to the FTC web site.)
- Contact the fraud department of any one of the three credit agencies. They will place a fraud alert on your credit file and inform the other two credit agencies so they can follow suit.
- Close all accounts and cancel all credit cards that you think have been tampered with or used fraudulently,
- File a police report and use copies of it to document any claims or reports.
Identity theft can create a serious upset in your life, but prompt action can help to mitigate the problems. If you are a victim, be sure to inform the office, especially if your tax records are involved.
