Insights

What You Must Know About Identity Theft and the IRS

Written by Marketing | 7/2/15 4:00 AM

Over the last several years, income tax preparers have seen a significant rise in the number of returns filed that involve identity theft issues.  Identity theft is when someone uses or attempts to use another person’s identifying information without the authority to do so.   The IRS has recently reported that they have stopped more than 3.6 million fraudulent returns during the 2014 filing season.

Tax-related identify theft normally takes place in two forms:  Someone trying to file a return under your name and SSN in order to obtain a refund or someone using your personal information to obtain employment and thus trying to shift their tax burden to your return.   Taxpayers normally learn they are a victim of identity theft by being unable to file an electronic return due to the fact a return has already been filed using your SSN or by receiving a notice form the IRS showing unreported income that you are not aware of.

If you are a victim of an identity theft issue with the IRS, Baldwin CPAs can help.  We are well-versed in the processes of filing an Identity Theft Affidavit with the IRS and also in applying for a specialized personal identification number with the IRS to avoid future fraudulent filings under your SSN.  Identity theft can be a very unsettling situation and we would be happy to help you through the process to ease your worries.  If you have any questions, please give us a call.

posted by Lisa DeVaughn Foley, CPA, CGMA