Arguably, there seems to be nothing worse than tax season. From trying to figure out how to correctly file your taxes to the inevitable stress that comes along with it, taxpayers can’t seem to catch a break. Unfortunately, there is added pressure that you may not even know about: refund identity theft.
Last year, 43% of all identity theft complaints involved tax returns. The most common case involves the theft of a taxpayers return check. Generally, this is a fairly easy and less risky crime for identity thieves as all they really need is a social security number and some fake documents. Honest taxpayers typically find out they are a victim when they get a letter from the IRS stating that they’ve filed more than one return. Fortunately for taxpayers, Identity Theft of this nature is a top priority for the IRS and there are many ways to protect yourself.
Preventative Tips
Although there is no guaranteed way to avoid return theft, there are things you can do to prevent it.
1. File early to block identity thieves
* If the thief is successful in his actions, your return will not be processed and you will not receive a refund because the IRS believes you were already paid. At this point, you will have to open a case with the IRS (IRS Identity Protection Specialized Unit: 800-908-4490, extension 245) which takes about 6 months to resolve in which you will, finally, receive your money.
2. Drop your return off at the post office, not in your unprotected mailbox
3. Use a secure computer/network if you are filing electronically
4. ALWAYS keep your social security number private
If you are, or unfortunately become, a victim of such fraud, it is important to know these identity thieves may try to claim your refund for next year as well. To keep yourself safe, request a verification PIN code from the IRS that only you can use to file future returns. Also, remember that the IRS always initially contacts taxpayers by postal mail. If you receive an email or text that claims to be the IRS, do not respond.
If you would like or require counsel for identity theft cases, please contact Michigan Pure Tax Resolution at (248) 329-1160. We are available 24/7.