How does identity theft affect your taxes? How to protect yourself against tax identity theft? Are You a victim of tax identity theft?
The IRS has worked hard to help victims of identity theft by making improvements and shortening the time it takes to resolve these complex situations. Your taxes can be affected if your Social Security number is used to file a fraudulent return or to claim a refund or credit. A taxpayer ’s SSN can be stolen through a data breach, a computer hack or a lost wallet.
The IRS will send a letter to the taxpayer and will not process the tax return until hearing back from the taxpayer. The identity theft indicator lets the IRS know to give extra scrutiny to any tax returns filed under your taxpayer identification number. This flag helps the IRS better detect possible future fraudulent return filings and stop the return before sending any refund. Visit the Identity Theft Central section at the IRS. If you get an IRS letter that requests you to verify your identity , it’s possible someone used your SSN to file a tax return.
The IRS Taxpayer Protection Program identifies potential identity theft returns as a precautionary measure to protect you. I tried to e-file but it was rejected because a return was already filed with my social security number. SSN that would appear to be some kind of identity theft and IRS will deal with the situation this also could be handled by your local police, or national authorities if there is a case of ID.
If someone uses your information to file a fraudulent tax return , he or she is looking to get your tax refund. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. With tax identity theft , a criminal uses your name, birth date and social security number to file a fraudulent tax return. Besides those three pieces of information, all of the details of the return are typically false – engineered to calculate the largest tax refund possible. Answer Simple Questions About Your Life And We Do The Rest.
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