30 October 2012

TAX Identity Theft

Why you should be concerned about your tax return.

In 2011 over 5 Billion dollars in refund checks were delivered. That’s a large sum of money considering all of it went to the Identity thieves.
Even though many of the fraudulent returns were filed using social security numbers of children, the deceased and individuals that would not normally file,There is very little to stop tax identity theft  from happening to us.  
An increasing number of taxpayers have filed their returns only to discover someone stole their identity and   filed a return without their knowledge. (I know of at least 3 people who had that experience). In addition to a feeling of violation and major annoyance, other issues that could arise are:
  • Delayed Refund
  • IRS having the wrong address on file
  • Audit notice
A delayed refund check due to identity theft would cause many financial upsets. 
The IRS having an incorrect address might not be so bad for some but, an audit notice could cause a nervous breakdown for others.
Jokes aside, if you're a victim of Tax Identity theft, the first course of action should be to fill out a form 14039 with the IRS. (send it certified with return receipt). 
The next step is to call to confirm the IRS received your form 10439. Make sure you get the name, badge number and time you called the IRS representative to CYA (cover your assets).
 The next thing you should do is file a police report. Why you may ask?
Just in case you get audited you will have the police report as an affidavit. Let's face the facts, that the IRS is a large organization and many (if not most) of the departments in the IRS do not communicate with one another.
 Without a police report and proof of a filed form 14039, it could be well into the next year before the identity theft issue is resolved.

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