Imagine this: you fill out your tax forms and calculate your rather large refund. In your mind, you’ve already got it spent. You file online, then hit send. After waiting to receive your refund, you check on its status, only to find that someone else got it – using your Social Security number and name, no less.
You’ve just become a victim of tax-related identity theft.
The Internal Revenue Service is currently grappling with a five-fold increase in taxpayer identity theft. Between 2008 and 2010, the number of incidents grew at an astounding rate – there were 51, 702 incidents in 2008, compared to a whopping 248,357 in 2010.
The truly heinous part is that most of these thieves aren’t caught or prosecuted.
IRS Commissioner Douglas Shulman said the IRS Criminal Division concentrates on schemes of national score, and added that 95 percent of those prosecuted for refund-related identity theft go to prison.
Tax identity thieves typically submit returns for refunds early in the filing season. The legitimate taxpayer usually files later, and then learns from the IRS that two returns were filed using the same Social Security number.
If you believe you are a victim of tax-related identity theft, call the IRS specialized unit at 1-800-908-4490.
If your tax records are currently not affected by identity theft, but you believe you may be at risk due to a lost or stolen wallet, questionable credit card activity or some other activity, submit a copy of your valid federal- or state-issued ID, such as a Social Security card, driver’s license or passport, along with a copy of a police report and a completed IRS identity theft affidavit (Form 14039) to: Internal Revenue Service, P.O. Box 9039, Andover, MA 01810-0939.
Tags: Identity Theft, LifeLock, tax id theft, Tax identity theft
